Canada’s Travel & Tourism sector is forecast to set a new record in 2025, contributing almost $183BN to the economy and continuing the country’s impressive growth streak, according to new data from the World Travel & Tourism Council.
WTTC’s latest Economic Impact Research (EIR) reveals that the sector is also set to support 1.8MN jobs this year, representing a “a major milestone that cements tourism’s role as a pillar of the Canadian labour market and reflects a continued strength in the sector.”
But while the overall picture is positive, the Council warns that global dynamics are shifting, and Canada will need to remain proactive to retain momentum as international travel patterns are evolving.
Domestic growth holds steady, but international flow is in flux
Canada’s tourism economy has benefitted from a stable and growing domestic market. In 2025, domestic visitor spending is projected to reach nearly $104BN, more than double the year-on-year growth last year (8.3%).
International visitor spending is continuing to recover, forecast to hit $34BN, just 2.9% below 2019 levels. Although still behind when other major destinations are already exceeding their pre-pandemic levels, it is gaining ground fast with predicted year-on-year growth of 17.5%.
Julia Simpson, WTTC President & CEO, said, “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.”
Changing winds
Crucially, 71% of Canada’s inbound arrivals in 2024 came from the United States, and 52% of outbound travel by Canadians went the same direction. But that deep reliance on one market is under strain. With Canadian sentiment cooling amid U.S. political rhetoric and policy friction, Canadians are beginning to look further afield.
Visitors from the U.S. could see a reduction due to current political differences between the two countries and see less travel to Canada from international visitors to North America, hoping to visit both countries in the same visit.
According to data from Statistics Canada, flight arrivals from the U.S. to Canada were down in February and April this year, with a slight increase in March. Land arrivals were down in all three months, and more than 10% below in March and April. This downward trend indicates a concerning pattern of decline from Canada’s top source market.
Looking ahead to 2035
WTTC forecasts that by 2035, Canada’s Travel & Tourism sector will contribute $233.5BN to the national economy, 6.3% of GDP, and support more than 2.1MN jobs.
International visitor spending is projected to reach $40BN, with domestic spending forecast to surge to over $132BN, reinforcing Canada’s long-term opportunity if the sector continues to invest in sustainable growth and global competitiveness.
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