The Canadian Association of Tour Operators (CATO) has released a study of the economic impact of its members for 2023. It reveals a much brighter picture of the industry than the previous one conducted in 2021, which assessed the situation following the COVID-19 pandemic.
CATO once again commissioned consulting firm BDO to carry out the study. 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.
In 2020, the total economic output by Canadian tour operators was assessed at $5.4 billion. That number plummeted nearly 95% to $291M in 2021, but in 2023 it shot back up to $8.5 billion, an increase of 57% from 2020.
Not surprisingly, the new assessment found an increase in employment, labour income and economic output from 2021 to 2023.
Canadian Association of Tour Operators Chair Brett Walker. (Photo Credit: Canadian Association of Tour Operators)
“Congratulations to all CATO members for their hard work in the recovery following the economic disaster caused by the COVID-19 pandemic in 2021,” said 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 United States Tour Operators Association(USTOA) members in their 2022 year-end economic impact analysis. That’s impressive.”
Walker added: “While there may not be any true comparison between the two analyses, 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 U.S. counterparts.”
Key highlights of the 2023 CATO Economic Impact Analysis (EIA) include:
· Total sales revenue of $9.8 billion reported in 2023.
· 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.
· Of the 3,702 direct full-time positions reported in 2023, 72% or 2,675 were held by women.
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