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CATO Study Shows Strong Growth, High Employment for Tour Operators

Intrepid Travel

New research from the Canadian Association of Tour Operators (CATO) shows positive signs of growth among operators - a resurgence of "strong demand" since the COVID-19 pandemic, a rise in domestic tours and increased employment.

Consulting firm BDO carried out the study, looking at the economic impact of Canadian tour operators for 2024-2025. The survey covered revenue and expenditures, employment, and innovation.

A similar study was done in 2021, just after the pandemic hit.

As expected, data showed total revenue, employment, labour costs, and overall economic output among CATO members fell sharply in 2021 due to the pandemic. Since 2023, tour operators have reported a rebound in demand for tour packages, with modest but steady growth through 2025.

Jean Hébert, CATO executive director, said the results show “the remarkable resilience and adaptability of Canada’s tour operator sector."

"Despite economic uncertainty, shifting travel patterns, geopolitical challenges, and evolving consumer expectations, our members continue to grow, create jobs, invest in innovation, and contribute significantly to the Canadian economy," he added.

The findings showed an increase in CATO’s direct economic impact, up from $5.3 billion in 2023 to $6.1 billion in 2025. The total economic output over those same two years increased from nearly $9,2 billion to $9,9 billion, a 7.4% increase.

“Despite all the challenges and headwinds over the last 12-14 months, those are not only significant increases but they’re truly impressive,” said Brett Walker, Chair of the CATO board of directors.

Employment among CATO members has also increased, rising steadily from 21,824 (2023) to 25,869 (2024) and 29,104 (2025). Part-time employment has also seen a rise, up sharply from 189 (2023) to 2,018 (2024) and 2,312 (2025).

The study also highlighted the declines in revenues associated with travel from Canada to the US in 2025, anticipating the trend would continue, remaining well below pre-pandemic levels for many tour operators.

The US travel slump, covered extensively by Open Jaw, has fueled a rise in domestic tour packages within Canada.

Europe emerged in the findings as another popular alternative to US travel, with additional growth also noted across Mexico, the Caribbean, and Latin America. Other regions, such as Asia, South America, and the South Pacific, were generally described as stable over the period.

AI also got a mention in the study, although its adoption among tour operators "remains at an early stage, with impacts still emerging for many organizations." The technology is currently primarily viewed as a tool to improve operational efficiency and customer experience, although many organizations reported uncertainty around its reliability.

CATO members also highlighted the importance of sustainability, although its implementation varied across respondents. Some have established comprehensive programs, including formal policies, greenhouse gas reduction initiatives, B Corp certification, and dedicated sustainability teams, while others are still in the early stages of developing their approach.

Many operators also highlighted a commitment to responsible tourism through supporting local communities, implementing ethical wildlife practices, and using local vendors.

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