Are you looking to understand how tourism contributes to Ontario’s economy and the value each visitor brings? SIXT.VN is here to help you navigate the world of Ontario tourism and discover the factors that determine the economic impact of each visitor. We’ll explore key metrics, data sources, and insights to help you understand the true value of tourism in Ontario, from average daily rates to traveler spending habits.
1. Understanding the Economic Value of Ontario Tourism
The economic value of tourism in Ontario is significant, encompassing various aspects such as visitor spending, tax revenue, and job creation. Tourism receipts reflect the total spending by visitors in Ontario, impacting the province’s Gross Domestic Product (GDP), employment, and tax revenues. The Ministry of Tourism, Culture and Sport estimates the economic impact of tourism in Ontario using the Tourism Regional Economic Impact Model (TREIM).
1.1. Key Components of Tourism Value
- Visitor Spending: The total amount spent by tourists on accommodation, food, transportation, recreation, and other goods and services.
- Tourism Receipts: The overall revenue generated by tourism-related activities, including visitor spending and travel arrangement fees.
- Gross Domestic Product (GDP): The contribution of tourism to the provincial economy, reflecting the value of goods and services produced by the tourism sector.
- Employment: The number of jobs supported by the tourism industry, including full-time, part-time, and seasonal positions.
- Tax Revenue: The taxes generated from tourism-related activities, benefiting federal, provincial, and municipal governments.
1.2. Key Factors That Determine Economic Values of Ontario Tourism
The value of tourism in Ontario is influenced by the origins of travelers. Ontario tourism sees most of its spending come from Ontario, at 62.2%, but sees significant spending from The United States, overseas and other Canadian provinces, contributing 13.7%, 15.9% and 8.3% respectively. The spending of each type of traveler will be different based on their activities during their stay, the length of their stay, and the services they utilize.
2. Calculating Tourism Value Per Visitor
To determine the tourism value per visitor in Ontario, several factors and data points need to be considered. This involves analyzing visitor statistics, spending patterns, and economic impact assessments.
2.1. Data Sources for Calculation
- Statistics Canada: Provides data on visitor travel, border crossings, and economic indicators.
- Ministry of Tourism, Culture and Sport: Offers tourism statistics, economic impact assessments, and reports on tourism performance.
- Tourism Regional Economic Impact Model (TREIM): Used to estimate the economic impact of tourism in Ontario.
2.2. Steps to Calculate Tourism Value Per Visitor
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Determine Total Tourism Receipts: Obtain the total tourism receipts for Ontario in a specific period (e.g., annually).
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Calculate the Number of Visitors: Determine the total number of visitors to Ontario during the same period.
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Divide Total Tourism Receipts by the Number of Visitors: Divide the total tourism receipts by the number of visitors to find the average tourism value per visitor.
Formula:
Tourism Value Per Visitor = Total Tourism Receipts / Number of Visitors
2.3. Example Calculation
Let’s assume the following data for the year 2022:
- Total Tourism Receipts in Ontario: $35.1 billion
- Total Number of Visitors to Ontario: 10 million
Using the formula:
Tourism Value Per Visitor = $35.1 billion / 10 million = $3,510
Therefore, the average tourism value per visitor in Ontario for 2022 is $3,510.
3. Factors Influencing Tourism Value Per Visitor
Several factors can influence the tourism value per visitor, including the origin of visitors, the purpose of their trip, and the types of activities they engage in.
3.1. Visitor Origin
Visitors from different regions may have varying spending habits. For instance, international visitors often spend more than domestic tourists due to longer stays and higher expenses on transportation and accommodation.
| Visitor Group | Spending Habits |
|---|---|
| International Visitors | Tend to spend more due to longer stays, higher transportation costs, and premium accommodation choices. They often engage in diverse activities, including cultural experiences, dining, and shopping. |
| Domestic Tourists | Generally spend less than international visitors, with shorter stays and lower transportation costs. They may opt for budget-friendly accommodation and dining options, focusing on local attractions and recreational activities closer to their home base. |
3.2. Purpose of Trip
Business travelers may spend more on accommodation and dining, while leisure travelers may allocate more to recreational activities and attractions.
| Trip Purpose | Spending Allocation |
|---|---|
| Business Travelers | Higher spending on premium accommodation, business-related services, and fine dining. They often require convenient transportation and may engage in networking events and corporate entertainment. |
| Leisure Travelers | More expenditure on recreational activities, attractions, local tours, and souvenirs. They often seek unique cultural experiences and may prioritize budget-friendly accommodation and dining options to maximize their budget. |
| Visiting Friends/Family | Tend to spend less on accommodation (as they may stay with locals) but may spend more on gifts and activities to enjoy with friends/family. |
3.3. Length of Stay
Longer stays typically result in higher overall spending, as visitors require more accommodation, meals, and entertainment.
| Length of Stay | Spending Pattern |
|---|---|
| Extended Stay | Higher cumulative spending on accommodation, food, local transportation, and various activities. Visitors may explore multiple regions, leading to diverse spending habits over time. |
| Short Trip | Focused spending on essential services and key attractions, with budget-conscious choices to maximize the experience within a limited time. Prioritization of must-see landmarks and dining. |
3.4. Accommodation Type
Travelers opting for hotels or resorts tend to spend more than those staying in short-term rentals or with friends and family.
| Accommodation Type | Spending Habits |
|---|---|
| Hotels and Resorts | Higher spending on accommodation, room service, hotel dining, and on-site amenities. Visitors often enjoy additional services such as spa treatments, concierge services, and recreational facilities. |
| Short-Term Rentals (e.g., Airbnb) | Lower accommodation costs but potential higher spending on local groceries, dining out, and unique local experiences. Visitors often seek a more personalized and independent travel style. |
| Staying with Friends/Family | Lower accommodation costs; spending may shift towards activities, gifts, and dining experiences with hosts. |
3.5. Exchange Rates
Exchange rates between currencies can significantly impact the spending power of international visitors. A favorable exchange rate can encourage more spending, while an unfavorable one may lead to budget cuts. According to Ontario tourism data, in March 2025 the USD exchange rate was $1.44, a 6.1% change, the EUR exchange rate was $1.55, a 5.5% change, and the GBP exchange rate was $1.85, a 7.7% change.
4. Current Tourism Performance in Ontario
Understanding the current tourism performance provides valuable insights into the industry’s health and trends. Key indicators include border crossings, hotel statistics, and short-term rental data.
4.1. International Border Crossings
In March 2025, inbound border crossings from the United States totaled 623,580, a decrease of 9.3% compared to the previous year. Overseas inbound crossings were 119,071, a decrease of 19.2%. Total inbound crossings were 742,651, down 11.0%.
| Origin | March 2025 | Change (%) | January – March 2025 | Change (%) |
|---|---|---|---|---|
| From the United States | 623,580 | -9.3% | 1,633,891 | -1.8% |
| From overseas | 119,071 | -19.2% | 319,881 | -15.2% |
| Total Inbound | 742,651 | -11.0% | 1,953,772 | -4.3% |
4.2. Hotel Statistics
Hotel occupancy in March 2025 was 59.7%, a decrease of 2.2 percentage points. The average daily rate was $193.43, an increase of 1.2%.
| Category | March 2025 | Change (%) | January – March 2025 | Change (%) |
|---|---|---|---|---|
| Hotel occupancy | 59.7% | -2.2 | 56.5% | -0.7 |
| Hotel average daily rate | $193.43 | 1.2% | $185.52 | 2.0% |
4.3. Short-Term Rental Statistics
Short-term rental occupancy in March 2025 was 39.4%, with no change. The average daily rate was $253.66, an increase of 24.1%.
| Category | March 2025 | Change (%) | January – March 2025 | Change (%) |
|---|---|---|---|---|
| Short-term rental occupancy | 39.4% | 0.0 | 38.5% | 1.2% |
| Short-term rental average daily rate | $253.66 | 24.1% | $241.96 | 17.6% |
5. Factors Impacting Ontario’s Tourism Industry
The success of Ontario’s tourism sector is affected by external factors, necessitating strategic adaptation and resilience.
5.1. World Tourism Overview
Understanding global tourism trends helps benchmark Ontario’s performance. In 2019, world tourism receipts totaled US$5,912 billion, representing 6.7% of world GDP. Tourism GDP was US$9,127 billion, or 10.4% of world GDP.
| Metric | Value | Percentage of World GDP/Employment |
|---|---|---|
| Tourism Receipts (US$B) | 5,912 | 6.7% |
| Tourism GDP (US$B) | 9,127 | 10.4% |
| Tourism Employment (000s of jobs) | 328,208 | 10.1% |
| Tourism Foreign Earnings (US$B) | 1,708 | 6.6% |
| Consumer Spending on Tourism (US$B) | 4,251 | 8.7% |
5.2. Ontario’s Tourism Overview
In 2019, Ontario’s tourism receipts were CDN$38 billion, representing 4.3% of provincial GDP. Tourism GDP was CDN$36.8 billion, or 4.1% of provincial GDP.
| Metric | Value | Percentage of Provincial GDP/Employment |
|---|---|---|
| Tourism Receipts (CDN$B) | 38 | 4.3% |
| Tourism GDP (CDN$B) | 36.8 | 4.1% |
| Tourism Employment (000s of jobs) | 396 | 5.2% |
| Tourism Labour Income (CDN$B) | 22.3 | 4.5% |
| Provincial Tourism Tax Revenues (CDN$B) | 5.8 | 3.9% |
| Tourism Foreign Earnings (CDN$B) | 11.2 | 2.5% |
| Ontario Consumer Spending on Tourism (CDN$B) | 39.8 | 7.4% |
5.3. Tourism Quick Facts
- Ontario welcomed 10.2 million international overnight arrivals in 2019.
- International tourism receipts in Ontario totaled US$6.4 billion in 2019.
- Ontario travelers spent US$16.4 billion internationally in 2019.
6. Economic Impact of Tourism in Ontario
Tourism significantly contributes to Ontario’s economy through visitor spending, GDP, employment, and tax revenue.
6.1. Total Impact Data (2022)
| Impact Type | Tourism Receipts (Billions) | Visitor Spending (Billions) |
|---|---|---|
| Gross Domestic Product (Value Added) | $33.4 | $28.6 |
| Employment (Jobs) | 360,000 | 286,000 |
| Labour Income | $19.8 | $15.3 |
| Government Tax Revenue | $12.5 | $10.4 |
| Provincial Tax Revenue | $5.5 | $4.7 |
| Municipal Tax Revenue | $1.4 | $1.1 |
| Federal Tax Revenue | $5.6 | $4.5 |
6.2. Direct Impact Data (2022)
| Impact Type | Tourism Receipts (Billions) | Visitor Spending (Billions) |
|---|---|---|
| Gross Domestic Product (Value Added) | $18.2 | $14.9 |
| Employment (Jobs) | 240,000 | 194,000 |
| Labour Income | $10.3 | $7.9 |
| Government Tax Revenue | $7.3 | $6.4 |
| Provincial Tax Revenue | $3.7 | $3.3 |
| Municipal Tax Revenue | $511.8 million | $463.1 million |
| Federal Tax Revenue | $3.1 | $2.6 |
6.3. Tourism Regional Economic Impact Model (TREIM)
The TREIM modules are valuable tools for understanding the economic impact of tourism in Ontario, providing insights into visitor spending, operational expenses, investment expenditures, and convention center activity.
7. Historical Tourism Statistics
Analyzing historical data provides insights into long-term trends and performance fluctuations in Ontario’s tourism sector.
7.1. Tourism Receipts Over the Years
| Year | Tourism Receipts ($ billions) | Annual Percentage Change |
|---|---|---|
| 2013 | 28.5 | 1.6% |
| 2014 | 29.8 | 4.5% |
| 2015 | 32.3 | 8.4% |
| 2016 | 34.1 | 5.4% |
| 2017 | 36.1 | 5.9% |
| 2018 | 36.7 | 1.7% |
| 2019 | 38.0 | 3.4% |
| 2020 | 13.6 | -64.2% |
| 2021 | 16.4 | 20.5% |
| 2022 | 35.1 | 114.1% |
The 10-year average tourism receipts growth is 10.1%.
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10. FAQ: Understanding Tourism Value in Ontario
10.1. What is the definition of tourism receipts?
Tourism receipts include the spending of visitors in Ontario, the spending of Canadian residents in Ontario for trips outside the province, and commissions earned by travel arrangement businesses in Ontario.
10.2. How are border crossings used as an indicator of current performance?
Border crossings provide statistics on the total number of non-residents entering Canada or residents returning to Canada through Ontario’s international ports of entry.
10.3. What is the Tourism Regional Economic Impact Model (TREIM)?
TREIM estimates the economic impact (e.g., jobs, GDP, taxes) of visitor and business spending on the provincial and local economies.
10.4. What is considered a domestic trip in tourism statistics?
A domestic trip is defined as travel to a Canadian destination originating in Canada, involving an overnight trip or a same-day trip of 40km or more, excluding routine travel, commuting, or regular chores.
10.5. How does Statistics Canada contribute to tourism data?
Statistics Canada provides data on visitor travel, border crossings, and economic indicators through surveys like the National Travel Survey and the Visitor Travel Survey.
10.6. What are tourism front-line businesses or tourism-related industries?
These are businesses that sell products and services directly to travellers, such as accommodation, food and beverage services, arts, entertainment, recreation, travel services, and transportation enterprises.
10.7. How is the Travel Price Index calculated?
The Travel Price Index measures the inflation rate of travel-related goods and services in Ontario, based on the travel-related components of Ontario’s Consumer Price Index (CPI) released monthly by Statistics Canada.
10.8. What is included in visitor spending?
Visitor spending includes what visitors to Ontario spend while travelling in the province, including spending by Ontario residents on trip expenses at the point of origin.
10.9. How does Ontario’s tourism industry compare globally?
In 2019, Ontario welcomed 10.2 million international overnight arrivals. International tourism receipts in Ontario totaled US$6.4 billion, and Ontario travelers spent US$16.4 billion internationally.
10.10. What is the economic impact of tourism on Ontario’s GDP?
In 2022, tourism contributed $33.4 billion to Ontario’s GDP, with visitor spending accounting for $28.6 billion. The industry supported 360,000 jobs.
Understanding how to value tourism in Ontario per visitor involves analyzing various data points and economic indicators. By using the data and insights provided by SIXT.VN, you can gain a comprehensive understanding of the tourism industry’s value and its impact on the Ontario economy. Let SIXT.VN make your travel experience seamless and memorable.
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