Transform Hospitality and Tourism with futuristic tech from Ontario
A bright future for sustainable tourism and tech
The global Hospitality and Tourism industry faced a significant setback in 2020 due to COVID-19. Travel restrictions led to a 42% drop in the industry’s revenue. Hospitality, which includes services like hotel accommodations and dining, is a major economic contributor. By 2023, the industry’s value reached US $4.7 trillion and is expected to grow to US $5.8 trillion by 2027.
With advances in technology, digitization of travel planning has become the norm. Companies like Booking Holdings and Expedia Group dominate this online market. VR, AR & AI are also promising an exciting future for travel and tourism. facial recognition check-ins, personalized travel, bot booking guides and contactless payments have the potential to make the hospitality industry more efficient and customized.
Environmental concerns are also reshaping travel preferences. A 2019 United Nations report, Transport Related CO2 Emissions of the Tourism Sector highlighted tourism’s impact on climate change. Surveys from 2021 indicate a strong interest in sustainable travel, with 83% of respondents emphasizing its importance. Additionally, 81% expressed an interest in eco-friendly accommodations in the near future.
Welcoming the world, every day
Despite the pandemic’s impact on Canadian Hospitality and Tourism during 2020-21, the industry has shown resilience. Q2 2022 marked a robust revival in the hotel domain, with occupancy nearing 2019 statistics.
In the first quarter of 2023, Canada has already seen a tourism spend of CA $20.8 billion, a 2.6% growth from the last quarter, and a CA $15.6 billion domestic tourism spending driven by a 3.5% surge. The most substantial contributions to this growth came from passenger air transport, food and beverage services, and accommodation services.
The trends driving the future of Canada’s Hospitality and Tourism industry are sustainable tourism, technology and innovation, and focussing on niche markets.
The Federal Tourism Growth Strategy, announced in Budget 2023, suggests investments of upwards of CA $150 million to foster growth in the Canadian tourism domain. This includes an allocation of CA $108 million over three years to the Regional Development Agencies to assist communities, small businesses, and non-profits in initiating local projects and events.
A further CA $50 million is also to be provided to Destination Canada to draw international conventions, conferences, and events to the country.
42.7% of all tourists to Canada choose Ontario as their destination
Throughout 2023, Ontario welcomed 12.6 million tourists to the province. 62.2% of Ontario’s tourism income comes from within Ontario, 13.7% from the US, 15.9% from overseas, and 8.3% from other Canadian provinces. This trend is also fortified by the ‘staycation’ domestic market that is thriving currently. Ontario’s Staycation Tax Credit encourages locals to continue travelling within their home province.
Ontario generated CA $36.8 billion in annual economic activity from the tourism industry, employing 395,000 people.
With Hospitality and Tourism being a pillar of the Canadian economy, there are a multitude of educational degrees and programs available to match requirements. Ontario is home to 47 universities providing a future-proof pipeline of qualified people.
Additionally, if you’re looking to build tech products for the Hospitality and Tourism industry in Ontario, you can benefit from being located in the second largest tech cluster in North America, 48% of Canada’s IT professionals reside here. The abundance of tech workers in this region is nearly equivalent to that of New York City. At its current growth rates, the Toronto – Waterloo corridor is set to surpass New York City in tech workforce numbers within the next few years.
Canada’s trade agreements cover markets valued at over US $50 trillion with access to 1.7 billion consumers. Canada has free trade agreements with the largest manufacturing markets in the world: the United States (USMCA), the European Union (CETA) and Asia-Pacific (CPTPP).
Your business can have access to 187 million consumers within a day’s drive of the Greater Toronto Area. Ontario has 4 international and 300 regional airports, 250,000 km of roads and highways, a dozen border crossings and the 6th most internationally connected airport in the world.
See all of our programs and find out how TBDC can maximize the potential in your Hospitality and Tourism business.
of all visits to Canada
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in annual economic activity
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most internationally connected airport
Funding, Resources and Organizations
Using the Business Benefit Finder, you can find many more government grants and incentives relevant to your tech startup.
is an association that serves all hotels, motels, and resorts in Canada.
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is a nationwide, non-profit organization championing Canada’s vibrant and varied foodservice sector. Visit Site
advocates for tourism at the national level, championing policies, programs, and activities that foster the industry’s growth and evolution. Visit Site
is a Canada wide organization that aims to build a world-leading tourism workforce. Visit Site
