Canada Travel And Tourism Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Canada Travel And Tourism Market Trends and Insights

E-Visa and eTA expansion boosting long-haul arrivals

Streamlined electronic authorizations shorten lead times for visas and spur spontaneous trips, especially from emerging markets in Asia and Latin America. Visits to Canada’s territories climbed to 180,000 in Q2 2024, up from 152,000 a year earlier, with spending hitting USD 127.7 million—evidence that digital entry points translate into tangible visitor flows. Airports in Vancouver, Toronto, and Montreal are the immediate beneficiaries, yet the revenue ripple reaches secondary cities via extended itineraries linking rail and coach transport. Policy alignment with G7 peers positions the Canada travel and tourism market for competitiveness gains through 2030.

Federal Tourism Growth Strategy 2030 capital investments

The USD 108 million Tourism Growth Program multiplies regional GDP by financing trail networks, visitor centers, and year-round attractions, with 15% of funds preserved for Indigenous-led projects. Recent awards include USD 2.3 million to 23 projects in southern Ontario and USD 4.8 million to ventures in British Columbia. Such investments stretch the high season, reduce over-concentration in marquee sites, and buffer the Canada travel and tourism market against economic cycles.

Rise of Indigenous-led experiential tourism

Indigenous tourism generated USD 1.7 billion in GDP in 2022 and supported 32,000 jobs, yet still commands room for growth compared with New Zealand or Australia benchmarks. Signature Indigenous Tourism Experiences Stream grants of up to USD 755,000 catalyze product development ranging from cultural lodges to guided wildlife excursions. These offerings capture rising demand for authentic, sustainable travel and inject new jobs into northern and rural communities, keeping more economic value inside the Canada travel and tourism market.

Airline–rail inter-modal partnerships facilitating multicity itineraries

Transport Canada’s 2024-2025 Departmental Plan directs funds toward baggage-through-tagging, biometric border controls, and high-frequency rail corridors ^{[3]Source: Transport Canada, “Departmental Plan 2024-25,” tc.canada.ca.}. Coordination between airlines and Via Rail trims transfer times, enabling visitors to string together urban gateways and wilderness circuits in a single trip. Early pilots between Toronto and Montréal showcase load-factor lifts and carbon savings that dovetail with national climate targets, broadening the modal mix within the Canada travel and tourism market.

Chronic hospitality labour shortages

Statistics Canada reports that 37.3% of accommodation and food businesses foresee obstacles in recruiting skilled staff, extending wait times and suppressing capacity, especially in mountain resorts and major city cores. Federal immigration streams and tuition subsidies attempt to backfill gaps, yet housing affordability remains a structural barrier. Unless addressed, wage inflation could erode margins in the Canada travel and tourism market.

Overtourism caps in Banff and Niagara

Parks Canada and provincial agencies introduced daily reservation systems, parking quotas, and shuttle requirements that limit throughput during peak months. These caps safeguard ecosystems but also restrict revenue potential, pushing operators to cultivate alternative sites such as Waterton Lakes or Prince Edward County. Redistribution supports geographic diversification, yet crowding controls still shave 0.1 percentage points off the growth outlook for the Canada travel and tourism market.

Segment Analysis

By Type: Government policy drives experiential growth

Adventure and eco-tourism posted a 9.52% CAGR outlook, eclipsing traditional holiday travel even though holiday and leisure captured 58.67% of the Canada travel and tourism market in 2024. Indigenous Tourism Fund grants and wildlife conservation corridors underwrite new multi-day excursions that appeal to high-yield visitors.  

Federal tourism strategy emphasizes experiential offerings through infrastructure investment and marketing support for regional destinations. The Tourism Growth Program specifically targets small and medium-sized businesses developing local tourism products and experiences, with delivery through Canada's seven regional development agencies. This coordinated approach supports adventure and eco-tourism growth by improving access to remote destinations while maintaining environmental sustainability standards that align with Canada's climate objectives.

Note: Segment shares of all individual segments are available upon report purchase

By Booking Channel: Digital infrastructure investment

Online travel agencies accounted for 47.52% of 2024 bookings, yet direct supplier mobile apps are forecast to climb at an 11.86% CAGR, narrowing the gap within the Canada travel and tourism market. Carriers and hotel chains roll out loyalty-linked apps that shortcut commission fees and boost ancillary sales.  

A USD 500 million federal digital adoption program offsets development costs for small operators, fostering platform parity between multinationals and independent lodges. Quick mobile check-in, voice-enabled itinerary changes, and AI-driven upselling deepen consumer stickiness and raise transaction values across the Canada travel and tourism market.

By Tourist Origin: Currency policy impact

Domestic residents supplied 67.70% of 2024 visitors, but international arrivals are projected to expand at 9.90% CAGR, reflecting the purchasing power unlocked by a weaker loonie and faster visa approvals. Trip volumes from the United States, France, and India have outpaced other source markets, encouraged by targeted marketing campaigns. The Tourism Growth Program targets both domestic market development and international visitor attraction through coordinated regional development agency delivery that emphasizes community-based tourism products and experiences.

Government immigration policies and visa processing improvements support international visitor growth, while domestic tourism benefits from federal and provincial marketing initiatives. The Tourism Growth Program targets both domestic market development and international visitor attraction through coordinated regional development agency delivery that emphasizes community-based tourism products and experiences.

By Mode of Transport: Infrastructure investment priority

Air maintained a 52.56% share in 2024, yet rail is poised for the sharpest ascent at 8.12% CAGR owing to high-frequency corridor funding. Carbon-conscious travelers gravitate toward overnight sleeper trains connecting Montreal, Québec City, and Halifax.  

Airport-rail linkages reduce layover friction and encourage multicity itineraries, bolstering the average length of stay. These modal enhancements elevate service quality across the Canada travel and tourism market while distributing visitor loads more evenly among hubs. Federal transportation policy emphasizes intermodal connectivity and sustainable transportation options that support tourism sector objectives. The National Supply Chain Strategy includes passenger rail improvements while airport infrastructure investments address capacity constraints at major hubs, creating integrated transportation networks that enhance visitor experiences and operational efficiency.

Note: Segment shares of all individual segments are available upon report purchase

By Accommodation: Regulatory framework evolution

Hotels and motels commanded 61.71% share of the Canada travel and tourism market size in 2024, yet vacation rentals and home sharing are projected to grow at 10.95% CAGR. The USD 50 million Short-Term Rental Enforcement Fund targets non-compliant listings, nudging hosts toward licensing or long-term housing supply.  

Compliance platforms that automate tax remittances and safety inspections professionalize the segment, while hotels respond with dynamic pricing and curated local experiences. The regulatory equilibrium stabilizes inventory and sustains consumer choice across the Canada travel and tourism market.

Geography Analysis

Ontario’s leadership stems from a lattice of federal-provincial investments in convention venues, public transit, and cultural festivals. In March 2025, over USD 2.3 million in funding for 23 regional projects extends event capacity beyond the Greater Toronto Area. Cross-border proximity to the United States further amplifies visitation volumes, particularly for weekend city breaks and shopping trips.  

British Columbia combines Pacific gateway status with strong Indigenous tourism networks underwritten by more than USD 4.8 million in PacifiCan grants. Cruise infrastructure upgrades at Canada Place expand shoulder-season arrivals, while wine-country and outdoor recreation corridors distribute visitor flows inland. These dynamics widen the provincial contribution to the Canada travel and tourism market and relieve pressure on Vancouver’s downtown core.  

Northern Canada showcases the fastest trajectory, propelled by CanNor’s up-to-USD 6 million project ceiling that finances year-round lodges, winter roads, and skill incubators. The territories welcomed 180,000 non-resident visits in Q2 2024 with USD 127.7 million in spend, evidencing rising global appetite for aurora viewing and cultural immersion. Federal emphasis on reconciliation and climate-smart design safeguards landscapes while bolstering economic diversification across the Canada travel and tourism market.