Updated
Updated · Travelweek · Jun 5
CATO Says Tour Operators Lift Direct Economic Impact to $6.1 Billion as Jobs Reach 29,104
Updated
Updated · Travelweek · Jun 5

CATO Says Tour Operators Lift Direct Economic Impact to $6.1 Billion as Jobs Reach 29,104

1 articles · Updated · Travelweek · Jun 5

Summary

  • $6.1 billion in direct economic impact and 29,104 jobs by 2025 marked continued growth for Canadian tour operators, according to CATO’s latest BDO study, up from $5.3 billion and 21,824 jobs in 2023.
  • Total economic output, including indirect effects, rose to $9.9 billion from about $9.2 billion, while direct labour income increased to $276 million and combined direct and indirect labour income reached $1.542 billion.
  • Travel patterns shifted during the period: Canada-U.S. demand stayed below pre-pandemic levels and operators expect more softness, while sales grew for Europe, Mexico, the Caribbean, Latin America and some domestic trips, especially in Atlantic Canada.
  • Operators said they are expanding non-U.S. programming and adjusting products to match demand, while AI use remains early and focused on efficiency and customer service rather than replacing jobs.
  • The report is CATO’s third since 2021, framing the sector’s post-pandemic recovery as increasingly tied to diversification, sustainability efforts and resilience against economic and geopolitical uncertainty.

Insights

Is the boom for some Canadian tour operators masking a wider industry decline fueled by cost-of-living pressures?
Can AI help Canada's travel industry predict the next major tourism shift before it happens?
As Canadians increasingly avoid the U.S. for safety reasons, is this a permanent fracture in North American tourism?