The Time Is Now to Unlock the Power of Tourism in Small and Rural Communities

Tourism has long been considered the cherry on top of a local economy. It is nice to have, but not essential. That thinking is outdated. Today, tourism can and should be the engine under the hood. It quietly powers job creation, small business growth, infrastructure improvements, and cultural revitalization.
And the timing could not be better. Amid ongoing US-Canada trade tensions and rising travel costs, more Canadians are staying home. They are choosing special, meaningful local experiences over expensive trips abroad. They are skipping US destinations and rediscovering what is in our own backyards.
For small and rural communities, this presents a powerful opportunity. Tourism is not a side hustle. It is a strategic economic tool. Here is how.
1 – Tourism Injects New Money into the Local Economy
Unlike many sectors that recycle the same local dollars, tourism brings in fresh, external money. When someone visits a town, they are spending income earned elsewhere. That spending trickles down to restaurants, hotels, gas stations, gift shops, tourism operators, and even the local farmers’ market.
Example: A town hosting an annual festival that attracts 5,000 visitors could see $500,000 injected into the local economy in a single weekend, if each visitor spends just $100.
That money circulates through the community, spurring more growth and investment.
2 – Tourism Fuels Diverse Employment Opportunities
Tourism supports a wide range of jobs:
- Direct (hotels, tour guides, restaurants)
- Indirect (construction, supply chains)
Critics often point out that many of these roles are entry-level or seasonal. But that is also their strength. They provide flexible work for students, newcomers, and part-time workers.
With the right planning, tourism can also support long-term careers in marketing, destination development, event management, and more.
In 2023, tourism supported approximately 692,000 jobs and contributed $32.8 billion in labour income across Canada. Despite this, the industry still faced a 6.2% job vacancy rate, showing the ongoing demand for talent and the sector’s growth potential. (Source: Tourism Data Collective)
3 – It Revitalizes Infrastructure and Public Spaces
When communities invest in tourism, they often end up improving amenities for everyone. This includes not just visitors. Think new trails, improved waterfronts, public washrooms, signage, and beautification projects. These improvements elevate quality of life for residents and boost civic pride.
Tourism also gives communities a compelling reason to preserve and showcase their heritage, landscapes, and culture. These are assets that are often underappreciated by locals until seen through a visitor’s eyes.
4 – It Sparks Local Entrepreneurship
Tourism lowers the barrier to entry for small business creation. You do not need a venture capital fund to start a kayak rental business, open a bed & breakfast, or run a local art tour. All you need is a good idea and a connection to place.
Supporting tourism fosters a healthy entrepreneurial ecosystem. Small businesses are the backbone of rural economies. Tourism gives them the foot traffic and revenue streams they need to thrive.
5 – It Diversifies and Strengthens the Economic Base
Communities that rely heavily on a single sector, like mining, manufacturing, or agriculture, are vulnerable to market shifts. Tourism provides economic resilience and complements existing industries.
During economic downturns or global disruptions, many people skip expensive international travel but still seek local or regional experiences. That makes tourism a stabilizing force.
6 – It Raises the Community’s Profile
Tourism does not just attract vacationers. It attracts investors, talent, and future residents. A community that presents itself as a great place to visit is often seen as a great place to live and do business.
A successful tourism brand is more than just marketing. It tells a story that resonates with outsiders and locals alike. It elevates perception, creates buzz, and builds long-term visibility.
Tourism, Done Right, Builds More Than Just Visits
Tourism is not a silver bullet, but when it is done well, with community input and benefit, it becomes a catalyst for broader development. It reflects a community’s values, protects its unique assets, and becomes a tool for sustainable growth.
In a recent long-form survey conducted by TWG with a client preparing a strategic tourism marketing plan, 94% of respondents said they believe increasing tourism is a worthwhile goal for their community. That kind of local buy-in is essential. And increasingly common.
But Here’s the Challenge Many Small Communities Face
Despite recognizing tourism’s potential, many rural areas struggle to get started: limited budgets, fragmented stakeholder input, and a lack of specialized expertise often mean great ideas stay on the drawing board, while opportunities for economic diversification slip away. How do you craft a compelling brand, engage your community, and launch effective marketing without draining resources or risking missteps?
TWG Can Help You Overcome These Hurdles
At TWG Communications, we have spent over three decades helping communities just like yours turn these challenges into successes. We partner with regional authorities and tourism organizations to develop tailored strategies and campaigns that deliver measurable results. This includes everything from strategic planning and brand development to community engagement and full-scale marketing.
Our track record speaks for itself, with collaborations including: Ontario Tourism Marketing Partnership Corporation, Northeastern Ontario Tourism, District of Muskoka, Town of Huntsville, City of Penticton, City of North Bay, Municipality of Callander, Municipality of West Nipissing, Town of Cochrane, Town of French River, Town of Kapuskasing, and Town of Tecumseh.
Whether you are revitalizing a local festival or building a regional tourism blueprint, we are here to guide you every step of the way.