Canada’s tourism industry is projected to continue expanding through the next decade, with total tourism revenue expected to reach CAD 216.3 billion by 2035, according to Destination Canada’s Canadian Tourism Outlook 2026–2035 prepared in partnership with Tourism Economics.
The report forecasts that tourism spending in Canada will increase by 6% in 2026, exceeding earlier projections and continuing momentum following a record summer tourism season in 2025.
Tourism Growth Outpacing Wider Economy
Destination Canada said the tourism sector is growing faster than previously expected and remains one of the country’s most important service export industries.
The organisation estimates tourism already supports one in 10 jobs across Canada while generating more than CAD 364 million in daily economic activity for local communities.
In 2024, tourism contributed CAD 32.7 billion in municipal, provincial and federal tax revenue.
According to the report, Canada is competing for a larger share of the global international tourism market, which is estimated to be worth USD 2.1 trillion in visitor spending.
Domestic Travel Supporting Short-Term Growth
One of the main drivers behind the improved outlook is increased domestic travel spending by Canadians choosing to holiday within the country.
Destination Canada estimates reshored domestic tourism spending will contribute an additional CAD 1.5 billion in 2025 and around CAD 4.4 billion between 2025 and 2027.
The organisation said this trend is providing an immediate economic boost across multiple regions and tourism sectors.
International Markets Expected To Accelerate
The United States remains Canada’s largest international tourism market, with spending from American visitors forecast to grow by 5.3% annually.
Higher-value air travel is expected to become a stronger contributor to tourism revenue growth compared with land and sea arrivals.
At the same time, overseas tourism markets are forecast to grow at an even faster pace of 9.8% annually through 2035, helping diversify Canada’s tourism demand across regions and seasons.
Business Events Seen As Economic Opportunity
The report also identified international business events as a major high-value growth area for the tourism sector.
Association events hosted in Canada are projected to reach 132% of 2019 levels by 2028, while delegate volumes are expected to reach 118% of pre-pandemic levels.
Destination Canada said business events help generate wider economic benefits including trade opportunities, investment attraction and talent development.
The organisation recently received additional federal support for its International Convention Attraction Fund, which has already helped secure 116 international events generating more than CAD 800 million in direct economic impact.
Canada’s Global Reputation Supports Tourism Demand
Destination Canada said the country’s international reputation for stability, openness and safety is strengthening its position within the global tourism market.
Canada ranked first alongside Switzerland in the RepCore Nations 2025 rankings and third in the 2025 Anholt Nation Brand Index.
The agency believes these rankings, combined with continued investment in tourism promotion and international events, create strong long-term growth potential for the sector.
