In a first-time partnership, Ontario Craft Wineries, Tourism Partnership of Niagara and Wine Growers Ontario have come together to commission a Deloitte report that reveals the Ontario wine sector is well positioned to drive sustainable economic growth for the region, the province and the country.
Described as the Niagara Cluster, the region is made up of an extensive network or “cluster” of industries where intense economic activities can boost innovation and growth. It’s also one of the few regions in the world where premium wine grapes grow, adjacent to a world-class tourism asset in Niagara Falls.
By following best-practices and implementing key policies, similar to those in leading global tourism economies and premium wine industries, this Niagara Cluster has the potential to drive at least $8 billion in additional real GDP over the next 25-years. This represents an uplift of roughly 35% above baseline estimates in the region.
The Ontario wine industry plays a leading role within this cluster, acting as an accelerator for economic growth and job creation. Niagara is responsible for 90% of grape production in Ontario. In 2019, it is estimated the Ontario wine sector contributed just over $1.0 billion to Canada’s GDP.
The economic contribution of the Ontario wine industry reaches far beyond the footprint of its direct activities, benefiting from adjacent sectors including farming, construction, transportation, manufacturing, education, entertainment, and food and hospitality. The Niagara region is also built around a strong infrastructure network, including major highways, border crossings into the U.S., international airports within 100km and nearby access to Ontario’s largest port.
“Ontario wines already compete and win on the global stage, so working together to turn Niagara into a world-class wine and tourism region to drive significant economic growth is within reach,” says John Peller, President, Andrew Peller Ltd. and Wine Growers Ontario member. “What’s required are supporting policies and best practices that both B.C. and leading global wine regions adhere to and where Ontario needs to catch-up.”
“The most successful wine and tourism regions around the world are investing capital and growing their domestic share because their domestic industry is a priority and is supported by policies that incentivize investment,” says Paul Speck, President, Henry of Pelham and Ontario Craft Wineries member.
The Ontario wine industry also plays a critical role in driving tourism for the region, especially amongst a targeted demographic of high-end long-haul travellers.
“Niagara has a viable opportunity to become a flourishing and robust economic region with world-class wine and tourism,” says Anthony Annunizata, President, Tourism Partnership of Niagara. “The Ontario wine industry is a strong supporter of arts and culture, food and hospitality, so with the right focus we believe there is ample potential for Niagara’s tourism economy to also grow.”
Through a concentrated effort to embrace the Niagara Cluster and align Ontario’s wine industry with leading global best practices, there is a viable opportunity to not only significantly impact the Niagara region, its industries and communities, but also uncork Ontario’s economic potential.
To learn more about how to uncork Ontario, please download the full report or an executive summary at www.uncorkontario.ca
