Total tourism expenditure

Total tourism expenditure is projected to reach $105.7 billion in 2025, representing growth of 1.3% over the previous year and marking 4.7% above the 2019 pre-pandemic peak. This performance reflects Canada's tourism sector contribution of approximately $183 billion to the economy in nominal terms while supporting 1.8 million jobs, cementing the sector's role as a critical pillar of Canadian economic activity. The modest growth rate masks significant compositional shifts, with surging domestic spending offsetting sharp declines in U.S. visitor arrivals amid ongoing trade tensions between the two countries.

The past five years witnessed the most dramatic disruption in tourism history, beginning with the near-total collapse in 2020. Tourism expenditure plummeted 50.0% to just $50.5 billion as COVID-19 lockdowns, border closures, and travel restrictions eliminated the vast majority of both domestic and international tourism activity. This $50.5 billion loss in a single year exceeded the combined impact of all previous tourism downturns including SARS (2.8% decline in 2003), the financial crisis (2.3% decline in 2009), and regional conflicts.

Recovery began tentatively in 2021 with growth of 10.8% to $56.0 billion as vaccination programs enabled gradual reopening, though activity remained 44.6% below 2019 levels. The sector surged 56.3% in 2022 to $87.5 billion as most travel restrictions were lifted and pent-up demand was released, followed by another 15.3% jump in 2023 to $100.8 billion that brought expenditure essentially back to pre-pandemic levels. This V-shaped recovery trajectory proved faster than initially anticipated, with the sector achieving 2019 parity a full year earlier than projected in 2022 forecasts.

Tourism spending in 2024 advanced 3.5% to $104.4 billion, representing the first year of genuine growth beyond pandemic recovery as the sector transitioned from rebuilding to expansion mode. Full-year 2024 saw Canadian residents take 330.8 million trips—292.1 million domestic and 38.7 million international—marking a 3.7% increase over 2023, with total tourism spending reaching $127.7 billion in nominal terms including both domestic and international outlays. The tourism sector contributed $41.0 billion directly to Canada's GDP in 2024, accounting for 1.8% of overall GDP and establishing itself as one of the fastest-growing sectors in the economy.