Canada's Tourism Recovery Absorbing Geographic Disparities

The nation of Canada is currently coping with a decreased number of tourists from China, a nation that traditionally served as one of its most prominent sources of tourism. The continued absence of Chinese tourists arriving in Canada has resulted in the country adapting to this change by seeking out other sources of tourism growth. Despite the absence of Chinese tourists, Canada has surpassed its pre-pandemic tourism revenue thanks to an increase in visitors from the U.S., Europe, Mexico, and Australia. Nonetheless, disputes between the leaders of Canada and China have resulted in geopolitical tensions affecting tourism.

The country has sought to make up for lost tourists in other ways, such as through its new fund to attract business events and its plans to co-host the 2026 FIFA World Cup. Despite these adaptations, the country's recovery has been uneven, with more than half of Canada's small-and-medium-sized businesses struggling to pay back government loans. In an attempt to remedy this, the government has extended loan deadlines and offered incentives to attract business events to Canada.

Canada's geographic disparities also play a role in its tourism industry, with its northern lights and "dark skies" experiences proving popular among international tourists. Nevertheless, some Canadian businesses are struggling to cope with outstanding loans, with 1.5% fewer tourism businesses in Canada than in 2019. In response, Destination Canada has launched a new data project, Canadian Tourism Data Collective, to provide comprehensive tourism data to A&D communities. Overall, Canada faces challenges amid its tourism recovery, with geopolitical tensions, geographic disparities, and the struggle of small businesses impacting the industry.