TORONTO — Canadian tour operators are well on their way to post-pandemic recovery, says CATO (Canadian Association of Tour Operators), which has just released results from its 2023 Economic Impact Analysis (EIA).

The new report follows a first analysis done in 2021 in the midst of the COVID-19 pandemic. This second study, conducted by consulting firm BDO, differs from the first in that the 2021 study included members from ATOQ-Association des tours opérateurs du Québec (ATOQ); the 2023 report contains results only from CATO members, as the response rate from ATOQ was deemed not statistically significant by BDO. 

The 2023 analysis found that between 2020 and 2021, employment and labour costs directly supported by tour operators who responded to the survey decreased significantly. These tour operators also experienced a 94.6% decrease of economic output. Not surprisingly, the analysis also found an increase in employment, labour income and economic output from 2021 to 2023 from survey respondents.

The total economic output for 2020 was $5.4 billion, then down to $291 million in 2021, and back up to $8.5 billion in 2023, an increase of 57% from 2020.

“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 USTOA (United States Tour Operators Association) members in their 2022 year-end economic impact analysis. That’s impressive!

“While there may not be any true comparison between the two analysis, one this is for sure: with a market population of one-tenth the United States, CATO members are generating many multiples more than one-tenth of the revenue of our U.S. counterparts.”

Other notable findings from the 2023 EIA include:

• The outputs estimated by the model are direct and indirect impacts on employment, labour income and social and economic contributions.
• As the travel restrictions were lifted, the increased demand for travel enabled CATO members who responded to the survey to increase total full-time equivalent staff positions by 37% from 2020.
• Direct full-time employment in 2020 was $2,571, which has increased to 3,702 in 2023.
• Of the 3,702 direct full-time positions reported in 2023, 72% (or 2,675) were held by women, an increase of 46.8% from 2020.
• 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 $222.9 million in 2023, from $161.5 million in 2020.
• Total Direct and Indirect Labour Income was at $864 million in 2020, down to $145 million in 2021, and up to $1.33 billion in 2023, an increase of 53% from 2020.
• Total sales revenue of $9.8 billion was reported in 2023.