Tourism started in the early 19th century and has been a vital part of the local economy since that time. The falls became known as a natural wonder, in part to their being featured in paintings by prominent American artists of the 19th century such as
Albert Bierstadt. Such works were reproduced as lithographs, becoming widely distributed. Niagara Falls marketed itself as a
honeymoon destination, describing itself as the "honeymoon capital of the world". Its counterpart in New York also used the moniker. The phrase was most commonly used in brochures in the early twentieth century and declined in usage around the 1960s. With a plentiful and inexpensive source of
hydroelectric power from the waterfalls, many electro-chemical and electro-metallurgical industries located there in the early to mid-20th century. Industry began moving out of the city in the 1970s and 80s because of economic
recession and increasing global competition in the manufacturing sector. Tourism increasingly became the city's most important revenue source. Recent development has been mostly centred on the Clifton Hill and Fallsview areas. The Niagara Falls downtown (Queen Street) is undergoing a major revitalization; the city is encouraging redevelopment of this area as an arts and culture district. The downtown was a major centre for local commerce and night life up until the 1970s, when the Niagara Square Shopping Centre began to draw away crowds and retailers. Since 2006, Historic Niagara has brought art galleries, boutiques, cafés and bistros to the street. Attractions include renovation of the Seneca Theatre. In 2004, several tourist establishments in Niagara Falls began adding additional fees to bills. Hotels specifically charge a Municipal Accommodation Tax (MAT) fee, a percentage of which goes to the city. Fees that are present elsewhere only benefit the owners of the business itself, leading to these fees being criticized as deceptive. Some tourists have effectively fought the additional charge, while other businesses have enforced it as mandatory.
Comparison to Niagara Falls, New York In the 20th century, there was a favourable exchange rate when comparing Canadian and U.S. currencies.
Niagara Falls, New York, struggles to compete against Niagara Falls, Ontario; the Canadian side has a greater average annual income, a higher average home price, and lower levels of vacant buildings and blight, as well as a more vibrant economy and better tourism infrastructure. The population of Niagara Falls, New York fell by half from the 1960s to 2012. In contrast, the population of Niagara Falls, Ontario more than tripled. The
Ontario government introduced legal
gambling to the local economy in the mid-1990s.
Casino Niagara precipitated an economic boom in the late 1990s as numerous luxury hotels and tourist attractions were built, and a second casino,
Niagara Fallsview, opened in 2004. Both attracted American tourists due in part to the comparatively less expensive Canadian dollar, and despite the opening of the
Seneca Niagara Casino on the American side. When the Canadian and US currencies moved closer to parity in the 2000s, Niagara Falls, Ontario continued to be a popular destination for Americans, while Niagara Falls, New York, experienced a prolonged economic downturn. Ontario's legal
drinking age is 19, which attracts potential alcohol consumers from across the border, as the American drinking age is 21. ==Arts and culture==