More Canadian travellers are content to roam at home.
Driving the news: New data obtained by the Globe and Mail shows that occupancy rates at Canadian hotels and short-term rentals were up by over a full percentage point last month compared to June 2024 — and this increase happened all while U.S. occupancy rates fell.
Big picture: These new stats are the latest in a batch of numbers indicating that Canadians haven’t just been paying lip service about going Elbows Up, at least when it comes to travel.
- For example, domestic tourism spending rose 4% annually in the first quarter per Destination Canada, Airbnb reported a nearly 20% increase in domestic travel searches in March, and Canadian return trips from the U.S. were down 32% in May.
- And if you want anecdotal evidence, this particular newsletter writer swapped initial foreign summer travel plans for a spa stay in scenic Niagara-on–the-Lake, Ontario.
Why it matters: Staycations are keeping Canadian tourism afloat. Last month, TD estimated that tourism spending will grow between 2% and 4% this year. That's a sizable step down from the average 15% annual post-pandemic growth rate. However, the fact that spending is up at all despite a sharp drop in U.S. visitors is a testament to domestic travellers.
Yes, but: Many Canadians have cut back discretionary spending due to economic anxiety and rising debt. While they’ve largely left travel budgets untouched, if domestic travel prices continue to rise, more would-be tourists might have to slash their plans.—QH