Tourism gross domestic product (GDP) rose 1.3 per cent in the second quarter of 2025, according to new data released by Statistics Canada, outpacing most other sectors of the economy during the period.
The increase was driven by gains in accommodation services, which rose 2.4 per cent, along with broad-based growth across all other tourism-related industries. Food and beverage services were up one per cent, while transportation reversed a previous decline with a 0.9 per cent increase.
Tourism GDP accounted for 1.77 per cent of nominal GDP in the second quarter, up slightly from 1.75 per cent in the previous quarter. In contrast, economy-wide real GDP by industry fell 0.2 per cent.
Total tourism spending rose 0.9 per cent in the second quarter, following a 0.2 per cent decrease in the first quarter. This growth was supported by a 2.9 per cent increase in domestic tourism spending, which totalled $20.6 billion.
Spending by international visitors to Canada, however, declined by 5.3 per cent in the quarter. This followed a 1.7 per cent drop in the first quarter and was driven by reductions in all tourism products, including non-tourism products (-8.7 per cent), accommodation (-5.1 per cent) and food and beverage services (-6.5 per cent).
Overnight travel to Canada by international visitors was down 6.9 per cent, with travel from the United States falling 10.2 per cent.
Statistics Canada noted that Canadians increasingly opted to travel within the country. “Tourism spending in Canada by Canadian residents was up a notable 2.9% in the second quarter of 2025, after increasing 0.3% in the previous quarter,” the agency stated. The agency added that this trend “coincides with a 13.0% decline in Canadians returning from overnight trips to the United States.”
According to the Canadian Survey of Consumer Expectations, 34.8 per cent of Canadians planned to spend more while vacationing in Canada, while 55.1 per cent planned to spend less while vacationing in the United States.
Domestic tourism spending was led by accommodation services (+6.5 per cent), non-tourism products (+4.2 per cent) and food and beverage services (+3.9 per cent). Travel services (-5.5 per cent) and vehicle rentals (-2.2 per cent) were the only categories to register declines.
Employment in tourism-related industries also grew in the second quarter. “The number of jobs attributable to tourism increased 0.6% in the second quarter of 2025, following a 0.2% gain in the first quarter,” Statistics Canada reported.
Food and beverage services posted a 0.8 per cent increase in employment, while recreation and entertainment saw a 1.4 per cent gain. Job growth in accommodation services was flat. In total, tourism employment reached 712,100 jobs, representing 3.34 per cent of all jobs in the economy, up from 3.32 per cent in the previous quarter.
Looking ahead, the agency noted that arrivals by air from non-residents increased year over year in July and August, while land arrivals declined. Fewer Canadians travelled abroad by air or land over the same period.
Tourism also contributed to government revenues in 2024, generating $32.7 billion, a 5.1 per cent increase from 2023. Domestic tourism accounted for 75.8 per cent of that total. Taxes on final tourism products accounted for $16.7 billion of revenue, followed by corporate and individual income taxes related to tourism business activity at $7.7 billion.
“Every $100 in tourism spending generated $25.21 in government revenue, up 0.8% from 2023,” the agency said.
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