Canada’s tourism industry delivered a steady performance in the third quarter of 2025, demonstrating resilience during a period marked by economic uncertainty and cross-border trade tensions. Newly released national tourism indicators show that tourism-related economic activity grew at a faster pace than the overall Canadian economy, highlighting the sector’s growing stability.

According to Statistics Canada, tourism gross domestic product increased by 0.9% in Q3 2025. During the same period, economy-wide GDP grew by just 0.5%. This difference illustrates how tourism continues to serve as a reliable contributor to Canada’s economic activity, even as other sectors experience slower momentum.

Tourism’s Contribution to Canada’s Economy

Tourism accounted for 1.70% of Canada’s nominal GDP in the third quarter, remaining largely unchanged from the previous quarter. Growth was recorded across almost all tourism-related industries, with accommodation and transportation leading the expansion.

Industry performance highlights:

Industry Segment	Q3 2025 Growth
Accommodation services	1.2%
Transportation services	1.2%
Food and beverage services	0.5%
Other tourism industries	0.4%

These gains reflect increased overnight stays, stronger demand for regional travel, and gradual normalization of travel patterns after earlier disruptions.

Domestic Travel Continues to Drive Spending

Domestic tourism spending remained a key growth driver in Q3 2025, reaching $20.8 billion. Although growth slowed compared to the previous quarter, Canadians continued to prioritize travel within the country.

• Several factors supported domestic travel:
• Fewer trips to the United States
• Higher spending on accommodations and pre-trip expenses
• Increased rail travel

The Canada Strong pass, available between June 20 and September 2, likely contributed to a 3.9% rise in passenger rail transport, encouraging Canadians to explore destinations closer to home.

International Visitor Spending Shows Recovery

International tourism spending rebounded in the third quarter, rising 1.2% after a sharp decline in Q2. Growth was observed across most tourism products, including vehicle rentals, travel services, and accommodations.

International visitors accounted for 22.3% of total tourism spending, a level that stabilized after falling to a two-year low earlier in 2025. While Canada–US travel remained affected by trade tensions, spending patterns suggest gradual recovery from non-US markets.

Tourism Employment Trends Remain Positive

Tourism-related employment increased by 0.6% in Q3 2025, even as overall employment across Canada declined by 0.3%. This growth was driven mainly by accommodation and food services, reinforcing tourism’s role as a job generator.

Tourism jobs represented 3.36% of all jobs in Canada, slightly higher than the previous quarter.

Why This Matters for Immigrants and Workers

Tourism remains a key entry point for newcomers seeking Canadian work experience. Growth in hospitality, transportation, and services creates opportunities for immigrants to gain employment, build experience, and support long-term settlement plans.

Canada’s tourism industry continues to demonstrate stability and adaptability. With steady growth, rising employment, and strong domestic spending, the sector remains an important contributor to economic and workforce resilience. If you are working in hospitality or planning your career in Canada, expert guidance can help you turn short-term employment into a long-term status. Speak with a certified Canadian immigration consultant at ImmigCanada immigration consulting services to explore immigration pathways aligned with Canada’s labour market needs.