Destinations International and EY-Parthenon: new report links inbound tourism in Canada and export growth

Destinations International publishes report linking Canadian tourism and export growth

Destinations International (DI) published on 5 February 2026 the research report The Impact of the Visitor Economy on Canadian Exports, prepared in collaboration with the EY-Parthenon consulting team, which analyses the link between inbound international visits and the long-term growth of Canadian exports of goods and services. At a time when productivity, competitiveness and the diversification of trade relations are being intensely debated in Canada, the authors of the report seek to expand the usual framework in which tourism is viewed primarily through visitor spending and employment in hospitality, accommodation and transportation. At the heart of the new analysis is the thesis that the “visitor economy” can act as a lever for broader economic development, including trade, investment and the strengthening of international business ties.

According to the findings in the study’s executive summary, the research finds a statistically significant relationship between growth in the number of international visitors and Canada’s export performance. The estimate in the report states that a 1% increase in the number of international visitors is associated with about CAD 1.06 billion in additional exports of Canadian goods and services over a two-year period, over and above the direct export of tourism services. The authors emphasize that the effects do not necessarily appear immediately, but rather through a time lag in which contacts, reputational gains and business initiatives gradually translate into more concrete trade flows.

Why the topic is in focus: tourism and “big” economic questions

In public debates, tourism is often reduced to the season, hospitality revenues and pressure on infrastructure, but broader strategic discussions are also unfolding in the background: how to increase productivity, how to expand export markets and how to strengthen the country’s image in international competition. It is precisely in this context that DI and EY-Parthenon put forward the thesis that inbound visits can be a tool of “soft” economic diplomacy: visitors encounter Canadian companies, technologies, educational institutions and cultural offerings, and some of these experiences may over time influence business decisions abroad. From the authors’ point of view, an international visitor is not only a consumer, but also a potential future partner, investor or intermediary in bringing Canadian products into new markets.

Canadian institutions and the tourism sector, on the other hand, have for years emphasized that non-resident spending in Canada is treated as an export of services. The tourism statistical system, for example, records “tourism exports” as the spending of international visitors within the country. However, DI’s report attempts to quantify an additional link: can the arrival of foreign visitors also stimulate exports in sectors that are not directly related to travel.

From inbound visits to exports: four channels highlighted by the authors

In explaining possible mechanisms, DI and EY-Parthenon highlight several channels through which inbound travel can strengthen a country’s export capacity. Central is the logic of “familiarity and trust”: international buyers and partners enter business more easily with a market they know, where they have already stayed and with which they have a personal impression, especially in sectors where reputation and reliability strongly influence the decision.

• Business events, congresses and conferences: business travel, trade fairs and congresses create an environment for negotiations, networking and the development of partnerships. The authors note that it is precisely at such events that initial contacts often arise that in the following years become export contracts or joint projects.
• Air links and “trade corridors”: a greater number of visitors can contribute to the development of new routes and increased capacity, which reduces travel costs and time for business people, but also facilitates logistics for export-oriented industries. In this sense, stronger connectivity serves not only tourism, but the wider economy as well.
• Destination reputation and national brand: the destination experience can increase trust in the country, and trust is often a prerequisite for market entry, especially in areas where buyers seek long-term suppliers or partners. The report suggests that the “brand” of the destination and the country can become an indirect competitive advantage for Canadian companies.
• The relationship effect over time: international visitors during travel become familiar with products, services and business culture, and some of these experiences are later carried into business decisions in their home countries. The authors note in the summary that this process most often takes place with a lag, which is why they observed the two-year period after the increase in arrivals.

In statements related to the publication of the report, DI President and CEO Don Welsh emphasizes that the visitor economy is not a “standalone sector,” but a platform that can create conditions for exports, investment and the long-term prosperity of communities. A similar tone is found in a statement by Mauricio Zelaya of EY-Parthenon, who says that the potential of the visitor economy goes beyond tourism revenues and can influence international engagement, reputation and investment outcomes.

Tourism as an export of services, but also as a trigger for broader growth

That tourism already functions as an export is also confirmed by sector analyses: for example, reports on the value of travel and tourism in Canada emphasize that international visitors bring “new money” into the country, which in economic terms is treated as an export of services. The report on the value of travel and tourism for 2023 states total tourism spending of CAD 124.4 billion, with an estimate that international tourism spending amounted to CAD 28.9 billion. In its more recent communication materials, Destination Canada further emphasizes the scale of visitors’ direct spending and the role of international visitors in generating “export dollars” through travel.

DI’s study, however, focuses on the “second-round” effect: the potential for visits to open doors for Canadian exporters in sectors such as technology, creative industries, food and beverage, education or professional services. According to available information from the summary, the argument is that successful destinations—those that attract international visitors and business events—often create conditions that then also help export sectors. This includes international visibility, better connectivity and stronger contact networks.

Methodology: multi-year data and econometric analysis

According to the publicly released description, the report relies on a panel econometric analysis covering more than 20 years of data. Such an approach allows comparison of changes over time and between observed units, while controlling for certain factors that can affect both tourism and exports. From the summary it is clear that the authors interpret the finding as a “statistically significant relationship,” and the key figure—CAD 1.06 billion in additional exports for a 1% growth in international visitors—is presented as an estimate derived from a long-term dataset.

In analyses like this, it is also important to emphasize limitations. Correlation does not necessarily mean direct causation: it is possible, for example, that stronger economic growth simultaneously raises both exports and the country’s attractiveness as a destination, or that infrastructure investment in parallel increases both capacity for visits and capacity for exports. DI and EY-Parthenon, according to available materials, emphasize the need to interpret the finding as an impetus for policy and strategy, and not as a promise of an automatic result without other prerequisites.

Federal framework: the “Canada 365” strategy and positioning the visitor economy

Canada’s federal tourism growth strategy Canada 365: Welcoming the World. Every Day sets a framework for strengthening the sector and its role in the economic development of communities across the country. Publicly available documents emphasize that the visitor economy is one of the important service exports and provide projections of growth in tourism’s contribution to the economy in the coming years. The strategy also addresses issues of capacity, destination attractiveness and the creation of conditions for year-round operations.

DI’s report adds an extra dimension to that framework: if tourism already is an export of services, then targeted attraction of international visits, especially business visits, can have broader effects on trade as well. In practice, this means that tourism tools—destination marketing, event attraction, connectivity development—can be viewed as part of economic policy, not only as a sector of leisure and services.

Data from statistics: tourism recovery with fluctuations in “tourism exports”

Official statistics show that tourism in Canada after the pandemic is going through phases of recovery and adjustment. In its national tourism indicators for the first quarter of 2025, Statistics Canada notes that domestic tourism spending increased, while “tourism exports”—non-resident spending in Canada—recorded a decline compared to the previous quarter. The same report also notes a decline in the number of overnight stays by international visitors in the observed period, with a note that certain arrival indicators in later months also showed a year-on-year decrease.

Such data are important for interpreting DI’s thesis. If part of the “export effect” is mediated by international contacts and air connectivity, then changes in arrivals and in the structure of visitors are directly linked to how much the study’s potential will be realized in reality. In other words, even the best model depends on context: geopolitical relations, global economic cycles, energy prices, and also on how destinations manage growth and which markets they target.

Sector reactions and possible impact on investment

For destination organizations and local authorities, such findings offer a new argument in discussions with government and business. In descriptions of activities related to the report, DI states that it is a resource intended for advocacy: the goal is to show that investments in attracting international visitors and events can have an effect that goes beyond short-term revenue, because they contribute to reputation, connectivity and business networks. In these discussions, the question of priorities also arises: whether more will be invested in attracting business events and congresses, in air transport capacity and in projects that strengthen Canada’s visibility in targeted markets.

If DI’s estimate proves convincing in the broader political and business environment, it is possible that part of tourism and destination marketing budgets will be justified through trade policy objectives as well. This could mean a stronger focus on attracting events with large international reach, on developing connectivity to key markets, and on cooperation between tourism organizations and export agencies, chambers of commerce and sectors that want to strengthen their presence abroad.

DI also announced a webinar presenting the findings of the joint report, suggesting that the organization wants to encourage expert discussion among destinations and decision-makers. At a time when economic strategies increasingly rely on a combination of “hard” measures and reputational effects, DI’s report seeks to provide a numerical framework for the thesis that international visits do not end at the tourism border, but under certain conditions can spill over into Canadian exports.

Sources:
- Destinations International Online Learning Center – webinar announcement and description of research on the link between the visitor economy and Canada’s export performance ( link )
- eTurboNews – article on the publication of the DI and EY-Parthenon report, including quotes and a summary of key findings and the key estimate ( link )
- Statistics Canada – National tourism indicators, first quarter of 2025: data on tourism spending, tourism exports and the movement of international arrivals ( link )
- Government of Canada (ISED) – Canada 365: the federal tourism growth strategy and positioning the visitor economy in economic development ( link )
- Tourism Data Collective / Destination Canada – report on the value of travel and tourism in Canada for 2023 (PDF) and key spending amounts ( link )
- Destination Canada – “Value of Travel & Tourism” tool/summary (2025) emphasizing direct spending and the share of international visitors in export revenues (PDF) ( link )