When the tourism dollars Canadians spend outside Canada exceed the tourism dollars foreign visitors spend in Canada, we have developed _____________.

Question

Quizplus · Accepted Answer

A travel deficit occurs when a country spends more on international travel than it earns from tourism within its own borders. This is often caused by leakage, which refers to the portion of tourism spending that leaves the host country's economy, such as when tourists purchase goods and services from foreign-owned businesses or when profits from tourism ventures are sent abroad. A negative multiplier effect also contributes to a travel deficit, as it occurs when tourism spending does not circulate through the local economy and create additional economic activity. A tourism revenue regenerator is not a commonly used term in the industry.

When the Tourism Dollars Canadians Spend Outside Canada Exceed the Tourism