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  • This study provides estimates of the government revenue directly attributable to tourism updated to 2007 and revised for 2000 to 2006.
  • With this update, the amounts attributable to tourism spending by non-residents (i.e., tourism exports) and by residents (i.e., tourism domestic demand) have been estimated and are presented separately for the first time.
  • In addition, the classifications of industries and commodities used in the study have been harmonized with those of the Tourism Satellite Account and the National Tourism Indicators to improve the estimates and to facilitate statistical comparisons.
  • According to the study, tourism generated $19.7 billion of revenue for all three levels of government combined in Canada in 2007. Spending by Canadians accounted for three out of every four dollars taken in, while one in four dollars came from international visitors to Canada.
  • Government revenue from tourism was up 4.3% in 2007 from one year earlier, driven by higher revenues from domestic tourism spending. The revenue attributable to tourism exports was down 0.6%.
  • Exports accounted for 24% of the revenue attributable to tourism at the federal level in 2007 compared to 27% at the provincial/territorial level. Some 30% of the tourism revenue taken in by municipal governments was attributable to spending by international visitors.
  • For every $100 of tourism spending in 2007, the federal government raised $13.20, the provincial/territorial governments took in $12.91 and municipal governments received $1.63.
  • International visitors generated more revenue to government on a per $100 of spending basis, $31.58 compared to $26.61 for Canadians. On average, governments raised $27.75 for every $100 of tourism spending, down from $28.23 in the previous year.
  • Taxes on products sold to final consumers, 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 $4.7 billion for the federal government in 2007, 50% of its revenue from tourism. Provincial/ territorial governments collected $5.5 billion, 60% 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 $3.0 billion for the federal government and another $1.9 billion for provincial/territorial governments.
  • Taxes on products (final sales) due directly to tourism rose 2.7% in 2007, the second consecutive year of weak gains, following the GST reduction on 1st July 2006. Income taxes directly attributable to tourism were up strongly in 2007 (+9.4%), reflecting growth in both personal and corporate incomes and associated taxes.
  • Other taxes on production and intermediate inputs, were the chief source of tourism revenue for municipalities. Tourism generated $0.9 billion via these taxes, mainly property taxes, for municipal governments, 78% of their tourism revenue.