Measuring sustainable tourism: how the Destination Canada Prosperity Index is redefining tourism performance

“What you measure affects what you do; but if the measurements are flawed, the decisions may be inadequate.” — Joseph E. Stiglitz, Nobel laureate in economics.¹

In 2009, the Stiglitz-Sen-Fitoussi Commission report marked a turning point in the way economic and social performance indicators were considered. It highlighted the crucial importance of measurement choices in the orientation of public policies, and called for going beyond GDP as the only measure of progress to include quality of life and environmental and sustainability issues. Fifteen years later, theProsperity and well-being index by Destination Canada² is part of this movement by offering a more holistic reading of the benefits of tourism, at the crossroads of economic, social, cultural and environmental issues. Both a diagnostic tool and a strategic lever, here is why this index deserves your attention.

Why measure tourism sustainability?

Tourism, if poorly managed, can create environmental pressures, social tensions, and an unequal distribution of economic benefits. Sustainability indicators are used to identify these impacts, guide policy decisions, and inform stakeholders. By going beyond traditional measures that focus on attendance and consumption, they allow for a holistic approach that takes into account the well-being of residents, the protection of ecosystems and the resilience of local economies.

A new tool to guide tourism development

The Destination Canada Prosperity and Wellbeing Index was designed to offer a new way of understanding the overall impact of tourism in all its dimensions. It was developed with the input of numerous players in the Canadian tourism industry. It is based on international best practices, inspired in particular by United Nations sustainable development goals, while being adapted to the Canadian context.

As Lisa Barrett, Director of Strategic Planning at Destination Canada, points out:

“The Tourism Prosperity and Wellbeing Index is more than just a measurement tool, it's a framework that broadens our perspective on what success in tourism really means.”³

Its objective? Equip destinations, governments and businesses to make informed decisions, based on reliable data, to promote sustainable, inclusive and regenerative tourism growth.

An interconnected six-dimensional structure

To better reflect the multiple facets of tourism, the Prosperity and Wellbeing Index is based on six interconnected sub-indices: economy, employment, support, environment, commitment and experiment. Each of these sub-indices includes several categories of indicators, 30 in total, then divided into 109 indicators measured at the provincial and territorial level.‍

• The economy assesses the growth, resilience and diversity of tourism businesses, as well as the investments and revenues generated.
• The job focuses on the availability, diversity and attractiveness of jobs in the tourism industry, including the perception of careers in the sector.
• The support measures the reception capacity of destinations, including infrastructure, quality of life, and digital and physical connectivity.
• The environment looks at the ecological footprint of tourism, the presence of protected areas, and the adoption of sustainable practices.
• The commitment highlights cultural vitality, community participation, openness to visitors, and Indigenous representation.
• The experience is interested in the perceived quality of tourist experiences, the demand and loyalty of visitors.

Each sub-index is calculated by averaging the scores for its categories. These scores are themselves derived from standardized indicators on a scale of 0 to 100. This method ensures a fair weighting and a balanced reading of tourism performance.

A tool adapted to the Canadian context

Designed to meet the evolving needs of the sector, the Prosperity and Wellbeing Index provides an analysis of both national and regional, taking into account the specific realities of each province and territory. It does not compare regions to each other, but rather each territory to its own historical data, which makes it possible to highlight the progress made over time rather than establishing absolute rankings.

This approach avoids biases linked to the size, maturity or tourist profile of regions, and makes it possible to identify development levers specific to each territory. By measuring the evolution of indicators such as the carbon footprint per visitor, the quality of life of residents or the diversity of tourism businesses, destinations can adjust their strategies in a targeted manner.

Destination Canada made sure to incorporate Indigenous perspectives into the indicator categories. The Aboriginal Tourism Association was consulted during the development of the methodology. However, the availability of data concerning Aboriginal contexts is a challenge, but where available, they were included in the analysis.

Accessible and useful data

All the data and analyses of the index are available online via the Canadian Tourism Data Consortium. Users can explore:

• detailed profiles by province, territory, or across Canada;
• temporal trends;
• comparisons by sub-index.

Destination Canada uses visual representations such as the sun ray graph to illustrate the annual values of the global index as well as those of its six sub-indices. Below are the results for Quebec in 2022. Some indicators, such as “Tourism Job Growth” (92), “International Openness” (58) and “Tourism Receipts” (58), contribute strongly to the overall score. Conversely, dimensions such as “Cultural Resources” (17) reveal the potential for improvement. This type of visualization makes it possible to identify at a glance the assets and priority areas of intervention, thus facilitating a strategic reading of the data.

This open access promotes transparency, shared learning and strategic alignment between tourism stakeholders. It also makes it possible to concretely equip tourism organizations in their decision-making, whether it is a question of targeting investments, strengthening the attractiveness of their destination or better integrating sustainability issues into their offer.

How can destinations use it?

The index is not just a one-time report: it is a strategic tool that can guide the decisions of tourism destination managers, governments, and businesses. Destination Canada calls it a catalyst for change. Here are some concrete ways to use it:

• Identifying distinctive strengths of its region to be highlighted in positioning and communications.
• Identify areas for improvement, for example, the diversity of experiences offered or digital accessibility.
• Support funding requests by showing progress or challenges on certain indicators.
• Better alignment of public policies local or regional with the goals of sustainability, quality of life and equity.
• Comparing your practices with those from regions with similar profiles, to be inspired by winning strategies.

In conclusion: a framework for building tourism for the future

The Prosperity and Wellbeing Index invites the tourism industry to think differently. It's no longer just about growing, but about doing so by enriching communities, maintaining ecosystems, and strengthening the human travel experience. By adopting multidimensional indicators, Canada is positioning itself at the forefront of sustainable, inclusive and regenerative tourism. By appropriating this tool, we contribute to a shared vision of tourism as a driver of collective well-being. It's time to measure what really matters in order to make better decisions.

To remember

• ‍A new framework for tourism :The index offers a broad vision of tourism performance, based on multiple aspects that go beyond economic indicators alone.‍
• Six key dimensions : Economy, employment, support, environment, commitment and experience structure the analysis based on 109 indicators measured at the national and provincial levels‍
• A contextualized reading : The index does not compare regions with each other, but assesses the progress made according to the realities specific to each territory.‍
• A tool at the service of action : By combining reliable data and strategic visualization, the index helps destinations to guide their priorities and strengthen their sustainable development.‍
• Open data for knowledge sharing :The index is accessible online, promoting transparency, dialogue between actors and the collective ownership of tourism issues.

Do you want to consult the index online? Access the Canadian Tourism Data Consortium to explore the results.

Do you want to go further? Our team can assist you in analyzing data and integrating indicators into your strategic planning. Contact us to discuss it.

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