Destination Canada’s new way to measure tourism’s impact

Destination Canada’s new way to measure tourism’s profound impact

Insights — 04 March 2025
by Tim Hasid, Director of Destination Strategy

Destination Canada’s Tourism’s Wealth and Wellbeing Index is rethinking the true value of tourism at a pivotal time—for citizens, for communities and for the industry.

Destination Canada’s Tourism’s Wealth and Wellbeing Index is rethinking the true value of tourism at a pivotal time—for citizens, for communities and for the industry.

Tourism is no longer just an economic driver—it is an ecosystem that fuels quality of life, community well-being, and long-term resilience. Traditional performance indicators, such as visitor spending and hotel occupancy, therefore tell only part of the story. 

Tourism’s Wealth & Wellbeing Index was developed by Destination Canada—in collaboration with Resonance Consultancy—as part of its 2030 Strategy, and presents a paradigm shift. It redefines success by evaluating tourism’s impact through six interconnected dimensions: Economy, Employment, Enablement, Environment, Engagement, and Experience—the six Es.

Destination Canada’s Tourism’s Wealth and Wellbeing Index is rethinking the true value of tourism at a pivotal time—for citizens, for communities and for the industry.

Tourism's Wealth & Wellbeing Index measures success by evaluating tourism’s impact through six interconnected dimensions across 100+ indicators.

Released mid February 2025, this first-of-its-kind initiative moves beyond traditional financial metrics to provide a holistic framework that aligns with international standards, such as the United Nations’ Sustainable Development Goals (SDGs) and the Measuring Sustainability in Tourism (MST) framework. By incorporating more than 100 indicators across multiple dimensions, the Index sets a new benchmark for how Canada, and destinations of all sizes, can measure their tourism sector’s contributions to long-term social, environmental, and economic health.

Since its launch, there has been growing global interest in adapting the Wealth & Wellbeing Index for other countries and regions, as leaders recognize the need for data-driven decision-making that balances economic vitality with social equity and environmental responsibility. As destinations seek to create more resilient tourism models, this framework is increasingly seen as a blueprint for ensuring tourism remains a regenerative force rather than an extractive industry.

As global tourism rebounds, destinations have an opportunity to apply this framework to measure the true impact of tourism and design a visitor economy that benefits all stakeholders. But why save all the fun for the Canadian tourism industry, right?

Below is a practical blueprint for how cities, regions, and countries can integrate the Wealth & Wellbeing Index principles into their tourism and economic development strategies.

Destination Canada’s Tourism’s Wealth and Wellbeing Index is rethinking the true value of tourism at a pivotal time—for citizens, for communities and for the industry.

PHOTO: Destination Canada and Tourism's Wealth & Wellbeing Index

1. Economy: Beyond GDP—Maximizing Local Impact

The Economy dimension of the Wealth & Wellbeing Index evaluates how tourism contributes to financial resilience, business diversity, and investment in a destination. It moves beyond simply measuring visitor spending and focuses on how tourism revenue circulates through local supply chains, creates business opportunities, and attracts responsible investment. This pillar helps tourism leaders ensure that economic benefits extend beyond hotels and attractions, fostering inclusive economic growth that supports long-term prosperity for residents and entrepreneurs alike.

How to Apply It:

  • Diversify Revenue Streams: Move beyond direct visitor spending and track the multiplier effects of tourism on local supply chains, retail, and real estate. Encourage the growth of local businesses that cater to both visitors and residents.
  • Support Local Entrepreneurs: Create funding mechanisms and training programs to help small tourism enterprises scale, particularly those owned by women, immigrants, and underrepresented groups.
  • Attract Sustainable Investment: Work with investors to align tourism-related developments with long-term community needs. Prioritize projects that contribute to local economic resilience rather than extractive tourism models.

Key Takeaway:

Destinations should measure success not just in arrivals and spending, but in how tourism revenue circulates within the local economy, creates quality jobs, and fosters inclusive business ownership.

Destination Canada’s Tourism’s Wealth and Wellbeing Index is rethinking the true value of tourism at a pivotal time—for citizens, for communities and for the industry.

PHOTO: Destination Canada and Tourism's Wealth & Wellbeing Index

2. Employment: Elevating Tourism Careers & Workforce Equity

Employment in tourism is more than just job creation—it is about building a sustainable workforce, fostering upward mobility, and ensuring inclusivity. The Index tracks tourism employment diversity, industry attractiveness, and job quality to help destinations create well-paying, stable careers rather than seasonal, low-wage roles. Leaders must invest in workforce development programs, improve access to training, and ensure equitable hiring practices to make tourism an appealing long-term career choice that benefits both individuals and the community.

How to Apply It:

  • Invest in Workforce Development: Establish training programs in partnership with local educational institutions to develop skills in hospitality, digital services, and sustainable tourism.
  • Improve Wage Equity: Advocate for policies ensuring that tourism jobs provide livable wages and career advancement opportunities, reducing reliance on seasonal or precarious work.
  • Track Diversity & Inclusion: Ensure underrepresented communities have access to leadership roles in the tourism sector by implementing inclusive hiring initiatives and mentorship programs.

Key Takeaway:

A thriving tourism industry depends on a well-trained, well-paid, and diverse workforce. Destinations must ensure that the jobs created through tourism are sustainable, fulfilling, and contribute to economic mobility.

Destination Canada’s Tourism’s Wealth and Wellbeing Index is rethinking the true value of tourism at a pivotal time—for citizens, for communities and for the industry.

PHOTO: Destination Canada and Tourism's Wealth & Wellbeing Index

3. Enablement: Strengthening Infrastructure for Visitors & Residents

Enablement assesses a destination’s ability to support both tourism and resident well-being through physical and digital infrastructure. This includes transportation connectivity, public spaces,, and essential services that enhance visitor experience while improving the quality of life for residents. A well-enabled destination attracts investment, facilitates accessibility, and fosters inclusive growth. Tourism leaders must prioritize infrastructure investments that serve both visitors and communities, ensuring that development enhances a destination’s long-term livability.

How to Apply It:

  • Enhance Multi-Modal Connectivity: Invest in seamless transportation systems—air, rail, public transit, and bike-friendly routes—that benefit both tourists and residents.
  • Expand Digital Infrastructure: Improve Wi-Fi access, digital wayfinding, and smart city applications to enhance visitor experience and accessibility.
  • Ensure Equitable Development: Prioritize tourism investments that improve resident quality of life, such as shared public spaces, affordable housing, and inclusive design.

Key Takeaway:

Tourism should be a catalyst for upgrading essential infrastructure that enhances the livability of destinations, not just for visitors, but for the communities that host them.

Destination Canada’s Tourism’s Wealth and Wellbeing Index is rethinking the true value of tourism at a pivotal time—for citizens, for communities and for the industry.

PHOTO: Destination Canada and Tourism's Wealth & Wellbeing Index

4. Engagement: Strengthening Community & Cultural Identity

Engagement measures how well a destination integrates tourism with local culture and community priorities. It examines public sentiment, cultural representation, and Indigenous engagement, ensuring that tourism supports rather than disrupts local traditions. Community-driven tourism fosters cultural preservation, social cohesion, and shared prosperity. Leaders must work closely with residents and cultural organizations to create authentic, respectful, and locally led tourism experiences that benefit both visitors and host communities.

How to Apply It:

  • Encourage Community Ownership: Foster resident engagement in tourism planning to ensure developments align with local values and needs.
  • Preserve & Promote Indigenous and Local Cultures: Work with Indigenous communities and cultural organizations to create authentic, community-led experiences.
  • Build Inclusive Destination Narratives: Ensure marketing and storytelling reflect diverse histories and voices, avoiding over-commercialization of culture.

Key Takeaway:

Tourism is most successful when it honors and strengthens the cultural fabric of a place, creating deeper connections between visitors and residents.

Destination Canada’s Tourism’s Wealth and Wellbeing Index is rethinking the true value of tourism at a pivotal time—for citizens, for communities and for the industry.

PHOTO: Destination Canada and Tourism's Wealth & Wellbeing Index

5. Environment: Leading in Regenerative Tourism

The Environment pillar examines how tourism interacts with and impacts natural ecosystems. It evaluates greenhouse gas emissions, conservation efforts, and sustainability policies to guide responsible development. Tourism leaders must adopt regenerative tourism principles, ensuring that tourism activities contribute to ecosystem restoration, not depletion. By integrating sustainable infrastructure, promoting eco-friendly businesses, and aligning with global climate action goals, destinations can reduce tourism’s footprint while enhancing biodiversity and environmental resilience.

How to Apply It:

  • Measure & Reduce Carbon Footprints: Implement tools to track tourism-related emissions and support initiatives like low-carbon accommodations, green transportation, and circular economy business models.
  • Protect Natural & Cultural Assets: Develop conservation-driven tourism policies that balance visitor access with ecosystem preservation.
  • Support Local Sustainability Efforts: Partner with businesses that prioritize zero-waste operations, renewable energy, and responsible sourcing.

Key Takeaway:

A future-focused tourism strategy must align with global sustainability goals, ensuring destinations remain vibrant and ecologically sound for future generations.

Destination Canada’s Tourism’s Wealth and Wellbeing Index is rethinking the true value of tourism at a pivotal time—for citizens, for communities and for the industry.

PHOTO: Destination Canada and Tourism's Wealth & Wellbeing Index

6. Experience: Designing Meaningful & Transformative Visitor Journeys

Experience focuses on the quality, uniqueness, and emotional impact of a destination’s tourism offerings. It evaluates visitor satisfaction, brand perception, and experiential authenticity, helping destinations attract highly engaged guests—those who not only travel often and spend more, but importantly, align with a destination’s values and deeply connect with its brand. Tourism leaders must shift from volume-based models to value-driven strategies, prioritizing personalized, immersive experiences that encourage longer stays, deeper cultural exchange, and repeat visits. A well-crafted visitor experience drives economic sustainability and enhances destination competitiveness.

How to Apply It:

  • Emphasize Quality Over Quantity: Shift from high-volume tourism to high-value experiences that generate greater economic benefits with lower environmental impact.
  • Enhance the Visitor Experience Through Data: Use digital insights and feedback loops to improve services, personalize experiences, and streamline destination management.
  • Promote Year-Round Tourism: Develop diverse seasonal offerings to avoid overcrowding and support steady employment in the tourism sector.

Key Takeaway:

The goal is not just to attract visitors, but to deliver experiences that leave lasting positive impressions, encourage repeat visitation, and contribute to destination loyalty.

Ready to Index the Future of Destination Stewardship Yourself?

Destinations that embrace the Wealth & Wellbeing Index framework will position themselves as leaders in sustainable, inclusive, and high-value tourism. By integrating economic, social, and environmental priorities into tourism strategy, cities, regions, and countries can build a visitor economy while enhancing the lives of both residents and visitors 

The time to act is now. Tourism’s future lies in holistic, data-driven decision-making that prioritizes not just growth, but shared prosperity for everyone.

To learn more about how the Wealth & Wellbeing Index is shaping the future of tourism in Canada access the Canadian Tourism Data Collective.

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