Tag: economy

  • Tourism Study

    Benefits for Stations, Costs for the Corridor

    ALTO has published its own tourism study. It studies only the seven station cities — and counts none of the costs.

    ⚠ New Release: ALTO Commissions a Tourism Study

    In June 2026 ALTO released “Tourism in the Alto Corridor: Current Conditions and Potential Impacts,” prepared for ALTO by the consultancy CPCS in association with HDR. It is the first time the project has placed a tourism analysis on the public record. The report’s headline is that ALTO “could contribute an additional $1 billion to GDP annually, and support 11,500 more jobs under a medium coordination scenario.”

    The report carries the standard commissioned-work disclaimer — the opinions “are those of the authors and do not necessarily reflect the views of Alto” — and is dated June 2026, after the April 24 consultation deadline had already closed. It is a gross-benefit study of the seven station cities. It does not measure a single cost.

    Critical Finding

    ALTO’s own consultant has now confirmed, in writing, the distinction this initiative has argued from the start: tourism benefits accrue to stations, not to the tracks between them. The report studies only the six Census Metropolitan Areas that contain the seven proposed stations — Toronto, Peterborough, Ottawa-Gatineau, Montreal, Trois-Rivières, and Québec City. The rural landscapes the corridor would traverse without stopping — Frontenac, Leeds & Grenville, the entire RTO 9 region — are outside the study’s frame entirely.

    The report is a benefits-only document. It contains no construction-phase impacts, no tourism losses, and no accounting for visitors who shift away from non-station regions toward station hubs — even though the report itself concedes that smaller places that fail to differentiate “will limit gains — or even risk losing activity to larger centres.” The study answers one question: how much tourism might the seven stops gain? It never asks the second: what does the corridor cost the regions it passes through?

    The much-quoted “$1 billion / 11,500 jobs” is the medium scenario, not the central case. The low scenario is +$177 million and roughly 2,000 jobs. Even the medium figure is contingent on dedicated tourism policy, last-mile connections, and destination readiness across the corridor — none of which ALTO controls or funds. The report concedes the foundational caveat in its own words: “HSR alone is rarely sufficient to generate sustained tourism development.”

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    Benefits for Stations, Costs for the Corridor — Full Brief (PDF)
    A point-by-point reading of ALTO’s tourism study against the cost side it omits, with the evidence from this initiative’s earlier tourism research
    Download PDF
    What the Study Is

    A commissioned, benefits-only study of the seven stops

    “Tourism in the Alto Corridor” combines three things: a baseline profile of tourism in the six station CMAs; a review of international case studies on high-speed rail and tourism; and three illustrative scenarios that vary the level of tourism-policy coordination from low to high. Its baseline finding is that tourism in those CMAs already generates over $31 billion in visitor spending, contributes about $33.7 billion to GDP, and supports more than 377,000 jobs, with Toronto and Montreal accounting for the largest shares.

    The forward-looking finding — the one ALTO’s communications will lead with — is that additional tourism spending under the project could add to GDP and jobs. But the three scenarios produce very different numbers, and the report is explicit that they are “illustrative and should not be interpreted as forecasts.”

    +$177M
    added GDP / ~2,000 jobs — low coordination scenario
    CPCS for ALTO, p.23
    +$1.0B
    added GDP / 11,500 jobs — medium coordination scenario (the headline)
    CPCS for ALTO, p.23
    +$3.9B
    added GDP / 43,000 jobs — high coordination scenario
    CPCS for ALTO, p.23

    The single most important sentence in the document appears on page 7: the destinations “most likely to be affected by a high-speed rail service are the urban areas where stations are located.” That premise defines the study’s entire scope. Everything that follows is built on the six station CMAs. The communities between them — the ones with no station — are not modelled, not measured, and not mentioned in the results.

    What ALTO’s Consultant Concedes

    The report admits the bypass risk in its own words

    This initiative has argued throughout the consultation that high-speed rail creates a station/no-station divide: stations create tourism, tracks do not. ALTO’s commissioned study does not contradict that argument. In several places, it states it.

    What the report saysWhat it means for the corridor regions
    “The travel and tourism destinations most likely to be affected by a high-speed rail service are the urban areas where stations are located.” (p.7) The study is then built only on the six station CMAs.The regions the southern corridor would cross without a station — Frontenac, Leeds & Grenville, Lennox & Addington, the RTO 9 region — are outside the analytical frame. The study cannot show a benefit for them because it never looks at them.
    Smaller municipalities that fail to differentiate and coordinate “will limit gains — or even risk losing activity to larger centres.” (p.18)This is the bypass / agglomeration effect, conceded. The report frames it as a risk that supportive policy might manage. For a region with tracks and no station, it is the predictable default, not a managed exception.
    “HSR alone is rarely sufficient to generate sustained tourism development; realized impacts depend on coordinated local strategies.” (p.18)Even the modelled gains require destination marketing, event programming, accommodation, and last-mile connections that ALTO neither funds nor controls. Absent that coordination, the report’s own logic points to the low scenario or below.
    International tourist numbers see “limited to no change” (p.22 note); nearly all modelled gains are in-corridor domestic visitors making shorter trips.The projected uplift is largely Ontario and Quebec residents travelling more within their own provinces — a reshuffling of where Canadians already spend, not clearly net-new national tourism. The report never tests whether this is displacement.

    Read together, these are not stray caveats. They are the analytical spine of the report. ALTO’s consultant has confirmed the station/no-station distinction, conceded that non-station places can lose activity, and acknowledged that the benefits depend on conditions outside ALTO’s gift.

    The Cost Side

    Everything the study does not count

    A tourism impact assessment that names a benefit but no cost is a half-ledger. The report’s title promises “potential impacts”; what it delivers is potential gains at the seven stops. The costs documented in this initiative’s earlier research — and in submissions from affected regions — appear nowhere in it.

    Cost the corridor imposesHow ALTO’s tourism study treats it
    Construction-phase disruption. Eight to ten years of blasting, dust, night lighting, truck traffic, road closures, and trail severance through tourism-dependent rural areas — documented in this initiative’s RTO 9 submission and the snowmobile-trail brief.Absent. The scenarios model an operating railway “if Alto were in service today.” The decade of construction that precedes any operating benefit is not in the analysis at all.
    Treatment:Not counted
    Trail and active-tourism loss. The Cataraqui Trail (a 104 km segment of the Trans-Canada Trail) and the organized snowmobile network of OFSC Districts 1, 2 and 6 — an estimated $220–270 million in direct expenditure and $450–540 million in total annual activity — run through the corridor.Absent. The study’s tourism universe is the six metropolitan CMAs. Rural rail-trail and winter-tourism economies are not in its scope, so their potential loss does not register against the modelled urban gains.
    Treatment:Not counted
    The at-risk regional economy. RTO 9 recorded $1.8 billion in tourism spending in the first nine months of 2024; the Rideau Heritage Route sustains roughly $695 million in GDP and 8,744 jobs. Both sit in the southern corridor’s path.Absent. Neither figure appears. The regions that generate them are not among the six CMAs studied, so the report’s GDP and jobs gains are not netted against any of this exposure.
    Treatment:Not counted
    VIA Rail displacement — regional and national. MP Scott Reid has confirmed in writing that either corridor option is likely to reduce VIA ridership and trigger service cuts through Kingston, Brockville, and other southeastern Ontario towns — the low-carbon access mode visitors use to reach these destinations without a car. The risk is also national: then–NDP transport critic Taylor Bachrach (Skeena–Bulkley Valley) warned that VIA earns more than 80% of its revenue and carries more than 90% of its passengers on the Quebec City–Windsor corridor, and that handing that corridor to a private operator would leave VIA with “a fraction of the revenue” it uses to cross-subsidize long-distance rural routes across the Prairies, the West, and the Maritimes.Absent. The report does not consider the loss of existing rail access to non-station communities, even as it counts new rail access as a benefit to station communities. Nor does it weigh the wider risk to the national VIA network that the corridor’s revenue currently helps sustain.
    Treatment:Not counted
    Visitors drawn away from non-station regions. The bypass effect the report concedes on page 18 — activity migrating to larger centres with stations.Conceded but not quantified. The report names the risk and then models only the upside at the stations that would gain. The corresponding loss elsewhere is acknowledged in prose and excluded from the numbers.
    Treatment:Acknowledged, not measured
    How Robust Are the Numbers?

    Assumption-driven scenarios, not forecasts

    Even taken on its own terms, the report’s headline number is softer than it will sound in a press release. Five features of the method are worth keeping in view.

    The headline is the middle scenario, not a central estimate

    The “$1 billion / 11,500 jobs” figure is the medium coordination scenario. It requires dedicated tourism policy in every city, improved last-mile connections, and rising convention and event activity. The report’s own framing makes clear these are conditions to be met, not outcomes of the railway itself.

    The gains are scenario assumptions, not a Canadian model

    The arrival, length-of-stay, and spending percentages in Appendix B are judgmental selections from the international literature, applied to Canadian baseline data. They are not derived from a Canadian demand model or validated against Canadian outturns. The outputs are functions of the chosen inputs.

    No reference-class or outturn discipline

    The tourism uplift is bracketed by three policy scenarios chosen to span a positive range. There is no reference-class comparison to what comparable HSR projects actually delivered — the same optimism-friendly structure this initiative has critiqued in ALTO’s ridership and cost work.

    Shorter stays can reduce spending even as arrivals rise

    The report concedes that average length of stay falls in some cities even in the medium scenario, as shorter-staying in-corridor visitors displace longer-staying international ones, and that accommodation spending can drop even when arrival counts go up.

    The report’s own “structural differences” section undercuts transfer

    Page 19 lists the reasons the European evidence may not transfer to Canada: dispersed attractions, lower base tourism, car-dominant travel (85–98% of corridor visitors drive today; train is about 6% to Toronto and ~2% elsewhere), and an immature rail network. It concludes “early impacts may take longer to be realized.”

    Where Things Stand · June 2026

    Summary ledger

    Measuring ALTO’s tourism study against what an honest tourism assessment of the corridor would have to show:

    Confirmed
    Benefits accrue to stations, not tracks. ALTO’s consultant builds the entire study on the six station CMAs and states that station cities are the destinations most likely to be affected (p.7).
    Confirmed
    Non-station places can lose activity. The report concedes the bypass / agglomeration risk in its own words (p.18).
    Confirmed
    HSR alone is not sufficient. Benefits depend on policy coordination, last-mile connections, and destination readiness that ALTO does not fund (p.18).
    Soft
    The headline figure is the medium scenario, not a central estimate; the low scenario is roughly one-sixth of it. The numbers are scenario assumptions, explicitly “not forecasts.”
    Soft
    Gains are largely in-corridor domestic, with international numbers showing little change — raising an unanswered displacement question.
    Omitted
    Construction-phase disruption (8–10 years): not in the analysis.
    Omitted
    Trail and winter-tourism loss (Cataraqui Trail; OFSC Districts 1/2/6, $450–540M total activity): not in scope.
    Omitted
    At-risk regional economy (RTO 9 $1.8B; Rideau Heritage Route $695M GDP / 8,744 jobs): not netted against modelled gains.
    Omitted
    VIA Rail displacement: loss of existing rail access to non-station communities not considered — nor the national risk to VIA, which earns 80%+ of its revenue on this corridor.
    Omitted
    Bypass losses: conceded in prose (p.18) but excluded from the numbers.

    ALTO has now produced its own tourism study, and it confirms three things this initiative has argued throughout. Tourism benefits accrue to stations, not to tracks. The rural corridor regions are not in the study. And the report contains no cost side at all. ALTO’s consultant has, in effect, validated the station/no-station distinction while declining to measure the half of the ledger that falls on Eastern Ontario. A benefits-only study of the seven stops is not a tourism impact assessment of the corridor.

    Download Full Brief
    Benefits for Stations, Costs for the Corridor (PDF)
    Complete reading of ALTO’s tourism study for decision-makers, RTO 9, MTCG, MPs, and constituents tracking the tourism file
    Download PDF
    Sources

    Primary documents

    1.
    CPCS, in association with HDR, for ALTO. Tourism in the Alto Corridor: Current Conditions and Potential Impacts. June 2026. (Scenario results, pp.21–24; policy-coordination conclusions, p.18; study scope, p.7; structural differences, p.19; baseline, p.5.)
    2.
    ALTO HSR Citizen Research Initiative. The Tourism Economy at Risk. citizenresearch.ca/tourism-economy
    3.
    ALTO HSR Citizen Research Initiative. Snowmobile Trails and High-Speed Rail. citizenresearch.ca/snowmobile-trails
    4.
    Submission to RTO 9 — ALTO High-Speed Rail Southern Corridor: Tourism & Economic Impacts for Southeastern Ontario. February 2026. (RTO 9 regional tourism spending, Jan–Sep 2024.)
    5.
    OFSC 2022–2023 Economic Impact Study (Harry Cummings & Associates, using the Ontario Ministry of Tourism TREIM model); district-level apportionment for Districts 1, 2 and 6.
    6.
    MP Scott Reid, correspondence to constituents (2026), re: VIA Rail displacement risk from HSR corridor selection.
    7.
    CBC News, “NDP warns privatizing high-speed rail from Toronto to Quebec could kill passenger trains in rest of Canada,” February 19, 2025 — carries MP Taylor Bachrach’s warning and VIA’s corridor revenue and passenger shares. cbc.ca
    8.
    ALTO, “Embark on a culinary adventure from Toronto to Quebec City” — Facebook advertisement, February 2026 (alto-hsr.ca).