CANADIAN IMMIGRATION NEWS DIGEST

Canada’s Tourism Sector Sees Domestic Growth Amid Decline in International Visits – Q1 2025

In Q1 2025, Canada’s tourism industry showed mixed performance, with notable strength in domestic activity offsetting weaker international engagement. According to Statistics Canada, domestic tourism expenditures rose by 0.8% to $20.2 billion, reflecting Canadians' increased preference for local travel. In contrast, international tourism spending dropped by 2.6%, driven in part by a 12.2% decline in overnight trips by Canadians to the United States.

Despite this reduction in outbound and international travel, the tourism sector’s GDP grew by 0.5%, outpacing the national GDP growth of 0.4%. Key contributors to this growth included a 2.0% increase in accommodation services and a 1.0% rise in food and beverage services—sectors directly linked to local tourism demand.

Tourism-related employment also showed positive movement, reaching 707,400 jobs in Q1, representing 3.30% of total national employment. This growth highlights the resilience of Canada’s tourism economy amid changing travel behaviors and ongoing global uncertainties. The strong domestic travel trend supports local economies and helps offset the economic impact of reduced international visits.

As global travel patterns continue to evolve, industry analysts expect Canada to further invest in promoting local attractions and supporting regional tourism infrastructure to sustain this momentum.

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