How does the Canada Tourism Industry let small towns down?

For some time now, and I am talking decades, I have worked with small towns. During this time I have witnessed, seen and heard how the Canadian tourism industry is not adequately supporting small towns, rural areas, and lesser-known destinations wanting to grow tourism. While there are efforts to promote tourism in these regions, I am talking minimal efforts, the broader tourism industry — including government agencies, large tourism monopolies, and industry organizations — have fallen short in helping small towns fully benefit from tourism.

1. Over emphasis on Big Cities and Major Attractions

The Canadian tourism industry, especially national and regional marketing campaigns, often focuses on well-known urban centers like Vancouver, Toronto, Montreal, and Ottawa, as well as major tourist destinations such as Banff and Niagara Falls. While these destinations are undeniably important to Canada's tourism sector, the overwhelming focus on these hotspots can overshadow the unique offerings of small towns and rural regions. Many small towns feel neglected or invisible in these broader marketing campaigns, which often prioritize attracting international tourists (those with a high spending threshold) to the most famous landmarks. This leaves small towns to fend for themselves.

2. Limited Funding and Resources for Small-Town Tourism Initiatives

Canadian small towns and rural communities often lack the funding, time, infrastructure, and resources to develop, promote and grow tourism in a competitive way. Unlike urban areas with established tourism marketing budgets, smaller communities struggle to create or sustain tourism programs. While provincial and federal governments may offer grants or funding opportunities, small towns may not have the capacity to navigate complex application processes or may miss out on opportunities due to limited staff or expertise. Additionally, the funding that is available is often directed toward larger, more developed destinations, leaving smaller communities behind.

3. Lack of Support for Local Businesses

Canadian Small towns frequently rely on local businesses — including family-run hotels, restaurants, and attractions — to support tourism growth. However, these businesses often lack the marketing reach and digital presence to compete with larger, more established players in the industry. While destination marketing organizations (DMOs) may help to promote tourism in general, many small-town businesses struggle to be visible on platforms like travel websites, booking engines, or social media, which are dominated by bigger brands with larger budgets and marketing efforts created from corporate offices. This leaves smaller operators to fend for themselves without the visibility or support needed to thrive in a very crowded industry.

4. Tourism Infrastructure Gaps

In many small towns, tourism infrastructure can be lacking or underdeveloped. This includes everything from adequate transportation services (e.g., public transit, lack of direct flights) to basic amenities like high-speed internet, cell service or accessible accommodations. Small towns may also face challenges with developing attractions or events that can compete with those in larger cities. Without the right investment in infrastructure, these towns struggle to cater to growing numbers of tourists or provide high-quality, comfortable experiences. In contrast, larger destinations have the resources and support to continually improve and upgrade their tourism infrastructure.

5. Lack of Asset Acknowledgment and Skill Development

Many small communities across Canada fail to fully realize their tourism potential due to a combination of limited resources, a lack of awareness, and insufficient marketing strategies. Often, these communities overlook the unique assets they possess—whether it's stunning natural landscapes, rich cultural heritage, or distinctive local experiences—because they don’t have the direction, tools or expertise to effectively promote them. Furthermore, many small communities may not recognize the changing dynamics of travel, where today’s tourists are increasingly seeking authentic, off-the-beaten-path experiences, something small towns have in abundance. This missed opportunity can leave these regions economically vulnerable, while more developed destinations capture the attention of travelers. By investing in tourism education, targeted marketing, and community engagement, these towns can harness their full potential and create sustainable, locally-driven tourism economies.

6. Lack of Tailored Marketing and Promotion

National and provincial tourism campaigns often focus on broad demographics or generic travel experiences, rather than tailoring marketing efforts to the unique offerings of small towns. For example, a small rural town with Indigenous heritage, local history, or a particular artisanal craft may not get the visibility it deserves because national campaigns often target mass-market experiences. Small towns might also lack the skills and resources to create their own specialized campaigns that speak to specific interests, such as adventure tourism, culinary experiences, or eco-tourism. It seems every year it is the same destinations marketed over and over again.

7. Ghosted by Regional Tourism Associations

Regional tourism associations often fail to visit or engage with small towns when developing tourism strategies, focusing instead on more prominent destinations or urban centers that already attract large numbers of visitors. This lack of attention to smaller, rural communities can result in missed opportunities for local tourism growth. Small towns typically don’t have the resources or infrastructure to advocate for themselves effectively, leaving them overlooked in regional tourism planning. As a result, the unique attractions and experiences these towns offer — from local festivals and outdoor activities to Indigenous cultural heritage and historic landmarks — remain underutilized and underpromoted. Without support from regional tourism associations, small towns struggle to integrate into broader regional or provincial marketing campaigns, leading to an imbalance where tourism development focuses on established hotspots rather than fostering diverse, sustainable growth across all communities. A more inclusive approach, where regional tourism bodies actively visit, collaborate with, and understand the needs of small towns, could help unlock untapped tourism potential and drive more equitable regional development.

8. Corporate Canada Calls the Shots in Tourism

Regional tourism association resources often end up being dominated by large, corporate groups, leaving smaller, independent operators and local businesses at a disadvantage. These associations, which are intended to promote tourism across diverse regions, frequently allocate a disproportionate amount of their budgets and marketing efforts to well-established hotels, resorts, and major attractions that have the financial capacity to invest in extensive promotional campaigns. As a result, small businesses, family-run inns, boutique shops, and unique local experiences in rural areas are often sidelined. This corporate bias can lead to a tourism ecosystem that focuses on volume rather than authenticity, where travelers are funneled toward the same big-name destinations and brands year after year. Smaller operators often struggle to access the same promotional opportunities, networking events, or funding programs available to their larger counterparts, leaving them without the tools or exposure to compete in a market that’s increasingly driven by industry partnerships. To ensure a more inclusive and balanced tourism strategy, regional tourism associations need to prioritize the inclusion of smaller, independent businesses and foster a more diverse representation of local tourism experiences.

9. Tourism Programs Built for Urban Centres

Tourism marketing programs are often built around urban centers because these cities have the resources, infrastructure, and financial backing to launch large-scale campaigns. They benefit from substantial funding, dedicated staff, and access to specialized skills in digital marketing, media relations, and brand development—resources that many small towns simply do not have. In larger cities, tourism organizations can hire professional marketers, designers, and analysts to create polished promotional materials, manage social media, and develop sophisticated advertising strategies. In contrast, small towns often struggle to allocate the time, staff, and funding required to develop and execute their own marketing campaigns. Without the expertise or budget to create compelling content, develop an online presence, or launch outreach programs, smaller communities find it challenging to compete for attention in an industry that is increasingly driven by high-quality, high-budget marketing efforts. This disparity in resources contributes to the continued focus on urban tourism, leaving small towns underrepresented and unable to fully capitalize on their tourism potential.

What Could Be Done to Improve Small-Town Tourism?

While challenges exist, there are ways to better support small towns in the tourism industry:

• Targeted Marketing: National and provincial tourism agencies could create more targeted campaigns that highlight the unique offerings of small towns, including cultural heritage, outdoor activities, and local experiences.
• Infrastructure Investment: Increased government investment in infrastructure (such as improved transport options and digital connectivity) could help small towns compete for tourism dollars.
• Sustainable Tourism Development: Emphasizing sustainable tourism practices that focus on environmental protection and community well-being would ensure that tourism growth benefits small towns without overwhelming them.
• Support for Local Businesses: Small-town businesses could be better integrated into larger tourism marketing efforts, including providing training in digital marketing, branding, and social media.
• Provide Tourism Programs: Provide tourism marketing programs for online marketing that small towns can afford, maintain and grow. Small towns require programs which involve the community and take less time, little funds, teach skills and do not require more staff. Online marketing programs like the award-winning "Experience Community Program".

In summary, the Canadian tourism industry, while successful in many areas, has room for improvement when it comes to supporting small towns. By creating more inclusive, sustainable, and balanced tourism strategies, Canada could unlock the full potential of its smaller, rural, and Indigenous communities and ensure that they share in the benefits of the country’s tourism economy.

That said, the potential is in the billions. Rural and small-town tourism accounts for around 20-30% of Canada's tourism activity with little support nor help. The Tourism Industry Association of Canada (TIAC) and other industry organizations have indicated that small-town and rural tourism is an underutilized sector with significant untapped potential. Talk is cheap.