Return on Investment for Urban Lighting—An Investment That Can Yield Much More Than Just Light
Published on February 18, 2025 | Last updated on September 4, 2026
A study on the ROI of urban lighting in Canada, inspired by the European experience and conducted with the help of AI.
At Leblanc Illuminations-Canada, we are gradually integrating artificial intelligence into our operations. Since we are also committed to producing informative content for our Canadian clients in the lighting industry, we asked the AI to write a column on the return on investment of urban lighting.
Far be it from us to take all the credit for this content without mentioning that we entrusted this task to artificial intelligence, given that the lighting industry is much more mature in Europe than it is in Canada and that AI could conduct research more quickly and efficiently than we could have.
After reviewing the results, we must say that we fully endorse the content generated by the AI: it makes perfect sense, and although the conclusion of this column does not provide a precise return-on-investment multiplier, it highlights a very interesting line of thought by drawing a parallel between the European experience with light displays and the emerging Canadian industry. Enjoy the read!
An Illumination of the Benefits
The Column
Every year, as the holiday season approaches, Canadian municipalities face the same question: Are urban holiday lights merely an aesthetic expense or a genuine strategic investment? In a climate where public budgets are under close scrutiny, citizens are demanding greater energy efficiency, and downtown areas must compete with online retail, the answer warrants a nuanced perspective. Light displays do more than just beautify the streets; they can become a powerful tool for economic development, regional marketing, and civic engagement.
Measuring ROI: Beyond the Cost of Set Design
When discussing return on investment, it’s tempting to directly compare the budget allocated to holiday lighting with the short-term municipal revenue it generates. However, this approach is too narrow. The true ROI of urban lighting is better measured through several indicators: increased foot traffic in the downtown area, higher spending at local businesses, attendance at events, longer visit durations, hotel occupancy, media coverage, social media engagement, and an improved city brand image.
Added to this are benefits that are harder to quantify but just as important: civic pride, a sense of safety in the evenings, the welcoming atmosphere of public spaces, and a municipality’s ability to create a memorable shared experience. In this sense, holiday lighting should be viewed as a form of temporary event infrastructure capable of supporting the local economy during a key time of year.
Europe: A More Mature Industry, Built on Experience
In Europe, holiday lighting displays have long been an integral part of a clear tourism and economic strategy. Cities such as Strasbourg, Vienna, Frankfurt, Cologne, London, Madrid, and Paris no longer view their light displays as mere seasonal decorations, but as essential components of their winter appeal. Christmas markets, light displays, launch events, and urban installations form a comprehensive ecosystem that attracts local, regional, and international visitors.
Recent European data show that this approach can yield significant benefits. At several major European Christmas markets, visitor spending has risen sharply in recent years, while these markets continue to attract large crowds. A study reported by Le Figaro confirms that Christmas markets continue to draw visitors. In Strasbourg, for example, activity surrounding the Christmas market is often cited as a major driver of visitor traffic, with a direct impact on retail, restaurants, lodging, and transportation. In the United Kingdom, analyses of retail foot traffic also show that Christmas lighting ceremonies can boost spending, extend the length of visitors’ stays, and attract customers from more distant areas.
The European model is based on a simple idea: illuminated sites become destinations. Lighting is not installed merely to decorate a street; it is designed as a journey, a visual signature, an invitation to explore, shop, take photos, and share the experience. This level of sophistication explains why European budgets may seem more ambitious: they fund not only lighting products, but a comprehensive strategy to attract visitors.
Canada: Significant Potential, but Still Underutilized
In Canada, the situation is different. Distances are greater, winters are harsher, tourist seasons are often concentrated, and municipalities must contend with widely varying budgetary realities. Yet these constraints can actually serve as arguments in favor of better-planned investment in urban lighting. In many Canadian cities, particularly in Quebec, Ontario, and Western Canada, downtown areas seek to maintain their vitality during the cold months. Illuminations can play a key role in this: they give people a reason to go out, create a sense of safety, and transform the cold into a positive experience.
The example of Montreal clearly illustrates this trend. The gradual development of light displays in the downtown area demonstrates that a multi-year, planned approach can help sustain foot traffic, commercial appeal, and urban identity during the holiday season. In an environment where downtown areas must differentiate themselves from shopping malls and online retail, the lighting experience becomes a competitive advantage that is difficult to replicate elsewhere.
Canada also has an asset that many European destinations lack to the same extent: a natural association between winter, snow, local heritage, and the great outdoors. When well-designed, light displays can highlight this identity rather than simply importing European models. The challenge, therefore, is not to copy Strasbourg or Vienna, but to create lighting experiences that reflect Canadian realities: snow-covered streets, public squares, parks, shopping districts, outdoor markets, ice rinks, pedestrian paths, and community gatherings.
Comparing Investments: One-Time Expenses or Reusable Assets?
A key difference between Canada and Europe lies in how they approach investment. In more mature European markets, decorations are often incorporated into multi-year programs. Cities gradually update their installations, develop themes, enhance the walking routes, and coordinate lighting displays with local businesses, tourist offices, and seasonal events. The result is a cohesive experience that continues to improve year after year.
In Canada, some municipalities still view holiday lighting as an annual expense to be cut rather than an asset to be optimized. However, sustainable, modular, repairable, and reusable decorations can be amortized over several seasons. When combined with smart planning, high- LED -efficient technologies, and a consistent implementation strategy, they help reduce the annual cost of use while increasing the value perceived by residents and visitors.
So the question isn’t just, “How much do the holiday lights cost?” It should rather be, “What benefits do they bring to our community, and for how many years?” This nuance completely changes the budget discussion. A well-designed investment can support local businesses, attract visitors, strengthen the city’s brand, and improve the citizen experience—all while remaining energy-efficient.
Some of our achievements for your events and spaces.
The Key Drivers of Return on Investment
To maximize the ROI of urban lighting displays, Canadian municipalities can draw inspiration from several European practices while adapting them to their local context. The first is to focus efforts on strategic locations rather than spreading out the decorations. A shopping street, a public square, a Christmas market, or a clearly defined pedestrian route can have a greater impact than a scattered installation lacking a unifying theme.
The second is to create an experience, not just decorations. Visitors need a reason to come: an iconic photo spot, an illuminated arch, a themed street, an interactive installation, a musical atmosphere, a lighting ceremony, or a family-friendly tour. The more memorable the experience, the more word-of-mouth buzz, social media posts, and repeat visits it generates.
The third approach involves working with local businesses. Trade associations, restaurant owners, hoteliers, event organizers, and tourism agencies must be included in the planning process. A successful lighting display becomes more profitable when it is linked to a program of events, promotions, decorated storefronts, temporary markets, or cultural events.
The fourth step is to measure. Too often, light displays are evaluated based on anecdotal comments or general impressions. However, it is possible to track concrete indicators: foot traffic, retail sales, hotel occupancy rates, event attendance, average length of stay, digital engagement, media coverage, and citizen satisfaction. This data helps justify budgets, adjust facilities, and demonstrate the project’s value year after year.
Energy efficiency and profitability: two compatible goals
The debate over holiday lighting can no longer ignore energy and environmental concerns. However, pitting the magic of the holidays against energy conservation is a false dichotomy. Technologies such as LED, timers, reduced lighting hours, sustainable materials, and the reuse of structures now make it possible to design lighting projects that are far more environmentally responsible than in the past.
In Europe, several cities have already incorporated this approach into their strategies: fewer hours of lighting, but more targeted installations; less quantity, but more consistency; less waste, but greater impact. This approach is particularly relevant for Canada. In a climate where citizens are concerned about the responsible management of public funds, a well-explained, well-measured, and well-designed lighting project can be seen not as an unnecessary expense, but as a sustainable investment in urban vitality.
Conclusion: Investing in lighting is investing in the urban experience
The parallel between Canada and Europe is enlightening. Europe demonstrates that holiday lights can become real economic drivers when they are designed as tourist, commercial, and cultural experiences. Canada, for its part, has immense potential to develop its own approach, tailored to its climate, its cities, its communities, and its winter identity.
For municipalities, the real question is therefore no longer whether or not to install streetlights, but how to do so intelligently. A well-planned project can attract visitors, support local businesses, strengthen a sense of community, enhance the city’s image, and generate benefits that extend far beyond the holiday season. In this sense, urban holiday lights are not just a year-end expense—they are an investment in a community’s vitality, appeal, and collective memory.
Key Takeaways for Municipal Decision-Makers
Think of lighting displays as a strategy to attract visitors, not as a decorative expense.
Plan investments over several years to maximize sustainability and depreciation.
Create routes and points of interest rather than scattering the facilities.
Involve local businesses, tourism organizations, and local events in the initiative.
Measure the impact using concrete metrics: foot traffic, sales, participation, visibility, and satisfaction.
Use energy-efficient and sustainable technologies to balance a festive experience with energy responsibility.
Would you like to transform your public spaces into memorable, beautifully lit destinations? Contact us today so we can work with your teams to design a lighting project tailored to your city, your goals, and the changing seasons.