Record-Breaking Growth for Canada’s Travel & Tourism in 2025 Amid Emerging Challenges

Canada’s travel and tourism sector is forecast to contribute nearly CAD 183 billion to the economy in 2025, marking a new record and continuing its impressive upward trajectory, according to the latest data from the World Travel & Tourism Council (WTTC).

WTTC’s most recent Economic Impact Research (EIR) indicates that the sector will support around 1.8 million jobs this year. This milestone reinforces tourism’s vital role within the Canadian labour market and underscores ongoing sector resilience.

However, despite the optimistic outlook, WTTC advises that global dynamics are changing. Canada must remain vigilant and proactive to maintain its growth momentum as patterns in international travel evolve.

Steady Domestic Growth, Shifting International Flows

Canada’s tourism industry has benefited from a stable and expanding domestic market. In 2025, domestic visitor expenditure is projected to reach nearly CAD 104 billion, an 8.3 per cent increase from last year, and more than doubling the growth seen annually previously.

International visitor expenditure is also recovering, expected to hit CAD 34 billion—just 2.9 per cent shy of 2019 levels. While still behind many other major destinations that have already surpassed their pre-pandemic figures, international tourism in Canada is rapidly gaining ground with an anticipated year-on-year growth of 17.5 per cent.

Julia Simpson, WTTC President & CEO, commented: “Canada’s Travel & Tourism sector continues to be a bright spot in the global economy. With record economic contribution, job creation, and a strong domestic base, the country is proving just how resilient and adaptable its sector can be."

“But Canada must remain vigilant. Travel patterns are shifting, and inbound growth from key markets remains delicate. This is the time to invest in smart marketing, frictionless access, and visitor experience to protect that momentum.”

Evolving Travel Preferences for Canadians

Significantly, in 2024, 71 per cent of inbound arrivals to Canada came from the United States, and 52 per cent of outbound travel by Canadians was directed towards the US. However, this heavy reliance on one market may be under pressure. Growing Canadian scepticism amid political tensions and policy disputes with the US suggest that Canadians are beginning to explore more distant destinations.

Current data from Statistics Canada shows a decline in flight arrivals from the US in February and April this year, with a slight rebound in March. Land arrivals during these months also decreased, being more than 10 per cent below previous levels in March and April. This trend raises concerns about Canada’s primary source market.

A Look Back at 2024

Last year, the sector contributed just under CAD 169 billion to the economy and supported approximately 1.7 million jobs. Domestic visitor expenditure reached CAD 95.7 billion, while international visitor spending totalled CAD 28.9 billion.

While these figures demonstrate a solid foundation, they also highlight the need for strategic policy and investment to foster further growth, especially in international markets.

Projections for 2035

WTTC forecasts that by 2035, Canada’s Travel & Tourism sector will generate CAD 233.5 billion—about 6.3 per cent of GDP—and support over 2.1 million jobs.

International visitor expenditure is expected to reach CAD 40 billion, with domestic spending projected to soar above CAD 132 billion. These figures reinforce the sector’s long-term potential, provided continued focus on sustainable growth and global competitiveness.