Federal Contributions to Canadian Tourism: A Review of Federal Expenditures for Fiscal Year 2009/2010 & 2010/2011

Many departments and agencies support the development of Canada's tourism industry; their investments have a direct impact on tourism and help make Canada an attractive, dynamic destination.

Industry Canada (IC)

Industry Canada (IC) is responsible for federal tourism policy development and policy integration. As such, it is leading a Federal Tourism Strategy to bring greater consistency to the policies and programs that support tourism. It works with federal stakeholders to better communicate tourism's importance to the Canadian economy and how federal policy affects the sector's competitiveness. IC also maintains its dialogue with tourism industry representatives to enhance its knowledge of current and emerging tourism issues and opportunities. IC, under the EAP, delivered the 2-year Marquee Tourism Events Program which provided support to marquee festivals and events across Canada.

Aboriginal Affairs and Northern Development Canada (AANDC)

AANDC's economic development programs provide funding to Aboriginal peoples, community organizations (or organizations they designate), businesses, and economic institutions. Funding is used to advance business and economic development projects and the delivery of services to community members. The Department also encourages both the private and public sectors to add First Nations, Métis and Inuit peoples to their current workforce, and promotes the use of Aboriginal businesses for federal government supplies and services.

Through various programs, the Department recognizes tourism as an opportunity for Aboriginal entrepreneurs. In particular, it supports the Aboriginal businesses that operate attractions, accommodation services, transportation and food services, as well as retail sales businesses.

Programs have also been used to facilitate industry growth through research and strategic planning initiatives.

Atlantic Canada Opportunities Agency (ACOA)

ACOA works with businesses and communities to make them more innovative, productive and competitive. Therefore, the Agency continues to apply a coordinated regional strategy to promote and develop tourism in Canada. It works to promote the region as a tourism destination with international markets, and to increase the competitiveness and sustainability of the region's tourism industry.

Canada Economic Development for Quebec Regions (CED)

CED's mission is to promote long-term economic development in Quebec's regions with particular emphasis on areas with low economic growth or without enough productive employment opportunities. Through various programs, CED supports the development of innovative tourism products and the promotion of popular tourism events, and it also supports regional and sectoral tourism associations.

Canadian Heritage (PCH)

The Canadian Heritage Portfolio, which includes the Department of Canadian Heritage and its portfolio agencies, including national cultural institutions, play a vital role in the cultural and civic life of Canadians. The focus of Canadian Heritage policies, programs and institutions is to promote culture, the arts, heritage, official languages, citizenship and participation, Aboriginal, youth, and sport initiatives.

Tourism is not a primary objective of the Canadian Heritage's mandate. However, the programs and activities supported by the department and its portfolio agencies are major tourism draws and make a significant contribution to the tourism sector. Canadian Heritage was also the department responsible for coordinating the federal role in the 2010 Olympic and Paralympic Winter Games.

The Department is also engaged in culture and sport tourism through research and analysis that help articulate the relationship between culture/sport and tourism. The Department currently serves as the secretariat for the Federal-Provincial/Territorial Culture/Heritage and Tourism Initiative (FPTTI), a partnership between all provincial and territorial ministries responsible for culture and heritage and the Department of Canadian Heritage. The FPTTI supports collaboration and research, which contributes to greater awareness and understanding of the mutual benefits of strengthening the relationship and increasing the collaboration between culture and tourism.

PCH promotes skills development in the cultural and heritage sectors and enables them to offer an enhanced visitor experience. This support mainly consists of training and professional development workshops for workers and volunteers of museums, art galleries and archives.

Canadian Northern Economic Development Agency (CanNor)

CanNor aims to encourage long-term growth in the three territories by supporting regional development programs, awareness activities and investments in innovation and knowledge, among other things. Therefore, through the Strategic Investments in Northern Economic Development Program, the agency provides financial and other support for projects designed to stimulate and diversify the economy, improve coordination of federal programs and give Northern residents an important place in the market.

Canadian Tourism Commission (CTC)

The CTC is Canada's national marketing organization, and its vision is to inspire the world to explore Canada. As set out in the Canadian Tourism Commission Act, its purpose is to sustain a vibrant and profitable tourism industry by supporting a cooperative relationship between the private sector and the governments of Canada, the provinces and the territories. The CTC promotes Canada as an internationally competitive, premier, four-season tourism destination where travellers have access to extraordinary experiences. It provides a consistent voice for Canada in the international tourism marketplace. Along with its partners in the tourism industry and all levels of government, it markets Canada in 11 countries around the world, focusing on direct-to-consumer marketing, international travel trade, media and public relations, and meetings, conventions and incentive travel. In addition, the CTC has been recognized as a world leader in tourism market research and performance management with many competitors emulating the CTC's approaches in those areas.

Federal Economic Development Agency for Southern Ontario (FedDev)

FedDev Ontario supports economic and community development, innovation, and economic diversification, with contributions to communities, businesses and non-profit organizations in southern Ontario.

Although FedDev Ontario does not have direct program funding for the tourism sector, the Agency fosters economic development in a variety of key sectors, including tourism. For example, through its Southern Ontario Development Program, the Agency has supported projects with tourism components such as targeted marketing campaigns to reignite the tourism industry in certain regional areas and improving infrastructure at key tourist destinations in southern Ontario.

Human Resources and Skills Development Canada (HRSDC)

HRSDC's mission is to build a stronger and more competitive Canada, to support Canadians in making choices that help them live productive and rewarding lives, and to improve Canadians' quality of life. HRSDC develops policies that make Canada a society in which all can use their talents, skills and resources to participate in learning, work and their community; creates programs and supports initiatives that help Canadians move through life's transitions; and creates better outcomes for Canadians through service excellence with Service Canada and other partners.

HRSDC supports Canada's strategic, long-term plan, Advantage Canada, which seeks to create a knowledge advantage by fostering the best-educated, most skilled, and most flexible workforce in the world.

HRSDC invests in a variety programs that help individuals prepare for jobs in all sectors, including tourism. HRSDC's programs support skills development, and may fund projects with a focus on the tourism sector. For example, through the Aboriginal Skills and Training Strategic Investment Fund (ASTSIF), HRSDC provided funding to several projects in Aboriginal communities, such as the Hospitality and Tourism Employment Readiness Program, Tourism and Hospitality Careers for Metis and Tourism, Retail and Service Skill Development. More directly, HRSDC also provides support to the tourism sector through funding to the Canadian Tourism Human Resource Council (CTHRC). This funding supports projects such as the development of professional industry credentials, National Occupational Standards, and labour market information to help match skills with current and future needs in the sector. HRSDC will continue to provide programming to help all Canadians access the skills development and training needed to participate in the labour market, including the tourism sector.

Industry Canada (IC) / Federal Economic Development Initiative in Northern Ontario (FedNor)

IC works with Canadians throughout the economy and in all parts of the country to improve conditions for investment, stimulate innovation, increase Canada's share of global trade and build a fair, efficient and competitive marketplace.

FedNor is the lead federal economic driver in Northern and rural Ontario. It works with community partners, business leaders and other organizations, as both a facilitator and a catalyst to promote economic growth, diversification and job creation and to help build diversified and self-reliant communities.

National Capital Commission (NCC)

The NCC's mandate includes public activity programming that instils Canadians with pride and a sense of unity, helps Canada's National Capital Region serve as a gathering place for all Canadians, and helps Canadians and international visitors get to know Canada better.

Parks Canada

Parks Canada works to ensure Canada's historic and natural heritage is protected and, through a network of 43 national parks, 167 national historic sites, and 4 national marine conservation areas, invites Canadians and people around the world to engage in personal moments of inspiring discovery at Canada's treasured natural and historic places.

The sites entrusted to Parks Canada are jewels of the Canadian tourism industry that contribute directly to economic growth, provide exciting opportunities for Aboriginal people, rural areas and Northern Canada, and inspire tourists to become the guardians and promoters of our heritage.

Parks Canada offers visitors the opportunity to experience the history and nature of our vast country and understand what it means to be Canadian. These "unforgettable visitor experiences" are provided thanks to investments in infrastructure, facilities, programs and services. The experience Parks Canada offers visitors is the result of the visitor's personal interaction with the heritage site and its staff. The visitor's experience may include information on trip planning, before or during their travels, as well as welcome and orientation services, campgrounds, walking trails, other recreational services, public security measures, and ongoing ties after the visit. The efforts and resources that Parks Canada deploys to offer visitors a quality experience combine with other efforts within the framework of its mandate and aim to protect Canada's natural and heritage resources, as well as to inform and educate the public.

Statistics Canada

Statistics Canada gathers and prepares statistics on domestic and international travel, notably the number of travellers, expenditures and various characteristics of travel and travellers. This information is used by the Canadian Tourism Commission, Industry Canada, provincial/territorial tourism agencies, destination marketing bodies, tourism researchers and the tourism industry. Statistics Canada also collects and tabulates macroeconomic data on tourism, such as the value of tourism imports and exports, in order to calculate tourism's contribution to the GDP and its net incidence on the balance of payments.

Transportation, Infrastructure and Communities Portfolio

The Portfolio includes Transport Canada, Infrastructure Canada and 16 Crown corporations. It negotiates the divestiture of ports, airports and Seaway lands to local interests, operates airports and ports until their transfer, and operates federally owned remote airports and remote ports. It also administers airport, port (not including Canada Port Authorities), highway and bridge subsidy programs and ferry service contribution programs, performs landlord and monitoring functions for the department's ports, airports and air navigation systems and ferry terminal sites, and facilitates expanded international air services. The Portfolio's work supports the economy, the environment and the health of Canada's communities. Of the 16 Crown corporations in the Portfolio, many are important to tourism, such as the National Capital Commission, VIA Rail, the Royal Canadian Mint, various administrative bodies for bridges, the Old Port of Montreal and Marine Atlantic.

Transport Canada (TC), through its International Air Policy Directorate, manages air transport relations and negotiates bilateral air transport treaties, in collaboration with International Trade Canada, pursuant to Canada's Blue Sky policy. It is also responsible for the identification of priority countries for air transport negotiations and the development of negotiation mandates for the approval of the Minister of Transport (lead Minister) and the Minister of International Trade. In the context of these two responsibilities, it conducts consultations on behalf of the federal government. It also works with relevant departments and organizations to promote the efficient movement of passengers and cargo in Canadian airports (for instance, United States customs and immigration preclearance in Canadian airports).

In addition, Transport Canada maintains the Access to Travel (ATT) website, which provides a wealth of information on accessible transportation and travel across Canada with the aim of making accessible travel easier and more enjoyable. Sections of the ATT website contain information on transportation between Canadian cities, local transportation service providers, accessibility of airport terminals, travel resources and government policies. There is also a section for complaints, inquiries and user feedback.

As part of this portfolio, Infrastructure Canada plays a lead role in federal efforts to enhance Canada's public infrastructure, a key factor in achieving the Government of Canada's priorities of a stronger economy, a cleaner environment and more prosperous communities. The department coordinates various infrastructure initiatives under the Government of Canada's $33 billion Building Canada Plan and more recently managed key programs under the Economic Action Plan, including the Infrastructure Stimulus Fund. Infrastructure Canada works with provinces, territories, municipalities and other partners to support a wide range of infrastructure, from highways and roads to water and wastewater treatment, recreational facilities and museums. Under these programs, Infrastructure Canada also provides direct investments in tourism infrastructure, such as convention centres and exhibition spaces, and provides indirect support for tourism via investments in infrastructure that contribute to the attractiveness of communities as potential visitor destinations, such as major cultural facilities.

Finally, Infrastructure Canada is currently leading federal efforts to develop a long-term infrastructure plan beyond Building Canada and is engaging its key partners provinces, territories, the Federation of Canadian Municipalities and other stakeholders-in this process.

Western Economic Diversification (WD)

WD works to promote western innovation, business development and entrepreneurship, and community economic development.

Although WD does not operate programs that specifically aim to support the tourism industry in Western Canada, the organization does invest in tourism projects through a certain number of basic and supplemental programs. These investments have improved the tourism "product" in Western Canada, increased the number of tourism visits there, and provided employment opportunities to Westerners.

In addition to the departments and agencies whose spending is examined in this report, a number of other federal bodies play an essential role in the growth of Canada's tourism industry. Some organizations contribute financially to tourism, indirectly or through their policies that support the industry's development.

Agriculture and Agri-Food Canada (AAFC)

AAFC helps ensure the agriculture, agri-food and agri-based products industries can compete in domestic and international markets, deriving economic returns to the sector and the Canadian economy as a whole. Through its work, the Department strives to help the sector maximize its long-term profitability and competitiveness, while respecting the environment and the safety and security of Canada's food supply.

Through various programs, the Department supports farmers and agri-businesses in using a diversity of tools and approaches to increase their innovativeness, competitiveness and sustainability. One of these is tourism. Most notably, AAFC supports the co-branding of Canada as a supplier of high-quality food products and as a premier tourist destination due to its culinary excellence. Canada's Rural and Co-operatives Secretariat, which sits within AAFC, supports the co-operative sector in applying the co-operative business model to tourism development, as well as the development and promotion of tourism-related rural amenities that support the growth and resilience of rural and remote communities.

Different AAFC programs facilitate tourism industry growth by supporting a range of related initiatives, such as rural amenities inventories, agri-tourism land mapping, statistical research, agricultural science visitor attractions, and certain on-farm tourism-related activities.

Foreign Affairs and International Trade Canada (DFAIT)

DFAIT ensures that Canada's foreign policy reflects true Canadian values and advances Canada's national interests; strengthens rules-based trading arrangements to expand free and fair market access at bilateral, regional and global levels; and works with a range of partners inside and outside government to achieve increased economic opportunity and enhanced security for Canada and for Canadians at home and abroad.

DFAIT supports international tourism by organizing events that enhance Canada's brand image and by disseminating information about Canada.

DFAIT and Transport Canada work together to advance the Government of Canada's Blue Sky policy, which governs air transportation agreements.

Canada Border Services Agency (CBSA)

CBSA ensures the security and prosperity of Canada by managing the free and legitimate flow (access) of people and goods to Canada.

Canada Revenue Agency (CRA)

CRA administers tax laws for the Government of Canada and for most provinces and territories, as well as various social and economic benefit and incentive programs delivered through the tax system.

The CRA administers the Foreign Convention and Tour Incentive Program, which promotes Canadian tourism packages and encourages foreign conventions and conferences to be held in Canada.

Business Development Bank of Canada (BDC)

The BDC's mandate is to help create and develop Canadian businesses through financing, venture capital and consulting services, with a focus on small and medium-sized enterprises (SMEs).

The BDC finances many tourism businesses. As of March 31, 2011, the BDC had about $2 billion in financing invested in the tourism sector.

Citizenship and Immigration Canada (CIC)

CIC admits immigrants, foreign students, visitors and temporary workers who help Canada's social and economic growth; resettles, protects and provides a safe haven for refugees; helps newcomers adapt to Canadian society and become Canadian citizens; manages access to Canada to protect the security and health of Canadians and the integrity of Canadian laws; and helps Canadians and newcomers to participate fully in the economic, political, social and cultural life of the country.

Finance Canada

Finance Canada plans and prepares the federal government's budget, analyzes and designs tax policies, and develops rules and regulations for Canada's banks and other federally regulated financial institutions. It administers the transfer of federal funds to the provinces and territories, develops policies on international finance and helps design Canada's tariff policies. It also monitors economic and financial developments in Canada and provides policy advice on a wide range of economic issues.