Canada's Tourism Boom Extends Beyond Cities, Signals Strong Recovery

By Thomas Moore

Canada experienced a remarkable summer tourism season in 2025, shattering expectations and signaling a robust recovery for the nation's travel sector. While headline numbers boast a record $59 billion in tourism revenue – a 6% increase year-over-year – a deeper dive reveals a more nuanced story: a shift in tourist behaviour and a broadening of economic benefits beyond traditional urban hubs.

Driven by a resurgence in domestic travel and a steady influx of international visitors, Canada's tourism sector has not only rebounded from the pandemic but is demonstrating signs of sustainable growth. The figures, released by Destination Canada and corroborated by Statistics Canada, paint a picture of a sector adapting to changing traveller preferences and benefiting communities across the country.

Beyond the Big Cities: A Shift in Tourist Destinations

Traditionally, Canada’s tourism revenue has been concentrated in major cities like Toronto, Vancouver, and Montreal. However, 2025 saw a marked increase in tourism activity in smaller towns, rural areas, and previously overlooked regions – particularly in Atlantic Canada. Nova Scotia and Prince Edward Island, for example, saw tourism revenue increases of 12% and 15% respectively, defying the national average.

“We're seeing a real hunger for authentic experiences,” says a tourism industry analyst. “Travellers are increasingly looking to get off the beaten path, explore local cultures, and connect with nature. This is driving demand for destinations that offer something different from the typical urban getaway.”

This shift is attributed to several factors, including a growing desire for outdoor adventures, the rise of remote work allowing for longer trips, and an increased focus on sustainable and responsible travel. The availability of high-speed internet in many rural areas has also played a role, allowing remote workers to enjoy the benefits of a smaller town lifestyle without sacrificing connectivity.

Domestic Travel Fuels the Recovery

While international tourism is rebounding, domestic travel has been the primary driver of Canada’s tourism recovery. The 7% increase in domestic spending underscores the importance of Canadian travellers in supporting the nation’s tourism businesses. This surge in local exploration is, in part, a result of travel restrictions during the pandemic, which encouraged Canadians to discover their own backyard.

“Canadians have always loved to travel, but the pandemic forced us to reassess our priorities,” explains a travel blogger specializing in domestic destinations. “We realized there's so much to see and do right here in Canada, and many of us are continuing to explore our own country even as international travel becomes more accessible.”

This trend is benefiting a wide range of tourism businesses, from small bed and breakfasts and locally-owned restaurants to outdoor adventure companies and cultural attractions.

Challenges and Sustainability

Despite the positive outlook, Canada’s tourism sector faces several challenges. Rising inflation, labour shortages, and the need to address the environmental impact of tourism are all pressing concerns.

“We need to ensure that tourism is sustainable in the long term,” says a representative from a national environmental organization. “This means investing in eco-friendly infrastructure, promoting responsible tourism practices, and protecting Canada’s natural resources.”

Efforts are underway to address these challenges. Destination Canada is actively promoting sustainable tourism initiatives, and many tourism businesses are adopting eco-friendly practices, such as reducing waste, conserving water, and using renewable energy.

Competition and Global Trends

Canada’s tourism sector operates within a competitive global landscape. The United States and Mexico are both experiencing strong tourism growth, and European destinations are also attracting a significant number of international visitors. According to the UNWTO World Tourism Barometer, global tourism is recovering, but at an uneven pace.

“Canada needs to differentiate itself from other destinations,” explains a tourism marketing expert. “We need to highlight our unique strengths, such as our stunning natural landscapes, vibrant culture, and commitment to sustainability.”

Looking Ahead

The outlook for Canada’s tourism sector remains positive. With continued investment in sustainable tourism practices, a focus on attracting both domestic and international visitors, and a commitment to providing authentic and memorable experiences, Canada is well-positioned to maintain its position as a leading global tourism destination.

“The pandemic forced us to rethink how we approach tourism,” says an industry observer. “We've learned that resilience, sustainability, and a focus on quality over quantity are key to long-term success. If we embrace these principles, Canada's tourism sector will continue to thrive for years to come.”

The record-breaking summer of 2025 serves as a testament to the enduring appeal of Canada as a travel destination and the resilience of the nation's tourism industry. It’s a story not just of economic recovery, but of a sector adapting to a changing world and embracing a more sustainable and inclusive future.