Canada’s tourism sector will hit a record US$183 billion contribution to the economy in 2025 while supporting 1.8 million jobs, but shifting travel patterns pose risks to future growth, according to a press-release by World Travel & Tourism Council. The milestone reflects tourism’s growing importance to the country’s labor market and economic stability. However, the industry faces challenges as international travel dynamics change and political tensions affect cross-border movement.
Canada’s tourism recovery has relied heavily on domestic spending, which will reach nearly $104 billion this year with growth more than doubling last year’s rate. International visitor spending lags behind other destinations but shows strong momentum at $34 billion, just 2.9% below pre-pandemic levels.
The sector’s heavy dependence on U.S. visitors creates vulnerability, with 71% of inbound arrivals coming from America in 2024. Political friction between the countries has started affecting travel flows, with Statistics Canada data showing flight arrivals from the U.S. down in February and April 2025. Land border crossings dropped over 10% in March and April compared to previous periods. WTTC President Julia Simpson warned that “travel patterns are shifting, and inbound growth from key markets remains delicate.” She urged investment in marketing and visitor experience to maintain momentum.
The tourism council projects continued growth through 2035, when the sector could contribute $233.5 billion to Canada’s economy and support over 2.1 million jobs. International spending should reach $40 billion while domestic travel is expected to surge to $132 billion. Last year’s performance showed $169 billion in economic contribution and 1.7 million jobs, establishing a foundation for future expansion if Canada adapts to changing global travel preferences.
