Canada’s $183BN Tourism Sector Set for 2025 High, but Headwinds Emerge
Canada’s travel and tourism sector is projected to contribute nearly $183 billion to the national economy in 2025, marking a new peak in its post-pandemic growth trajectory, according to the latest Economic Impact Research (EIR) from the World Travel & Tourism Council (WTTC).
The sector is projected to create 1.8 million jobs this year, highlighting its crucial role in the Canadian labour market and national economic recovery.
Domestic Growth Remains Stable; International Trends in Transition
The sector’s momentum is primarily driven by strong domestic travel. Domestic visitor spending is forecast to reach almost $104 billion in 2025—an 8.3% increase over last year.
Meanwhile, international visitor spending is projected to reach $34 billion, which is just 2.9% below 2019 levels. Although Canada still trails behind other global destinations in this recovery area, international spending is growing at an encouraging 17.5% year-on-year pace.
Julia Simpson, WTTC President & CEO, said:
“Canada’s Travel & Tourism sector continues to perform steadily with job creation and economic gains. However, the country must stay alert to evolving travel trends. Strategic investment in marketing, accessibility, and visitor experience will be key to maintaining growth.”
Caution over U.S. Dependency
In 2024, 71% of Canada’s inbound arrivals came from the United States, while 52% of outbound travel by Canadians also went south. This reliance may be at risk due to shifting political rhetoric and policy differences.
According to Statistics Canada, air arrivals from the U.S. decreased in February and April, with a slight increase in March. Land crossings declined across all three months, showing a year-on-year decrease of over 10% in March and April.
These indicators suggest a potential weakening of Canada’s primary tourism corridor, which may impact both inbound and outbound flows.
2024 Snapshot and Long-Term Outlook
In 2024, the sector contributed just under $169 billion to the economy and supported 1.7 million jobs. Domestic visitor spending stood at $95.7 billion, while international visitor spending reached $28.9 billion.
Looking ahead to 2035, WTTC forecasts the sector will generate $233.5 billion—6.3% of GDP—and support over 2.1 million jobs. Domestic spending is expected to exceed $132 billion, while international spending is projected to reach $40 billion.
To meet these projections, experts emphasise the need for strategic investments in infrastructure, market diversification, and sustainability to ensure long-term resilience in a rapidly changing global travel landscape.
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