This study identifies investment data sources and links them to tourism by applying the methodology outlined in Umme Salma's paper Tourism Investment in Australia. The investment levels of three pilot industries (air transportation, accommodation and amusement) for the period 1999 to 2008 are calculated using each industry's tourism ratio and data from various Statistics Canada surveys. This tourism component of investment was added across all industries to derive an aggregate estimate for tourism investment or investment attributable to tourism.

The study also highlights several limitations to the Salma methodology. Ratios calculated in the Tourism Satellite Account are based on the direct effect of tourism spending. Unlike output, jobs or gross domestic product, investment is not a direct effect or immediate effect of tourism spending; it can be a secondary or subsequent round effect (i.e. indirect effect).  The validity of using direct effect ratios on an indirect phenomenon is open to question as a result. 

Focusing on tourism industries fails to give a complete picture of tourism investment in Canada. A large part of tourism spending is on goods and services produced by non-tourism industries; so tourism investment in non-tourism industries must be considered. Additionally, tourism investment by the public sector is excluded (i.e. as roads, national parks, or monuments).

Various options for further research are proposed. One option may be to calculate tourism ratios due to indirect effects; another may be to expand the Input Output asset detail using the asset detail found in the Capital Expenditure Survey.

Author:

Bogdan Buduru, Small Business and Tourism Branch, Industry Canada