Canadian data confirms: tourist taxes do not harm the visitor economy

Canada’s tourism sector is having a strong year. According to recent figures, visitor spending reached over 129 billion CAD in 2024, an increase of 3.6% compared to 2023. International spending rose even faster, up 8%, and hotel revenues in the last quarter of the year alone amounted to nearly 4.6 billion CAD. Forecasts suggest that by 2029, tourism spending could climb as high as 160 billion CAD.

These results come from provinces where tourist taxes are an established part of the system. British Columbia, Alberta, Ontario and Québec all apply levies on overnight stays, ranging from provincial sales taxes to municipal accommodation taxes and event-related surcharges.

A recurring point of debate

The figures provide another reminder of something we have long argued: taxing overnight stays is not, in itself, harmful to tourism. Visitor numbers and spending continue to rise in regions where tourist taxes are well-established. The Canadian example is not unique — across Europe and beyond we see the same pattern. What matters most is how the revenue is used. If tourist tax income is spent wisely, it can strengthen the local economy and community. That means investment in public services, infrastructure, and initiatives that improve quality of life for residents. It does not have to be limited to tourism marketing or projects targeted only at visitors.

Evidence for policymakers

For municipalities debating whether tourist taxes might drive visitors away, Canada provides clear evidence to the contrary. In Toronto, for example, the accommodation tax has increased, yet visitor spending also rose — up 7% compared to pre-pandemic levels. Québec City reported a 10% rise in spending despite some of the highest combined lodging taxes in the country. These examples show that well-designed tourist taxes can support both residents and the visitor economy at the same time.

The Trippz view

At Trippz, we support transparent and fair tourist tax systems. Taxes on overnight stays can add an important contribution to manage the sustainability of any municipality’s budget. If you have a lot of visitors, there’s more strain put on general facilities, like infrastructure, public green, waste management and so on. Additional revenue from a form of tourist tax can add to the improvement of local life, which will always benefit visitors as well. Canada’s latest results add to a growing body of evidence: tourist taxes are not a threat to tourism. They are part of a sensible approach that makes destinations stronger for everyone.