Record summer season – Canadian tourism reported $59 billion in profits

Canada’s tourism sector is celebrating a memorable summer. From the dusty regions of British Columbia to the sunshine of Prince Edward Island, the country’s hospitality sector is set to grow by 2025. The latest Canadian data shows $59 billion in tourism revenue from May to August, an increase of about 6 percent over 2024. It’s better than summer for now.

For many guides, rangers, and others who navigate Canada’s tourism industry, it’s not just busy, but rewarding. “Tourism workers will remember this summer fondly,” the report sarcastically notes, offering pictures of full patios and other attractions. However, amid the overall excitement, one small issue stood out: a 1.7 percent drop in spending by US tourists. This may be due to exchange rates or perhaps an increase in domestic travel options within the United States.

Canadians explore their country

What really increases? Canadians prefer to vacation at home. Domestic tourism spending increased by about 7 percent. Think of families who choose local parks for outdoor adventures, young adults exploring the arts and crafts in Niagara Falls, and retirees who enjoy the scenery of Nova Scotia. This domestic interest more than compensates for the decline in American tourism, demonstrating that in uncertain times, recognition equals cash.

“We’re seeing more bookings from targeted international markets, not to mention interest from Canadians eager to explore their country,” Destination Canada executive Joe Amati commented during a recent briefing. “We have noted this positive trend since the beginning of the year.” Early indicators of tourism—such as increased searches for the Yukon’s midnight sun or Quebec’s lavender fields—became summer trends. Destination Canada credits this early optimism for the industry’s continued success.

A passion for the outdoors suggests the Yankee blues

Although tourism from the United States has declined, international travel has filled the gap. International tourist arrivals remained strong, with foreign tourist arrivals strong — such as British visitors exploring the Rockies, Australians in the Northwest Territories to see the Aurora Borealis, and Europeans attracted by Alberta’s glaciers — generate a 10 percent increase in revenue. These travelers gave fresh energy to both cities and more remote areas from Vancouver Seawall to the famous lobster dinners of the Maritimes.

The proof was actually in the hotel booking. Hotels across Canada were at nearly full capacity, with the national occupancy rate at the end of August ending at about 80.7 percent — the highest since before the pandemic. Popular venues in Toronto and Banff reported near-constant full bookings, while smaller hotels experienced growth elsewhere as well.