Canada’s travel and tourism sector set to break records in 2025

International

Canada’s travel and tourism industry is expected to reach new heights in 2025, contributing nearly $183 billion to the national economy, according to fresh data from the World Travel & Tourism Council (WTTC).

This would mark an all-time high and reinforce the sector’s growing role in Canada’s economic landscape.

The WTTC’s latest Economic Impact Research (EIR) also projects that the industry will support 1.8 million jobs this year—another major milestone confirming tourism as a key pillar of Canadian employment.

However, despite these encouraging figures, the WTTC cautions that shifting global dynamics and evolving travel patterns mean Canada must remain agile to protect its growth trajectory.

Domestic demand stays strong, but international recovery remains uneven

The domestic market continues to provide a solid foundation for Canadian tourism. In 2025, domestic visitor spending is expected to approach $104 billion—an 8.3% increase over the previous year.

International visitor spending is projected to reach $34 billion, just 2.9% below pre-pandemic levels. While this still lags behind some other major destinations that have already surpassed 2019 figures, the 17.5% year-on-year growth shows a strong recovery trend.

Julia Simpson, President & CEO of WTTC, stated:

“Canada’s travel and tourism sector continues to shine globally. With record-breaking economic impact, strong job creation, and a robust domestic base, the country shows how resilient and adaptable its tourism industry can be.

But vigilance is key—international demand is shifting, and growth from key inbound markets is fragile. Now is the time to double down on smart marketing, seamless travel experiences, and long-term investment in the visitor economy.”

Growing uncertainty in cross-border travel

The close relationship between Canada and the U.S. remains central to the country’s tourism landscape. In 2024, 71% of international arrivals came from the U.S., and over half of outbound Canadian travel headed in the same direction.

However, recent political tensions and shifting public sentiment could alter that balance. A cooling in Canadian attitudes toward U.S. travel may lead to more Canadians looking to destinations beyond their southern neighbor. At the same time, inbound interest from U.S. visitors and international tourists seeking multi-country North American trips may decline.

Recent Statistics Canada data reflects this trend: U.S. air arrivals to Canada dipped in February and April 2025, with only a slight increase in March. Land border crossings declined in all three months, falling more than 10% in March and April—a potentially worrying sign for Canada’s most important source market.

2024 in review

In 2024, the sector added nearly $169 billion to Canada’s GDP and supported 1.7 million jobs. Domestic travel spending totaled $95.7 billion, while international spending reached $28.9 billion.

These figures highlight a strong base but also underline the need for continued efforts to attract international travelers through effective policy, marketing, and investment.

Outlook to 2035

Looking further ahead, WTTC forecasts that Canada’s travel and tourism industry will contribute $233.5 billion to the economy by 2035—around 6.3% of national GDP—and support over 2.1 million jobs.

International visitor spending is projected to hit $40 billion, with domestic spending exceeding $132 billion. These projections point to significant long-term potential if the sector continues to embrace sustainable growth and global competitiveness.

For more details and access to the full factsheet, including WTTC’s latest Environmental Social Research (ESR), please visit the WTTC Research Hub.