In a remarkable display of resilience, Toronto’s tourism sector achieved record-breaking milestones in 2022, with 28.2 million visitors generating an astonishing $9.1 billion in spending, according to Destination Toronto. This surge contributed to a significant economic impact of nearly $13.5 billion for Canada’s largest city, highlighting its status as a premier global destination amidst evolving trade dynamics and economic uncertainties.
A Resilient Visitor Economy
Andrew Weir, the president and CEO of Destination Toronto, expressed pride in the city’s tourism achievements. He stated, “Against a backdrop of shifting trade policies, tariffs and economic uncertainty, Toronto solidified its position as a top global destination. Our visitor economy showed strong resilience, as Toronto has what travellers and meeting planners are seeking — compelling experiences paired with a warm welcome.”
The influx of visitors last year marked a significant milestone, with international arrivals emerging as the fastest-growing segment. Approximately 1.4 million international tourists visited Toronto, reflecting an 8% increase over the previous year. Notably, the U.K. and Germany were key contributors to this growth, with visitor numbers from these countries rising by 12% and 10%, respectively.
Domestic Travel on the Rise
While international visitors made notable gains, domestic tourism remained the largest segment, with 25 million Canadians choosing to explore their own country, an increase of 3%. This shift comes amidst a decline in Canadian travel to the U.S., suggesting a renewed interest in local travel experiences. Meanwhile, the U.S. market, which remains the second-largest source of visitors, saw a 6% decrease, resulting in 1.9 million American tourists venturing north.
Major events and conferences played a pivotal role in driving tourism success. Toronto hosted 74 significant meetings last year, attracting an estimated 378,000 delegates. This marked a staggering 51% year-over-year rise, generating an economic impact of $982 million.
Major Events Fuel Economic Growth
Destination Toronto highlighted the importance of these major events, stating, “Beyond direct spending by organizers and attendees, major meetings play a critical role in helping the city attract new investment, trade, and talent to its key economic sectors, such as life sciences, technology, AI, manufacturing, and finance.” The city is gearing up for more significant events, including hosting six games for the upcoming FIFA World Cup, which is expected to draw even more visitors and foster local celebrations.
Looking ahead, Destination Toronto has successfully secured new business, bringing in 70 major meetings and events that are anticipated to attract over 370,000 attendees and generate an estimated $973 million in economic impact in the coming years.
Why it Matters
The record-breaking tourist figures and economic impact are a testament to Toronto’s ability to adapt and thrive in a challenging global landscape. As the city gears up for major events like the FIFA World Cup, the implications extend beyond immediate financial gains. The continued growth in tourism not only strengthens Toronto’s economy but also enhances its reputation as a vibrant hub for international business and culture, paving the way for future opportunities and investment.
