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. As we are also committed to producing informative content for our Canadian clients in the illumination industry, we asked AI to write a column on the return on investment of urban illuminations.
Far from us the idea of taking full credit for this content without mentioning that we entrusted this task to artificial intelligence, knowing that the illumination 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 reading the result, we must say that we fully endorse the content generated by AI: it makes complete sense and, although the conclusion of this column does not establish a precise ROI multiplier, it highlights a very interesting line of thought by drawing a parallel between the European experience with illuminations and Canada’s emerging industry. Enjoy reading!
Shedding Light on the Benefits
The Column
Each year, as the holiday season approaches, Canadian municipalities face the same question: are urban illuminations simply an aesthetic expense, or a true strategic investment?
In a context where public budgets are closely examined, citizens are calling for greater energy responsibility, and downtown areas must compete with online shopping, the answer deserves some nuance. Illuminations do not simply beautify streets; they can become a powerful tool for economic development, place marketing, and community engagement.
Measuring ROI: Beyond the Cost of Decorations
When discussing return on investment, it can be tempting to directly compare the budget allocated to illuminations with the municipal revenues generated in the short term. However, this approach remains too limited. The true ROI of urban illuminations is measured through several indicators: increased foot traffic downtown, higher spending in local businesses, event attendance, longer visitor stays, hotel occupancy, media visibility, social media engagement, and improvement of the city’s brand image.
Added to this are benefits that are harder to quantify, but just as important: civic pride, the perception of safety in the evening, the conviviality of public spaces, and a municipality’s ability to create a memorable collective experience. In this sense, illuminations should be analyzed as temporary event infrastructure, capable of supporting the local economy during a key period of the year.
Europe: A More Mature Industry Built Around Experience
In Europe, holiday illuminations have long been part of an assumed tourism and economic strategy. Cities such as Strasbourg, Vienna, Frankfurt, Cologne, London, Madrid, and Paris no longer view their lighting installations as simple seasonal decorations, but as essential components of their winter attractiveness.
Christmas markets, illuminated trails, launch events, and urban scenography form a complete ecosystem that attracts local, regional, and international visitors.
Recent European data shows that this approach can generate significant economic benefits. In several major European Christmas markets, visitor spending has increased noticeably in recent years. In Strasbourg, for example, activity related to the Christmas market is often cited as a major driver of attendance, with a direct impact on shops, restaurants, accommodations, and transportation.
In the United Kingdom, analyses of retail foot traffic also show that Christmas light switch-on events can stimulate spending, extend visitor presence, and attract customers from farther areas.
The European model is based on a simple idea: illuminated sites become a destination. Light is not installed only to decorate a street; it is designed as a pathway, a visual signature, an invitation to move around, consume, take photos, and share the experience.
This maturity explains why European budgets can appear more ambitious: they do not only fund lighting products, but a complete attractiveness strategy.
Canada: Significant Potential That Remains Underused
In Canada, the context is different. Distances are greater; winters are harsher, tourism seasons are often more concentrated, and municipalities must deal with highly variable budget realities. Yet these constraints can become arguments in favour of better-planned investment in urban illuminations. In many Canadian cities, particularly in Quebec, Ontario, and Western Canada, downtown areas are looking to extend their vitality during the colder months.
Illuminations can then play a structuring role: they give people a reason to go out, create a reassuring atmosphere, and transform the cold into a positive experience. The example of Montreal clearly illustrates this evolution. The gradual development of illuminated trails downtown shows that a multi-year planned approach can help support foot traffic, commercial attractiveness, and urban identity during the holiday season.
In an environment where downtown areas must differentiate themselves from shopping centres and online retail, the lighting experience becomes a competitive advantage that is difficult to reproduce elsewhere. Canada also has an asset that many European destinations do not have to the same degree: a natural association between winter, snow, local heritage, and wide-open spaces.
When well designed, illuminations can highlight this identity rather than simply import European models. The challenge is therefore not to copy Strasbourg or Vienna, but to build lighting experiences that reflect Canadian realities: snowy streets, public squares, parks, commercial streets, outdoor markets, skating rinks, pedestrian paths, and community gatherings.
Comparing Investments: One-Time Expenses or Reusable Assets?
An important difference between Canada and Europe lies in how the investment is approached. In more mature European markets, decorations are often integrated into multi-year programs. Cities gradually renew their installations, develop themes, enhance routes, and coordinate illuminations with merchants, tourism offices, and seasonal events.
The result is a coherent experience that can improve year after year.
In Canada, some municipalities still approach illuminations as an annual expense to reduce rather than as an asset to optimize. Yet durable, modular, repairable, and reusable decorations can be amortized over several seasons.
When combined with smart planning, efficient LED technologies, and a coherent installation strategy, they can reduce the cost per year of use while increasing the perceived value for citizens and visitors.
The question is therefore not only: “How much do illuminations cost?” It should rather be: “What do they generate for our territory, and for how many years?”
This nuance completely changes the budget discussion. A well-designed investment can support businesses, attract visitors, strengthen the municipal brand image, and improve the citizen experience, while remaining controlled from an energy standpoint.
Selection of our projects for your events and spaces.
The Main Drivers of Return on Investment
To maximize the ROI of urban illuminations, Canadian municipalities can draw inspiration from several European practices while adapting them to their local reality.
The first is to focus efforts on strategic locations rather than scattering decorations. A well-defined commercial street, public square, Christmas market, or pedestrian route generates far more impact than a diffuse installation lacking a guiding concept.
The second is to create an experience, not just decoration. Visitors need a reason to come: an iconic photo spot, an illuminated arch, a themed street, an interactive installation, a musical atmosphere, a light switch-on event, or a family-friendly route. The more memorable the experience, the more it generates word of mouth, social media posts, and repeat visits.
The third is to work with local economic stakeholders. Business associations, restaurants, hotels, event organizers, and tourism services should be part of the planning. A successful illumination project becomes more profitable when it is connected to programming, promotions, decorated storefronts, temporary markets, or cultural events.
The fourth is to measure. Too often, illuminations are evaluated based on anecdotal comments or general impressions. However, concrete indicators can be tracked: pedestrian traffic, retail sales, hotel occupancy rates, event participation, average visit duration, digital engagement, media coverage, and citizen satisfaction. These data points help defend budgets, adjust installations, and demonstrate the value of the project year after year.
Energy Responsibility and Profitability: Two Compatible Goals
The discussion around illuminations can no longer ignore energy and environmental concerns. However, opposing holiday magic and energy responsibility is a false contradiction. LED technologies, timers, reduced lighting hours, durable materials, and the reuse of structures now make it possible to design lighting projects that are far more responsible than in the past.
In Europe, several cities have already integrated this dimension into their strategy: fewer lighting hours, but more targeted installations; less quantity, but more coherence; less waste, but more impact. This approach is particularly relevant for Canada. In a context where citizens are sensitive to the responsible management of public funds, a well-explained, well-measured, and well-designed illumination project can be perceived not as a superfluous expense, but as a sustainable investment in urban vitality.
Conclusion: Investing in Light Means Investing in the Urban Experience
The parallel between Canada and Europe is enlightening. Europe shows that holiday illuminations can become true economic drivers when they are designed as tourism, commercial, and cultural experiences. Canada, for its part, has immense potential to develop its own approach, adapted to its climate, cities, communities, and winter identity.
For municipalities, the real question is no longer whether or not to illuminate, but how to illuminate intelligently.A well-planned project can create foot traffic, support businesses, strengthen a sense of belonging, improve the city’s image, and generate benefits that extend far beyond the holiday season. In this sense, urban illuminations are not just a year-end expense: they are an investment in the vitality, attractiveness, and collective memory of a territory.
Key Takeaways for Municipal Decision-Makers
Think of illuminations as an attractiveness strategy, not as a decorative expense.
Plan investments over several years to maximize durability and amortization.
Create routes and points of interest rather than scattering installations.
Involve businesses, tourism organizations, and local events in the process.
Measure results using concrete indicators: foot traffic, sales, participation, visibility, and satisfaction.
Use efficient and sustainable technologies to combine festive experiences with energy responsibility.
Would you like to transform your public spaces into memorable, illuminated destinations? Contact us today to imagine, together with your teams, an illumination project tailored to your city, your goals, and your seasons.