Canada’s tourism sector is forecast to reach $183B in 2025 and support 1.8M jobs, but global travel shifts pose risks, warns WTTC.
Tourism Sector Set for Record-Breaking Year
Canada’s travel and tourism sector is on track to contribute a record $183 billion to the national economy in 2025, according to the World Travel & Tourism Council (WTTC). The organization’s latest Economic Impact Research shows a surge in both domestic and international visitor spending, underscoring tourism’s critical role in Canada’s economic recovery and long-term growth.
Jobs and Economic Contributions Surge
The tourism sector is expected to support 1.8 million Canadian jobs this year—an increase from 1.7 million in 2024. This growth reflects strong domestic demand and a steady rebound in international tourism, positioning the sector as one of the largest employers in the country. Julia Simpson, President & CEO of WTTC, praised Canada’s resilience, saying, “With record economic contribution and job creation, the country is proving just how adaptable its sector can be.”
Domestic Travel Leads the Charge
Domestic visitor spending is projected to hit nearly $104 billion in 2025—more than double the 8.3% year-over-year growth seen last year. Canadians are continuing to explore their own country, contributing to stable internal demand. The consistency of this trend is providing a strong base for the industry as it navigates ongoing global uncertainty.
International Travel Gains Ground, Slowly
International visitor spending is forecast to reach $34 billion in 2025—just 2.9% shy of 2019 pre-pandemic levels. Although the rebound has lagged behind other top travel destinations, it is accelerating rapidly with a projected 17.5% year-over-year growth. However, Canada remains vulnerable due to its high dependence on U.S. travellers, who accounted for 71% of inbound arrivals in 2024.
Shifting Trends and Rising Vulnerabilities
Recent travel data suggests a weakening trend from the U.S. market, Canada’s primary source of international visitors. Flight arrivals from the U.S. declined in February and April this year, while land arrivals fell by over 10% in both March and April. The political climate and cross-border policy friction are believed to be influencing travel sentiment, potentially driving Canadians and Americans alike to look beyond North America for leisure travel.
The Year in Review: 2024 Highlights
In 2024, the Canadian tourism sector generated $169 billion in economic activity. Domestic spending reached $95.7 billion, while international visitors contributed $28.9 billion. These figures reflect strong recovery momentum but also highlight the importance of strategic investment to sustain long-term growth, especially from international markets.
2035 Forecast Shows Long-Term Promise
Looking further ahead, the WTTC projects that by 2035 Canada’s travel and tourism sector could contribute $233.5 billion to the economy—representing 6.3% of GDP—and support over 2.1 million jobs. International visitor spending is expected to rise to $40 billion, with domestic spending forecast to surpass $132 billion, signaling robust potential if Canada stays competitive on the global stage.
Strategic Planning Urged for Sustainable Growth
Despite the promising outlook, experts warn that shifting travel patterns require proactive measures. The WTTC advises increased investment in digital infrastructure, frictionless travel processes, and global marketing to retain Canada’s edge. Simpson emphasized, “This is the time to invest in smart marketing and visitor experience to protect that momentum.”
As the tourism sector readies for a record year, maintaining balance between growth and resilience will be key to its long-term success.
2025 Mapple News Wire
