Destination Canada Funding

Destination Canada Funding

Destination Canada Funding

The federal government provided $58 million in funding for Destination Canada (at that time called the CTC) in 2014-15, reflecting a dramatic reduction from $99 million in 2001-02. While we recognize the importance of balancing the federal budget, we are concerned that cuts to Destination Canada funding are adversely impacting International Tourist Arrivals to Canada. In light of this, we support calls from the Canadian tourism industry to restore Destination Canada funding to internationally competitive levels. Moreover, we endorse the idea that GST paid by international visitors to Canada is a logical source of funding for Destination Canada.

Some tourism industry stakeholders have suggested that an ‘International Visitor Arrival Levy’ would be an acceptable means by which to fund Destination Canada. We strongly oppose this option. In our view, such an approach would increase Canadian air travel costs, thereby exacerbating our lack of competitiveness with respect to air access. Clearly, this would significantly undermine our efforts to reverse declines in international visitation to Canada.

Image – Chart – Government of Canada funding for the Canadian Tourism Commission ($Millions) Source TIAC & CTC 2014 Annual Report

Editors note:  In 2015 what was formerly the CTC (Canadian Tourism Commission) become Destination Canada.  All previous references to the CTC in this position statement have been updated to reflect the new name.