Contributing to the quality of life and the economy

The tourism industry in Muskoka is an important driver of the local economy and is by far the region's largest industry and employer. In 2004, it generated close to 3,000 jobs and $83 million of labour income. In the same year, over 1.9 million visitors came to Muskoka and spent $234 million. That generated over $102 million in taxes -- $5 million of which accrued to the District in the form of municipal taxes. Overall, tourism in Muskoka contributed $163 million to the GDP.

Second homeowners are also an important tourist market and are significant contributors to the local economy. Beside the property taxes they pay - these individuals poured an additional $581 million into the local economy -- $13.71 million of which was spent on entertainment, dining and attractions.

Governments receive $0.30 of every tourism dollar generated - money that can be used to improve infrastructure, roads, health care, education and more. Therefore, a healthy and vibrant tourism industry is good for all citizens.

District of Muskoka Invests in Tourism

In 2005, Muskoka Tourism's total income and corresponding expenses were about $685,000. Of this amount -- $250,000 was provided by the District of Muskoka. The balance of the revenue was generated through membership fees and cooperative marketing partnerships.

To put the funding in perspective, the $250,000 that is generously provided by the District of Muskoka represents about 5% of the revenue that accrues to the District in the form of municipal taxes, or about 1/3% of total taxes generated from Tourism. In relation to visitor spending, it represents a fraction of a percent of the total visitor spend. Therefore, the $250,000 is money well invested.

However, the District's investment only marginally covers the costs associated with the organization's operations. For example, the visitor's centres alone cost over $200,000 per year to operate. Therefore, Muskoka Tourism must generate revenue to fund marketing programs and pay staff through membership fees and cooperative marketing ventures. Occasionally, the organization receives additional grants from other government agencies but there is a price attached - Muskoka Tourism members must contribute as much or more than the government partner.

In 2005, member contributions and other partnerships allowed Muskoka Tourism to produce a vacation guide and map; participate in trade shows; conduct media and trade familiarization tours; and maintain our best-in-class website that has generated over 19.8 million hits and almost 500,000 unique visitors since its inception in 2004. FedNor, the Ministry of Tourism, Service Canada, Muskoka Partners, and the Ontario Tourism Marketing Partnership Corporation all partnered with Muskoka Tourism in 2005.