Wednesday, August 6, 2025
In a significant boost for Canada’s economy, the travel and tourism sector is set to hit record levels in 2025, as revealed by the World Travel & Tourism Council (WTTC). According to the latest data, the sector’s contribution to Canada’s economy is forecast to reach a remarkable $183 billion, establishing a new high point for the country. This growth is bolstered by the sector’s ability to support 1.8 million jobs, solidifying its status as a cornerstone of Canada’s labor market. The increasing trend of domestic tourism and the resurgence of international travel is set to drive this exceptional expansion. However, as travel patterns shift globally, the country will need to adapt its strategies to maintain its upward trajectory.

Key Highlights

• $183 Billion Contribution: Canada’s tourism sector is forecast to reach a new record, contributing $183 billion to the economy in 2025.
• 1.8 Million Jobs: The industry supports approximately 1.8 million jobs, cementing tourism’s role as a significant pillar of the labor market.
• Growth in Domestic Tourism: Domestic visitor spending is projected to grow by 8.3%, reaching nearly $104 billion in 2025.
• Recovery in International Travel: International visitor spending is expected to hit $34 billion, showing strong recovery with a 17.5% year-on-year growth.
• Strategic Challenges: While Canada remains on track for growth, evolving international dynamics and political changes may impact future visitor numbers, especially from the U.S.

Canada’s Travel & Tourism Outlook: A Positive but Cautious Forecast

Canada’s travel and tourism sector is experiencing one of its most robust growth periods. The country’s natural beauty, vibrant cities, and rich cultural heritage have made it a prime destination for both domestic and international tourists. The country’s overall economic contribution from tourism is projected to be a staggering $183 billion in 2025, a figure that reflects an impressive growth trend across several years.

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Domestic tourism, a major contributor to this economic surge, is showing promising signs of sustained expansion. Canadians are increasingly spending more on leisure, business, and travel within their own borders. In 2025, domestic spending is forecast to reach $104 billion, reflecting a significant increase from previous years.
On the international front, Canada’s tourism sector is also rebounding, with international visitor spending expected to grow by 17.5% year-on-year, reaching $34 billion. This is a clear indicator that Canada’s appeal as an international destination is regaining strength, although still slightly behind pre-pandemic levels. While Canada is benefiting from international interest, particularly from countries such as the U.S., Europe, and Asia, it faces new challenges that could impact the steady flow of visitors.

Economic Resilience and Job Growth

A major contributor to the Canadian economy, tourism has been resilient in the face of global economic challenges. In 2025, the sector will support approximately 1.8 million jobs, cementing its importance as a significant employer across the country. This includes positions in hospitality, transportation, event management, and many other related industries.
The tourism sector is becoming a pillar of Canada’s job market, offering stable and sustainable employment opportunities. From coast to coast, major cities like Toronto, Montreal, and Vancouver benefit from international visitors who bring significant economic activity. Even smaller cities, such as Banff and Jasper, thrive on tourism, with natural attractions that draw nature lovers and adventure seekers from all over the world.

Domestic Travel: A Booming Market

Domestic tourism has seen an upward trajectory, with Canadians showing an increasing interest in exploring their own country. Spending by domestic visitors is projected to grow by 8.3% year-on-year, indicating a strong desire to experience Canada’s vast natural landscapes and cultural offerings.
Domestic travelers have been gravitating toward both urban and rural destinations, with major cities like Toronto and Vancouver seeing a boost in visitor numbers. At the same time, national parks, ski resorts, and nature retreats are also experiencing increased demand. This dynamic provides further opportunities for growth and diversification in the tourism sector, ensuring that the industry’s reach is spread across both well-established urban centers and emerging regional hotspots.

International Travel: A Growing but Fragile Market

While domestic tourism provides a solid foundation, international visitors are a key driver of growth for Canada’s tourism sector. In 2025, international visitor spending is expected to total $34 billion. This marks a notable recovery from the pandemic, though it remains just shy of pre-pandemic levels. The anticipated year-on-year growth of 17.5% signifies a strong recovery, albeit one that requires sustained effort and strategic investment.
Despite this positive outlook, Canada’s reliance on the U.S. market as a primary source of international visitors presents potential risks. In 2024, nearly 71% of inbound travel to Canada came from the United States, while 52% of Canadians traveled south. This heavy reliance on one market raises concerns, especially in light of the evolving political and economic landscape. Friction between Canada and the U.S. could lead to reduced travel between the two countries, a scenario that would impact Canada’s tourism sector.
Political tensions and policy changes, particularly in relation to immigration, tariffs, and environmental regulations, could cause American visitors to reconsider their travel plans. Furthermore, shifting consumer preferences in the U.S. could direct potential travelers to other international destinations, thus affecting Canada’s ability to sustain its growth in this critical market.

Global Shifts and Strategic Challenges

As global travel patterns shift, Canada must remain proactive to stay competitive. International markets are evolving, with tourists seeking new experiences and destinations that align with their changing preferences. In order to retain its market share, Canada will need to invest in marketing strategies that target emerging markets, improve accessibility, and enhance the overall visitor experience.
In addition, Canada must invest in infrastructure improvements, particularly around its airports, train systems, and tourism facilities. The rise of digital platforms, seamless booking experiences, and cutting-edge visitor technologies are becoming crucial components of the modern tourism industry. Leveraging these advancements will be key for maintaining momentum and attracting both first-time and repeat visitors.
WTTC President & CEO Julia Simpson highlighted the importance of investing in “smart marketing, frictionless access, and visitor experience” to ensure sustained growth. This forward-thinking approach is essential to securing Canada’s position as a top global destination.

Looking Ahead to 2035: Long-Term Projections

The future of Canada’s travel and tourism industry is bright, with the WTTC forecasting that the sector will contribute $233.5 billion to the national economy by 2035. This represents 6.3% of Canada’s GDP, an impressive figure that underscores the sector’s long-term importance.
In terms of job creation, tourism is expected to support over 2.1 million jobs by 2035, a 17% increase from 2025. International visitor spending is anticipated to reach $40 billion, while domestic spending will surge to over $132 billion. The long-term outlook for Canada’s tourism sector remains positive, provided the country continues to invest in sustainable growth and adapt to global trends.

Conclusion

Canada’s travel and tourism industry is on track to break records in 2025, with strong contributions to the economy, job growth, and an expanding domestic market. While international travel is rebounding, Canada faces the challenge of navigating evolving global dynamics and potential shifts in visitor patterns. By investing in strategic marketing, innovative technologies, and improving visitor experiences, Canada can continue to thrive as a leading global tourism destination. Looking ahead to 2035, the country’s tourism sector is poised for even greater success, with long-term growth projections reinforcing its critical role in the national economy.

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Wednesday, August 6, 2025
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