Total tourism expenditure

Total tourism expenditure is projected to reach $107.7 billion in 2026, representing 1.3% growth over the previous year and marking 6.6% above the 2019 pre-pandemic peak. This performance reflects Canada's tourism sector contribution of approximately $183.0 billion to the economy in nominal terms while supporting approximately 2.2 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 have witnessed the most dramatic disruption in tourism history, beginning with a major recovery from the pandemic collapse. Tourism expenditure began to normalize with a 10.7% increase in 2021, as vaccination programs enabled a gradual reopening. As most pandemic travel restrictions were lifted and pent-up demand was released, spending on tourism skyrocketed by 56.3% in 2022, the largest single-year increase of $31.5 billion. 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. In 2025 and 2026, growth tempered but remained positive, rising by 1.2% and 1.9%, respectively. Canadian residents took 43.3 million international trips in 2025 and 267.1 million domestic trips through Q3 2025.