Canada’s Tourism Sector Hits Milestone with Nearly Sixty Billion Dollars in Revenue for Summer 2025, Reflecting Strong Growth in Both Local and International Travel

Canada’s tourism sector has reached a new milestone, with the summer of 2025 bringing in a remarkable $59 billion in revenue between May and August. This represents a six per cent increase over the same period last year, as reported by Destination Canada. The boost in revenue highlights the country’s enduring appeal as a premier destination for both domestic and international travelers.

Domestic Tourism on the Rise

A key contributor to this record-breaking revenue has been the rise in domestic tourism. Canadians have increasingly chosen to explore their own country, with domestic tourism seeing a seven per cent increase. With the natural beauty of its diverse landscapes and rich cultural experiences, Canada has become a preferred choice for Canadians to vacation within their own borders.

This trend is not just benefiting major tourist spots, but also smaller and remote areas. Many of Canada’s rural regions have seen significant growth in tourism, which has directly supported local businesses. This surge in domestic travel has not only contributed to the overall tourism revenue but also provided a boost to local economies, creating jobs and stimulating businesses in areas that are often overlooked by international visitors.

International Visitors Contribute to Record-Breaking Revenue

In addition to the growth in domestic tourism, Canada has also seen a strong performance from international markets. The summer of 2025 saw a 10 per cent increase in spending from overseas visitors. Canada continues to attract travelers from around the world, drawn by its world-renowned natural beauty, vibrant cities, and welcoming atmosphere.

The majority of international visitors came from markets in Europe, the United States, and Asia, underscoring Canada’s global appeal. As the world continues to recover from the pandemic, international travel has rebounded strongly, and Canada has capitalized on this trend, with visitors eager to explore its vast landscapes and unique cultural experiences.

Hotels and Accommodations in High Demand

The tourism boom has been reflected in the accommodation sector, where hotel occupancy rates reached 80.7 per cent in August 2025—the highest level since 2014. The influx of both domestic and international travelers has kept Canadian hotels busy, particularly in major cities and popular tourist regions. From luxury resorts to boutique hotels, Canada’s accommodations sector has been running at full capacity, reflecting the high demand for lodging during the summer months.

This high demand for accommodation has provided a significant boost to the hospitality industry, with businesses across the country benefiting from the uptick in visitors. The increased revenue from the hotel industry has, in turn, supported other sectors such as food and beverage services, transportation, and entertainment, further solidifying the positive economic impact of tourism.

Regional Growth, with Atlantic Canada Leading the Way

Canada’s tourism success has not been confined to its larger cities. In fact, 89 per cent of regions across the country reported year-over-year growth, with Atlantic Canada seeing some of the highest growth rates. The picturesque coastal provinces, known for their stunning landscapes, charming villages, and rich maritime culture, have become increasingly popular with both Canadian and international visitors.

Atlantic Canada’s growth reflects a broader trend of increasing interest in rural and less-explored regions, as travelers seek quieter, more scenic destinations away from the hustle and bustle of larger cities. The rise in tourism in these areas is also providing significant benefits to local economies, helping small communities thrive and continue to offer authentic, unique experiences.

Adventure and Outdoor Tourism Flourish

Adventure tourism has also seen a significant uptick, with outdoor activities such as hiking, cycling, and guided tours attracting both domestic and international visitors. Operators offering outdoor experiences have reported higher bookings, particularly in the country’s national parks and rural areas. The increase in adventure tourism has also helped to distribute the benefits of tourism more evenly across Canada, as visitors flock to the wilderness to experience Canada’s breathtaking landscapes.

The growing demand for outdoor adventures highlights a broader global trend toward eco-tourism and sustainability. Travelers are increasingly seeking immersive nature experiences, and Canada’s vast wilderness, clean air, and diverse wildlife continue to be a major draw for those looking to reconnect with nature.

Looking Toward the Future of Canada’s Tourism Industry

The future of Canada’s tourism sector looks promising, with expectations for continued growth in the coming years. As international markets continue to rebound and Canadians maintain their love for domestic travel, the tourism industry is well-positioned to remain a major economic contributor.

Businesses across the tourism sector, from hotels and airlines to local tour operators and attractions, are already preparing for the busy seasons ahead, with advanced bookings filling up quickly for 2026. The government’s ongoing investment in infrastructure, sustainability, and the overall visitor experience is expected to further strengthen Canada’s position as a top global destination.

Conclusion

The summer of 2025 will be remembered as a transformative period for Canada’s tourism industry. The record-breaking $59 billion in revenue, driven by strong domestic and international tourism, underscores the country’s appeal as a leading global destination. With high hotel occupancy rates, regional growth, and a boom in outdoor and adventure tourism, the Canadian tourism industry is poised for continued success in the years to come. As the world reopens and travel continues to thrive, Canada’s tourism sector stands ready to welcome even more visitors in the future.

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