Canada’s tourism sector generated a record-breaking, nearly $60 billion, between May and August 2025, boosted by domestic travelers.
Last year was one of the strongest seasons on record for Canadian tourism, generating nearly $60 billion across May through August, which marked a 6% year-over-year increase. Key growth factors included a post-COVID travel bounce, a favorable exchange rate, and trade tensions that encouraged Canadians to explore their own country instead of traveling south of the border.
FIFA World Cup 2026
With the FIFA World Cup arriving in June, Canada is positioned to capture a major share of the global tourism market. Canada is co-hosting the massive tournament alongside the U.S. and Mexico, with key matches set in the major hubs of BC Place in Vancouver and BMO Field in Toronto. Historically, these kinds of major sports games tend to have a spillover effect, pulling heavy event spending into surrounding regions as international visitors extend their trips beyond the host cities, some even booking entire vacations around these events.
Rising Costs are Keeping Canadians Home
Despite strong underlying demand, the international and domestic travel industry faces steep economic challenges.Jet fuel prices have spiked to nearly 70%, while domestic airfares have surged by 14%, according to Flight Centre Canada. In addition, ongoing flight consolidations and cancellations are causing delays and cancellations, meaning travel records may be harder to break this year compared to the surge seen in 2025.
On top of all this, Canadian travelers will face their own hardships due to the current living crisis. Thirty-one per cent of Canadians from an Ipsos poll say they plan to travel less due to economic uncertainty. The people aged 55 and older are the ones whose plans are least affected by inflation, interest rates and geopolitics, while younger Canadians—the group that’s most eager to travel—are the ones most likely to be priced out.
Domestic Tourism Campaign
With this collective desire for travel, the Canadian government has begun to take measures to appease young Canadian domestic travelers. The Canada Strong Pass returns from June 19th to September 7th, 2026, offering free or discounted admission to national parks, museums, and galleries across the country. VIA Rail offers free travel for people 17 and under when accompanied by an adult, and a 25% discount for young adults aged 18 to 24. Beyond government-subsidized travel, “runcation” tourism is fueling Canadian exploration. These destination race events combine a fitness goal with a regional getaway in a new travel trend. Canada has plenty of destination racing opportunities for interested travelers.
While it might not break the 2025 records, through its World Cup hosting, airline shutdowns, fuel crisis, and domestic tourism campaign, Canada is still poised to be a popular travel destination this year.
Follow for more travel news.
