Canadian tourism sector is celebrating a memorable summer. From British Columbia’s misty fjords to the sunny shores of Prince Edward Island, the nation’s hospitality sector truly thrived in 2025. Destination Canada’s latest data indicates a whopping $59 billion in tourism revenue from May to August, which is about a 6 percent increase from 2024. Suffice to say, it’s now the most profitable summer on record.
For the many guides, innkeepers, and others who keep Canadian tourism industry moving, it wasn’t just busy, but profitable. The report humorously notes, “Tourism workers will remember this summer fondly,” suggesting imagery of full patios and other attractions. However, amid the overall excitement, a small issue arose: a 1.7 percent decrease in spending from U.S. tourists. This might be due to exchange rates or perhaps a surge in domestic travel options in USA.
Canadians Exploring Their Own Country
What really drove the surge? Canadians choosing to vacation at home. Domestic tourism spending jumped about 7 percent. Think of families choosing local parks over overseas trips, young adults exploring craft breweries in Niagara, and retirees enjoying the scenic drives of Nova Scotia. This homegrown enthusiasm more than compensated for the drop in American tourists, demonstrating that in uncertain times, familiarity equals cash flow.
“We’ve witnessed more bookings from targeted international markets, not to mention interest from Canadians eager to explore their own country,” commented Joe Amati, a Destination Canada executive, during a recent briefing. “We’ve noted this positive trend since the start of the year.” Early indicators of wanderlust – like increased searches for Yukon’s midnight sun or Quebec’s lavender fields – became a summer trend. Destination Canada credits this early optimism for the industry’s sustained success.
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Overseas Enthusiasm Offsets Yankee Blues
Although tourism from the United States declined, international travel filled the gap. Revenue from international tourists remained strong, with visits from travelers from overseas – such as visitors from Britain exploring the Rockies, Australians in the Northwest Territories to see the aurora borealis, and Europeans captivated by Alberta’s glaciers – generating a 10 percent increase in revenue. These travelers contributed fresh energy to both cities and more remote areas, from Vancouver’s seawall to the Maritimes’ famed lobster dinners.
The proof was really in hotel bookings. Hotels across Canada were almost at full capacity, with August ending with a national occupancy rate of about 80.7 percent – the highest since before the pandemic. Famous spots in Toronto and Banff reported almost constant full bookings, while smaller hotels elsewhere also experienced a boost.