Canada’s tourism sector delivered a record-breaking performance in summer 2025. Generating nearly $60 billion in revenue between May and August, Canada saw a 6% year-over-year increase. Unfortunately, this record growth was not reflected in business at Canada’s land border stores, which are suffering from declines in cross border travel between the U.S. and Canada.
The number of Canadians taking road trips into the U.S dropped by 35% in September compared to September 2024, according to data from Statistics Canada. This followed a 34% drop in August.
September was the ninth consecutive month of steep declines in inbound Canadian travel to the U.S., seriously impacting the business at the land border duty free stores.
Otherwise, Canada’s record revenue was driven by a strong base of Canadian travelers, with the highest domestic growth coming from inter-provincial travel spending.
Rising international interest also powered the record summer, particularly from overseas markets, where visitor spend surged 10.4%.
Overall, visitors are spending more per trip, resulting in higher yield this summer.
Tourism activity grew in 89% of Canadian regions, with Atlantic Canada and rural destinations leading the way, outperforming even major metropolitan centers.
Key highlights:
*$59B total tourism revenue, including $44.4B from Canadians and $14.6B from international visitors;
*International visitor spending up 10%, signaling higher-value travel experiences;
*Domestic tourism spending grew 7%, with Canadians exploring across provinces;
*Hotel occupancy reached 80.7% in August, the highest since 2014;
*Standout Regional Growth:
59% of regions outperformed the average growth of Canada’s major metro areas, demonstrating a successful dispersion of tourism. Atlantic Canada, in particular, emerged as a standout performer, posting some of the highest growth rates in the country.
