Future of Ontario’s tourism industry to be decided in 2025

Ontario’s tourism industry is fighting to secure a stable foundation in 2025.

Earlier this month the Tourism Industry Association of Ontario (TIAO) launched its annual year-end event in Toronto, with the intent to diagnose and remedy issues within provincial tourism infrastructure.

Since the COVID-19 pandemic, Ontario’s tourism economy has struggled to return to its normal pace.

As a result, the TIAO fears that if federal officials do not implement the required amendments, the industry will collapse via underfunding and continuous wear and tear.

“One of the biggest challenges we have seen in Ontario over the last year is the concern that there hasn’t been enough consultation at a federal level,” Andrew Siegwart, CEO of the TIAO told INsauga.com.

As a result, Siegwart is trying to geat policymaking eyes on areas that need immediate repair, which include:

• Investment incentives that enable domestic and international attraction.
• Competitive event bids to help Ontario destinations secure more business.
• Support of Municipal Accommodation Tax regulation.
• Domestic workforce plans to connect underemployed Ontarians with opportunities within the tourism sector.

On top of all this, one component fuelling national discourse for the last year has also significantly jammed the inner workings of Ontario’s struggling tourism engine, — immigration policies.

According to Siegwart, recent federal actions curtailing international student intake will have lingering effects on Ontario’s tourism sector, as many of these students were poised to graduate from hospitality programs.

“That was a huge blow to the sector, these students were studying, working and preparing for careers in the tourism sector, which they thought would likely be a path to permanent residency. Additionally, due to other changes on a federal level, hospitality, tourism and culinary pathways have been excluded from post-graduate work permits,” says Siegwart.

These two new federal policies working in concert have left the tourism sector vulnerable, leaving authorities like Siegwart to apply as many economic band-aids as possible in the new year.

While getting Parliament Hill’s attention remains a priority, Siegwart remains confident that working with the Ford administration is a better pathway to permanent solutions.

Specifically,  by deciding how much access organizations like the TIAO have to the provincial piggy bank.

“British Columbia, Alberta and Quebec, significantly outspend Ontario in their provincial marketing efforts. So what we are suggesting, is that the province match the spending of the provinces that are our direct competitors,” says Siegwart.

While any movement surrounding this kind of spending remains to be seen, Siegwart is hopeful, as he believes the Ford administration has been consistently stepping up to bat for Ontario’s economic engine.

“At the provincial level, I think [Ford] is doing a really good job of charting a course for what is required economically, by making decisions that will bring some form of return on investment to the economy and the workforce,” says Siegwart.

Siegwart and his team are also keenly aware that the powers behind Ontario’s economy are preoccupied butting heads with U.S. President-elect Donald Trump.

Despite these interlocked horns, the TIAO remains unfazed, because no matter the political tension, as long as the Canadian dollar stays low, U.S. tourists will always come to Canada to get more bang for their buck.

As for the future, Siegwart is confident that tourism interests will remain in the spotlight, stating “It could be very easy to focus on some of the immediate concerns happening with our relationship with the United States. But, if you step back and take a bigger look at the foundations right now, incredible things are happening.”

Siegwart then referenced overhauls in tourism infrastructure, such as the expansion of the GO Transit line and the possibility of a high-speed rail system connecting Ontario and Quebec.

Siegwart concluded his optimism by stating, “When you see those kinds of investments that have a triple bottom line, those are good things and will remain a net positive for the visitor economy.”