Canadian domestic tourism surges as GDP contribution reaches 1.77% in Q2 2025

Tourism in Canada experienced robust growth in the second quarter of 2025, with GDP increasing by 1.3%, significantly outperforming the broader economy, which contracted by 0.2%. This growth was primarily driven by a 2.9% increase in domestic tourism spending, as Canadians opted for local destinations over international travel, particularly in the United States. According to recent consumer surveys, 34.8% of Canadians planned to increase their domestic vacation spending, while 55.1% intended to reduce their U.S. travel expenses. Accommodation services led sectoral growth at 2.4%, contributing to tourism's increased share of nominal GDP, now at 1.77% compared to 1.75% in Q1.

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