Canada’s tourism industry delivered a strong performance in the second quarter of 2025, with domestic tourism driving GDP growth of 1.3%. According to Statistics Canada, the sector now contributes 1.77% to Canada’s GDP, up from 1.75% in Q1. This surge was fueled largely by Canadians choosing local destinations over international travel, particularly reducing trips to the United States. For newcomers and skilled workers considering Canada as their new home, these numbers highlight not only economic stability but also the opportunities created by thriving industries.

How Domestic Tourism Boosted Canada’s Economy

One of the standout trends in Q2 was the rise in domestic tourism spending, which grew by 2.9%. Canadians showed a clear preference for traveling within their own country. Surveys revealed:

• 34.8% of Canadians planned to increase domestic vacation spending.
• 55.1% reduced their U.S. travel expenses.

Accommodation services saw a sharp rise of 6.5%, while food and beverage services grew by 3.9%. Transportation also rebounded, contributing further to tourism GDP. Together, these gains pushed tourism ahead of the broader economy, which contracted by 0.2% during the same period.

Decline in International Tourism

While Canadians traveled more within the country, international tourism told a different story. Spending by foreign visitors dropped by 5.3% in Q2, with the steepest decline coming from U.S. travelers, down 10.2%. This dip highlights a shift in focus toward domestic consumers, strengthening Canada’s reliance on local tourism while still leaving room for growth in international arrivals.

For future immigrants, this trend signals that Canada’s tourism and hospitality sectors continue to generate jobs, particularly in accommodation, food services, and recreation.

Tourism-Driven Job Growth in Canada

Tourism-related jobs increased by 0.6% in Q2, bringing the total to over 712,000 positions. Growth was strongest in:

• Food and beverage services (+0.8%)
• Recreation and entertainment (+1.4%)
• Non-tourism industries tied to travel (+0.7%)

These gains helped push tourism’s share of Canada’s workforce to 3.34%. For skilled workers in hospitality, customer service, and related fields, these numbers reflect expanding job opportunities.

Why Immigration is Key to Canada’s Tourism Growth

The surge in domestic tourism spending has created higher demand for labor in accommodation, dining, and recreational services. However, with Canada’s overall labor shortage and fewer international visitors, employers increasingly depend on skilled immigrants to keep the sector running smoothly. Workers with experience in hospitality, travel management, and food services are especially sought after.

How ImmigCanada Can Help You

At ImmigCanada, we specialize in helping skilled professionals and families transition to Canada through the right immigration programs. Our licensed consultants (RCICs) assess your profile and connect you with opportunities in industries that are actively hiring including tourism, healthcare, technology, and more. Whether you are interested in permanent residency or work permits, our team ensures your application is accurate and competitive.

Canadian Domestic Tourism Surges as GDP Contribution Reaches 1.77% in Q2 2025

The latest statistics confirm that domestic tourism is fueling Canada’s economy, creating thousands of jobs and boosting wages in key service industries. For skilled workers abroad, this is the right time to consider building a future in Canada. With ImmigCanada’s expert guidance, you can turn these opportunities into your pathway toward permanent residency and a brighter career. Take the first step today, contact ImmigCanada to explore how you can become part of Canada’s growth story.