Forecast: Travel Agency and Tour Operator Gross Value Added in Canada

The Travel Agency and Tour Operator sector in Canada demonstrated significant fluctuations over the past decade. The Gross Value Added (GVA) increased steadily from 2013 to 2019, growing from $2.81 billion in 2013 to $3.2 billion in 2019. However, the COVID-19 pandemic in 2020 caused a substantial decline, cutting the GVA nearly in half to $1.64 billion. Recovery began in 2021, and by 2022 the GVA nearly reached pre-pandemic levels at $2.96 billion. Post-pandemic resurgence continued with a notable increase of 12.61% year-on-year in 2023, resulting in a GVA of $3.33 billion that year.

The forecast for 2024 to 2028 suggests a moderate yet steady growth trajectory, with the GVA projected to rise from $3.38 billion in 2024 to $3.58 billion in 2028. This represents a five-year Compound Annual Growth Rate (CAGR) of 1.13%, highlighting consistent but modest growth in the sector moving forward.

Future trends to watch for include increasing digital transformation in travel services, shifts in consumer preferences towards sustainable tourism, and potential impacts of economic fluctuations on travel expenditures. The focus on personalized travel experiences and technological innovations such as AI-driven travel planning are likely to shape the industry's evolution.