Even with fierce competition from luxurious Euro trips and beachside all-inclusives, Canada came out of vacation season as the big winner.
Driving the news: Tourists spent a record-high $59 billion across Canada between May and August this year, driven by a surge in domestic travel and international tourists favouring destinations in Canada over the U.S.
- Hotel bookings were up across the country. In August, the national hotel occupancy reached 80.7%, the highest mark in over a decade.
Why it’s happening: The record-breaking tourism season is a testament to domestic travellers, even as many had to cut discretionary spending. Thanks in large part to Canadians exploring other provinces, 89% of the country saw an annual jump in tourism spending.
Zoom out: Canada has certainly benefited from other countries shunning U.S. travel. International air travel to the U.S. is down 7% from 2024, with the country’s tourism sector expected to lose ~US$12.5 billion in visitor spending this year.
- Meanwhile, Canada has seen a 9.2% annual jump in overseas visitors, with tourists from Europe and Asia driving the surge.
Why it matters: With other parts of Canada’s economy reeling from U.S. tariffs, this summer was a much-needed win for a tourism sector that had been slow to get back on its feet after the pandemic.—LA