Practical Solutions and Cross-Sector Collaboration Key to Tourism’s Success
Tourism is often of as a mix of its key sectors: lodging, transportation, food, entertainment, and attractions. However, the true power of tourism lies in how these components work together, creating experiences that are far more impactful—and profitable—than any single part.
The 2025 Tourism Congress brought together five national association leaders from airlines, airports, lodging, live music, and restaurants to discuss how addressing individual sector challenges while working collaboratively can drive economic growth, job creation, and stronger communities.
The panelists were united in the view that the future of Canadian tourism hinges on confronting real, tangible obstacles: surging affordability concerns, an urgent need to rethink workforce pipelines, regulatory red tape, and the undervaluing of tourism’s role in the nation’s economy.
Affordability was top of mind. Kelly Higginson, president and CEO of Restaurants Canada said that the GST holiday that ran from December 2024 to February 2025 stimulated 24,000 restaurant jobs. Without the special tax break, the alternative would have been a reduction of staff hours. Moreover, the tax break helped employers retain more staff.
“The affordability crisis is not going away,” she told delegates. “It’s having a dramatic impact on the main streets of our communities, with 75% of Canadians cutting back on dining choices. If government were to remove the GST from foodservice, we could create 65,000 new jobs.”
The theme of investing in people and tourism continued with Beth McMahon, president and CEO of the Hotel Association of Canada. With new limitations on the Temporary Foreign Workers Program and the tendency of the public to view tourism employment as entry-level jobs with no career path, industry needs to tap into reliable new sources of workers. McMahon suggested that employers needed to project their enthusiasm, highlighting the successful career paths available, and investing in the future of their workers.
She also spoke about the importance of shifting government’s perspective. “The budget was great if you make widgets, but we don’t have widgets, we have places. There are so many beautiful destinations in Canada, but we should be creating more. The visitor economy is a superpower.”
The importance of affordability came up again in a discussion of regional air access by both Jeff Morrison, president and CEO of the National Airlines Council of Canada, and Monette Pasher, president of the Canadian Airports Council. Morrison focused on the pressure on Canadian airfare prices caused by a plethora of add-on fees, charges and taxes. “Aviation shouldn’t be treated like a cash cow,” he said.
Pasher added that regional access is critical to both tourism and small businesses that rely on belly cargo to get high-end and perishable goods to domestic and international markets. One new regional route can generate $40 million and 210 jobs – a huge impact in smaller regions. She noted that Canada was a decade behind other countries in offering travellers a seamless end-to-end experience. “We have to improve efficiencies,” she explained. “And we need government to drive that forward with regulatory and policy reform.
Another key element in the tourism mix is entertainment. Erin Benjamin, president and CEO of the Canadian Live Music Association, reminded delegates that it’s not just the huge mega-events like Taylor Swift that drives tourism. Music played in small communities, local venues, bars and restaurants draws people from outside their regions. It’s a catalyst for local tourism. But, with labour and cost issues surging and affecting bars and restaurants across the country, live music venues are disappearing.
One consistent theme was the need for both industry and government to think differently about tourism, including profitability. “We can’t be afraid of using the “P” word,” said Higginson.
Morrison added, “It’s time for government to realize that our exports include services like tourism, not just goods.” That sentiment was echoed by Benjamin who wondered “What is the barrier? Everyone is trying to be heard, but the needle hasn’t moved far enough.”
The Canadian tourism industry is a complex ecosystem, with each sector playing a vital role in attracting visitors, encouraging longer stays, and increasing spending. The panelists’ shared message was clear: we need practical solutions and cross-sector collaboration if tourism is to remain a catalyst for local jobs and vibrant, sustainable communities.
Story by Debra Sara Ward
