With total sales revenue of $9.8 billion reported in 2023, Canadian tour operators recorded an “impressive” bounce-back from the difficult days of the pandemic, says the Canadian Association of Tour Operators (CATO).
While “not surprising” as borders opened up and people travelled again after COVID, the figures released in CATO’s Economic Impact Analysis (EIA) 2023 statement also showed Canadian tour operators earning more comparatively than their US counterparts.
“Congratulation to all CATO members for their hard work in the recovery following the economic disaster caused by the COVID-19 pandemic in 2021,” stated CATO Chair, Brett Walker. “The cumulative sales as reported by CATO members in 2023 was $9.8 billion, compared to $15.9 billion as reported by USTOA members in their 2022 year-end economic impact analysis. That’s impressive! While there may not be any true comparison between the two analysis, one thing is for sure, with a market population of 1/10th the US, CATO members are generating many multiples more than 1/10th the revenue of our US counterparts.”
CATO has commissioned the consulting firm BDO to carry out a second study of the economic impact of Canadian tour operators for 2023. A first analysis was completed in 2021 to assess the situation following the pandemic. As opposed to 2021 which included members from ATOQ-Association des tours opérateurs du Québec, the 2023 report only contains results from CATO members as the response rate from ATOQ was deemed not statistically significant by BDO.
The initial study showed that between 2020 and 2021, employment and labour costs directly supported by tour operators who responded to the survey decreased significantly and overall economic output plummeted 94.6%.
The total economic output was at $5.4 billion in 2020, down to $291 million in 2021, but rebounded to $8.5 billion in 2023 – an increase of 57% from 2020.
Key findings
• The outputs estimated by the model are direct and indirect impacts on employment, labour income, and social and economic contributions.
• As the travel restrictions were lifted, the increased demand for travel enabled CATO members who responded to the survey to increase total full-time equivalent staff positions by 37% from 2020.
• Direct full-time employment in 2020 was 2,571, increasing to 3,702 in 2023.
• Of the 3,702 direct full-time positions reported in 2023, 72%, or 2,675, were held by women, an increase of 46.8% from 2020.
• Total employment, direct and indirect, was at 13,344 in 2020, down to 3,197 in 2021, and up to 21,824 in 2023, resulting in a 64% increase from 2020.
• Direct labour Income increased by 38% to $222.9M in 2023, from $161.5M in 2020.
• Total direct and Indirect labour income was at $864M in 2020, down to $145M in 2021, and up to $1.33 billion in 2023, an increase of 53% from 2020.
• Total sales revenue of $9.8 billion reported in 2023.
CATO says above numbers reflect the positive changes that have taken place amongst CATO members and the market more generally in last few years.
The association adds that its members going forward are committed to improving their social and climate impacts and to this end, CATO members have formed a standing sustainability committee and partnered with USTOA on joint sustainability initiatives as well as through Tourism Cares.