Shifts in International Travel Patterns Challenge Canadian Tourism Despite Record Growth in 2025

Canada’s travel and tourism sector is projected to reach record economic contributions by 2025, but international travel dynamics pose emerging challenges.

Economic Projections for 2025

Canada’s travel and tourism sector is forecasted to contribute nearly $183 billion to the national economy in 2025, according to the World Travel & Tourism Council (WTTC). This projection sets a new record for the sector, which is also expected to support 1.8 million jobs. These figures highlight the sector’s significant role in the Canadian labor market and its ongoing growth trajectory.

Domestic and International Spending Trends

The domestic tourism market in Canada remains robust, with domestic visitor spending projected to reach nearly $104 billion in 2025. This represents more than double the growth rate from the previous year. International visitor spending is also recovering, forecasted to reach $34 billion, which is 2.9% below 2019 levels. Despite being behind some major destinations that have surpassed pre-pandemic levels, international spending is expected to grow by 17.5% year-on-year.

Dependence on the U.S. Market

A significant portion of Canada’s inbound travel, 71% in 2024, originated from the United States. Similarly, 52% of outbound travel by Canadians was directed towards the U.S. However, political and policy tensions between the two countries may be affecting travel patterns. Data from Statistics Canada indicates a decline in flight and land arrivals from the U.S. in early 2024, suggesting potential challenges in maintaining this key market.

2024 Performance

In 2024, the travel and tourism sector contributed just under $169 billion to Canada’s economy, supporting 1.7 million jobs. Domestic visitor spending reached $95.7 billion, while international spending totaled $28.9 billion. These figures demonstrate a strong foundation but also underscore the need for strategic policies to foster further growth, especially in international markets.

Long-Term Outlook to 2035

Looking ahead, the WTTC forecasts that by 2035, Canada’s travel and tourism sector will contribute $233.5 billion to the economy, accounting for 6.3% of GDP, and support over 2.1 million jobs. International visitor spending is projected to reach $40 billion, with domestic spending expected to exceed $132 billion. These projections suggest significant long-term opportunities if the sector continues to invest in sustainable growth and competitiveness on a global scale.