Tourism generated $19.4 billion of revenue for all three levels of government
in Canada in 2006. This was up 4.8% from one year earlier and 29.4% from
2000.
For every dollar of tourism spending ($66.8 billion in 2006), governments
raised 29.1 cents, up from 27.9 cents in 2000.
Tourism accounted for 3.9% of government revenue, more than its 2.0% share
of overall Gross Domestic Product in 2006.
The federal government raised $9.1 billion through tourism in 2006, 3.9%
of its revenue. Provincial/territorial governments received $9.3 billion
from tourism, 4.4% of their revenue. Municipal governments collected $1.1
billion, 1.9% of their revenue.
For every dollar of tourism spending in 2006, the federal government raised
13.6 cents, the provincial/territorial governments took in 13.9 cents and
municipal governments received 1.6 cents.
Taxes on products, like the Goods and Services Tax and provincial sales
taxes, were the single largest source of tourism revenue for the federal
and provincial/territorial governments. These taxes accounted for $4.6 billion
for the federal government in 2006,50.9% of its revenue
from tourism. Provincial/territorial governments collected $5.7 billion,
61.1% of their tourism revenue, from this source.
Taxes on employment income and business profits were the second most important
source of tourism revenue for both the federal and provincial/territorial
governments. These income taxes brought in $2.7 billion for the federal government,
30.0% of its revenue from tourism. They brought in another $1.7 billion for
provincial/territorial governments, 18.8% of their revenues from tourism.
Other taxes on production, mainly property taxes, were the chief source
of tourism revenue for municipalities. Tourism generated $0.9 billion via
these taxes for municipal governments, 81.0% of their tourism revenue.