Alberta Budget 2025: Tourism Operator Stakeholder Brief

Executive Summary

Alberta Budget 2025 provides Tourism and Sport with $118 million in operating expense and $35 million in three-year capital investment, both declining from 2024-25 levels. Operating expense falls to $111 million by 2027-28 as temporary tourism initiative funding and one-time major sport event support conclude. This budget contraction occurs against a favourable backdrop: the weak Canadian dollar (69.6 US cents) makes Alberta an attractive destination for international visitors. Parks infrastructure receives significant investment through Forestry and Parks ($293 million capital over three years), and the Alberta Indigenous Opportunities Corporation has expanded loan guarantees to include Indigenous-led tourism. Tourism operators face a paradox: strong market conditions undermined by declining government marketing and program support.

Top 5 Relevant Budget Measures

1. Tourism and Sport Operating: $118 million, declining to $111 million -- An $8 million decline from 2024-25, primarily from the conclusion of temporary funding for tourism initiatives and one-time major sport event funding. This trajectory reduces the ministry's capacity for marketing and industry support.

2. Parks Capital Investment: $293 million over three years -- Including $116 million for provincial parks capital maintenance and renewal, $29 million for new campground development, $31 million for parks water and wastewater infrastructure, and $24 million for Crown land trails. This investment maintains and expands core tourism assets.

AIOC Tourism Expansion: Indigenous tourism now eligible for loan guarantees -- The Alberta Indigenous Opportunities Corporation, which has provided more than $720 million in loan guarantees to date, expanded in 2024 to include Indigenous-led tourism initiatives. AIOC expense increases $0.5 million in 2025-26 to $9 million.

Community Facility Enhancement Program: $100 million over three years -- Through Arts, Culture and Status of Women, this program supports community facilities that attract visitors and host events. However, a $25 million temporary bump concludes after three years, reducing the program in 2026-27.

Active Communities Initiative: $30 million over three years -- Capital funding of $10 million per year through Tourism and Sport for sport and recreation infrastructure that supports both local residents and visitors.

Risks

The declining Tourism and Sport operating budget is the primary risk. In an industry where marketing investment drives visitor attraction, a ministry budget shrinking from $118 million to $111 million reduces the province's ability to compete for domestic and international tourist spending. Competitor destinations in British Columbia, Ontario, and internationally are increasing marketing investments, creating a widening gap.

U.S. tariff tensions create a complex cross-border tourism dynamic. While the weak Canadian dollar attracts American visitors, political tensions from tariff disputes may dampen the appetite for cross-border travel. Canadian retaliatory tariffs on U.S. consumer goods also increase costs for tourism operators who source supplies, food products, or equipment from American suppliers.

The conclusion of temporary tourism funding and one-time major sport event support signals that the government views recent tourism investments as time-limited rather than ongoing commitments. Without advocacy for sustained funding, the industry faces a structural reduction in public sector support.

The seniors camping fee discount, while socially beneficial, reduces Forestry and Parks fee revenue and is part of a broader $56 million decrease in parks and environment revenue from 2024-25. This could constrain parks operating budgets and visitor services over time.

Rising unemployment at 7.4% and inflation at 2.6% create a mixed domestic tourism picture. While lower interest rates may free up some household spending, elevated unemployment typically reduces discretionary travel spending by Albertans.

Opportunities

The weak Canadian dollar is the single most favourable market condition for Alberta tourism. At 69.6 US cents, the dollar makes Alberta significantly more affordable for American and international visitors. Tourism operators should develop pricing strategies and marketing messages that capitalize on this value proposition.

The parks capital investment of $293 million creates substantial tourism product development opportunities. New campground development ($29 million), trail upgrades (including $5 million for Kananaskis and $24 million for Crown land trails), and parks water and wastewater improvements ($31 million) enhance the visitor experience at Alberta's most significant natural attractions.

The AIOC expansion to Indigenous-led tourism is a structurally important development. With more than $720 million in loan guarantees already deployed and a growing mandate, AIOC provides access to capital for tourism projects that combine cultural experiences with visitor economy development. This aligns with growing international demand for authentic Indigenous tourism experiences.

The Alberta Foundation for the Arts receiving annual increases to more than $43 million by 2027-28 supports cultural tourism through arts programming, events, and venue development.

Calgary and Edmonton event centre capital projects (Calgary Event Centre at $173 million three-year, Edmonton Event Park at $52 million) create major event attraction infrastructure that drives tourism visitation.

Likely Government Intent

The government is treating Tourism and Sport as a ministry that has completed its temporary boost cycle and is returning to baseline funding. The fiscal plan frames the operating decline as the conclusion of specific initiatives rather than a structural cut. The government appears to be shifting tourism support from direct marketing funding toward infrastructure investment (parks, event centres, community facilities) that creates the conditions for private sector tourism growth.

The AIOC tourism expansion signals interest in Indigenous economic development through tourism, consistent with broader reconciliation messaging and the $228 million Indigenous Relations operating budget.

Immediate Questions to Ask Ministries

1. Which specific temporary tourism initiatives are concluding, and what was their measured impact on visitor spending? Can successful programs be renewed?

2. What is the campground development timeline, and will concession or partnership opportunities be available for private operators?

3. How will the AIOC tourism loan guarantee program be promoted to Indigenous communities, and what technical support is available for project development?

4. What is the government's strategy for capitalizing on the weak Canadian dollar to attract international visitors?

5. How will the Community Facility Enhancement Program reduction in 2026-27 affect tourism-relevant facility projects?

48-Hour Action Checklist

• Assess the impact of declining Tourism and Sport operating budget on current marketing and industry support programs
• Request details on which temporary tourism funding initiatives are concluding and their measured outcomes
• Prepare a statement on cross-border tourism impacts from tariff tensions and the weak dollar opportunity
• Review parks capital investment for tourism product development and concession opportunities
• Contact AIOC regarding Indigenous tourism loan guarantee eligibility and application process

30-Day Monitoring Checklist

• Submit a tourism marketing investment proposal to the ministry ahead of summer peak season
• Engage with Forestry and Parks on campground development timelines and private operator participation
• Monitor arts and culture funding decisions for tourism-adjacent event and venue support
• Coordinate with municipal tourism organizations on LGFF-funded tourism infrastructure projects
• Track Calgary and Edmonton event centre capital timelines for major event attraction scheduling
• Assess impact of education property tax increases on commercial tourism property costs
• Monitor visitor data for early indicators of exchange rate-driven demand increases

Suggested Message Frames

Frame 1 -- Growth Sector: "Tourism is Alberta's fastest-growing export sector. A declining ministry budget sends the wrong signal to an industry ready to capitalize on the weak dollar and growing international interest in western Canada."

Frame 2 -- Parks as Tourism Anchors: "Provincial parks are tourism anchors. The $116 million in parks maintenance protects core tourism assets, but we need complementary investment in visitor services and marketing."

Frame 3 -- Indigenous Tourism: "Indigenous tourism is an untapped growth sector. The AIOC expansion to include tourism projects opens new opportunities for authentic cultural experiences that international visitors seek."

Opposition Narratives to Anticipate

Opposition will argue the government is cutting tourism funding at the worst possible time, pointing to the weak dollar opportunity and tariff-related need for economic diversification. Critics may note the contrast between the $311 million Petrochemicals Incentive Program and the declining $118 million tourism budget, arguing the government's diversification narrative does not match its spending priorities. Cultural and arts organizations may argue that the reduction in the Community Facility Enhancement Program undermines the cultural tourism ecosystem.

Tourism operators should frame advocacy around return on investment, demonstrating the economic multiplier of tourism marketing dollars in terms of visitor spending, employment, and tax revenue generated.

Data Points to Monitor

• International and domestic visitor arrival data, particularly from the United States
• Exchange rate movements and their correlation with U.S. visitor volumes
• Parks visitor count data and campground occupancy rates
• AIOC tourism loan guarantee applications and project approvals
• Community Facility Enhancement Program project approvals for tourism-relevant facilities
• Calgary and Edmonton event centre construction progress and event booking announcements
• Alberta Foundation for the Arts grant allocations for tourism-adjacent cultural programming
• Cross-border travel advisory and sentiment data related to tariff tensions