Toronto Tourism 2023: $8.4 Billion Boost
A recent study reveals that visitors injected $8.4 billion into Toronto’s economy in 2023, although tourism numbers remain below pre-pandemic levels. According to Tourism Economics, 26.5 million visitors spent heavily on hotels, restaurants, and transportation. Despite this significant economic contribution, the city has yet to fully recover to its 2019 peak of 28 million visitors, as reported by Destination Toronto.
In 2023, Canadian visitors made up 88% of the tourist population, with nearly 7% from the U.S. and 4.5% from overseas. While spending levels slightly surpassed those of 2019, much of this increase is attributed to inflation, explained Tariq Khan, the report’s author. “Spending is up, but it’s largely due to higher costs rather than increased visitor numbers,” Khan said.
Growth in the tourism sector appears to be slowing. According to Destination Canada CEO Andrew Weir, hotel bookings in May fell compared to the previous year, signaling a potential pull-back by visitors this summer. “The recovery is still far from complete and remains uneven,” Weir noted.
One event that may help boost tourism is Taylor Swift’s six-night run at the Rogers Centre in November.
Hotel reservations for the month have already surged by 300% compared to last year. “Taylor Swift’s concerts could spark a new era for Toronto tourism,” Weir said.
Despite the excitement surrounding major events, challenges persist. Inflation and higher interest rates are squeezing family budgets, resulting in reduced discretionary spending on travel. Additionally, a significant drop in visitors from China has impacted tourism numbers. In 2019, over 300,000 Chinese tourists visited Toronto, but China has not added Canada to its list of approved travel destinations for tour groups.
Corporate tourism, including trade conventions and business travel, has yet to rebound fully. In 2023, Destination Toronto facilitated 71 major conferences and events, attracting 290,000 business delegates who spent about $400 million. This is a significant drop from the $800 million spent by 100-plus conferences in 2018.
