British Columbia Joins Alberta, Ontario, and Québec Lead Record-Breaking Visitor Spending and Hotel Boom in Canada, New Update is Here

Written By: Tuhin Sarkar

Tuhin Sarkar

Tuhin Sarkar is a Senior Journalist at Travel and Tour World with more than 10 years of experience in travel and tourism journalism. A post-graduate in Journalism and Mass Communication from Jadavpur University, he combines strong research, industry knowledge and storytelling expertise to produce engaging, insightful and impactful travel news and fascinating feature stories.

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August 31, 2025 23:58 GMT+5:30

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British Columbia joins Alberta, Ontario, and Québec in driving a record-breaking visitor spending surge and hotel boom in Canada. This new update shows how these provinces lead the nation’s tourism revival with powerful growth in hotels, attractions, and taxes. British Columbia shines with strong international arrivals. Alberta draws visitors to its mountains and cities. Ontario posts record visitor spend in Toronto and Niagara Falls.

Québec adds a cultural magnet with Montréal and Québec City. Together, British Columbia, Alberta, Ontario, and Québec push Canadian tourism into a new high point. Visitor spending rises, hotel demand soars, and new tourism taxes bring funds for growth.

This combination of record-breaking visitor spending and a hotel boom is shaping the future of Canadian travel. The new update confirms that Canada’s tourism leaders are rewriting the national story with unstoppable momentum.

Tourism is one of the strongest pillars of Canada’s economy. In 2024, visitors spent more than one hundred and twenty nine billion Canadian dollars across the country. Hotels, restaurants, and attractions all saw steady growth. The momentum has carried into 2025. Provinces and territories are now reporting even stronger flows of domestic and international travellers. The national outlook points to two to four percent growth this year. A weaker Canadian dollar helps attract foreign visitors. At the same time, local tourism taxes are rising in many cities. These funds are now being used to build events, promote destinations, and support infrastructure.

This report explains Canada’s 2025 tourism scenario. It shows how each province and territory is performing. It also gives a picture of 2024 hotel and accommodation spending. Finally, it breaks down the tourism tax system that visitors are now paying in different parts of the country.

Canada National Picture

Tourism spending in 2024 grew by 3.6 percent compared to 2023. International visitors spent eight percent more than the previous year. Hotels were one of the strongest contributors. In the last quarter of 2024, overseas travellers put over 30 percent of their trip budget into hotel stays. Total accommodation demand reached nearly 4.6 billion Canadian dollars in that quarter alone. Destination Canada expects total visitor spending to reach one hundred and sixty billion dollars by 2029.

The mix of travellers is changing. Domestic trips are stable, but the growth edge is in overseas visitors. Cruise travel is rising on the Atlantic and Pacific coasts. Air travel continues to expand in Toronto, Vancouver, Montreal, and Calgary. These gateways are the main entry points for international guests.

British Columbia

British Columbia remains Canada’s star tourism province. In the last quarter of 2024, international visitors spent 1.7 billion dollars in the province. Vancouver, Victoria, and the Rocky Mountains are key draws. The 2025 outlook points to solid growth, but wildfires remain a seasonal risk.

Hotel rooms in Vancouver carry several layers of tax. Guests pay eight percent provincial sales tax. They also pay a three percent municipal and regional district tax. Vancouver has added another 2.5 percent levy until 2030 to fund major events.

Alberta

Alberta is rebuilding its international market after pandemic losses. In late 2024, inbound spending was 440 million dollars. Calgary and Edmonton are seeing strong convention and sports traffic. Banff and Jasper remain top leisure attractions.

Visitors pay a four percent tourism levy on hotel rooms across the province. Cities like Calgary and Edmonton also charge destination marketing fees. These funds are reinvested into promotion and events.

Saskatchewan

Saskatchewan draws mostly domestic and regional visitors. Non-resident spend was about 40 million dollars in the last quarter of 2024. Demand is stable, with cultural tourism and sports leading the way.

There is no province-wide hotel tax. However, cities like Regina and Saskatoon apply a three percent destination marketing fee. This supports local events and conferences.

Manitoba

Manitoba has a balanced mix of nature and cultural attractions. Winnipeg is the hub. While Statistics Canada suppressed some visitor data for 2024 due to quality limits, the city’s hotel tax data shows rising receipts.

Since April 2024, Winnipeg increased its accommodation tax from five to six percent. Brandon applies a five percent nightly fee. These changes are part of a wider strategy to boost revenue for destination marketing.

Ontario

Ontario is Canada’s most visited province. International spending in the last quarter of 2024 reached 1.68 billion dollars. Toronto reported a record 8.8 billion dollars in total visitor spend in 2024. This was four percent more than 2023 and seven percent higher than pre-pandemic levels.

Ontario’s tourism tax system is now among the most complex in Canada. Most cities charge a four to six percent municipal accommodation tax. Toronto raised its rate to 8.5 percent from June 2025 until July 2026. Ottawa charges five percent. Niagara Falls introduced a new flat nightly fee in 2025 that varies by hotel star rating.

Québec

Québec is a strong magnet for international travellers. The province welcomed 842 million dollars in non-resident spending in the last quarter of 2024. Québec City alone recorded 2.5 billion dollars in visitor spending in 2024, a rise of about ten percent.

The lodging tax across the province is 3.5 percent of the room price. In addition, the federal GST of five percent and the Québec sales tax of nearly ten percent apply. This makes hotel stays in Québec among the most heavily taxed in the country.

New Brunswick

New Brunswick has been building its tourism profile through local levies. The province reported about 40 million dollars in inbound spending in late 2024. Coastal resorts and cultural towns are leading attractions.

Since 2019, municipalities can charge their own tourism accommodation levies. Saint Andrews, for example, applies a 3.5 percent fee. Funds are directed into marketing and event growth.

Nova Scotia

Nova Scotia is enjoying growth from cruise traffic. Halifax expects more than 188 ship calls in 2025, bringing 328,000 passengers. Inbound visitor spending in the province was about 100 million dollars in late 2024.

Halifax increased its marketing levy to three percent in October 2023. This applies to hotels and short-term rentals. It is now a key source of tourism funding.

Prince Edward Island

Prince Edward Island saw inbound visitor spend of 26 million dollars in the last quarter of 2024. Overnight stays in 2025 are tracking about 3.5 percent higher than the year before. Domestic visitors and Europeans are supporting growth as US traffic slows.

Charlottetown and Summerside apply a three percent tourism accommodation levy. This has become a predictable revenue tool for the island’s marketing efforts.

Newfoundland and Labrador

Newfoundland and Labrador are growing through cruise tourism and cultural experiences. Inbound visitor data for late 2024 was suppressed, but trends point to recovery.

St. John’s applies a four percent accommodation tax. In 2025, new rules brought short-term rentals under the Tourist Accommodations Act. This ensures that platforms like Airbnb collect and remit taxes as hotels do.

Yukon

The Yukon attracts visitors seeking northern lights, wilderness, and adventure. In late 2024, the three northern territories together reported 30 million dollars in non-resident spending.

The territory itself does not have a hotel levy. However, some towns like Watson Lake have introduced local levies. These are small but important for local tourism boards.

Northwest Territories

The Northwest Territories took a big step in April 2025. Yellowknife introduced a four percent tourist accommodation tax. This move aims to fund marketing and infrastructure after major wildfire impacts in 2023 and 2024.

The territory is working to attract adventure and cultural visitors back. Aurora viewing remains the most famous product.

Nunavut

Nunavut is the least visited part of Canada but offers unique experiences. Adventure, culture, and wildlife define its appeal. There is no territory-wide hotel tax, though federal GST applies.

Visitor spending remains small in scale. However, niche demand from Europe and Asia is expected to slowly rise in 2025 and beyond.

Hotels and Accommodation Spending

Accommodation is one of the largest parts of the tourism economy. In 2024, non-resident visitors spent 1.7 billion dollars on hotels in the last quarter alone. Domestic travellers spent 2.8 billion dollars. Overall, accommodation accounted for nearly one third of total trip spending by overseas guests.

These figures show how important hotel revenue is for the wider economy. They also highlight why provinces and cities use hotel levies to raise tourism funds.

Tourism Tax Landscape

Tourism tax in Canada is layered. All visitors pay the federal goods and services tax or the harmonised sales tax. On top of that, provinces and municipalities apply hotel or accommodation taxes. These rates range from three percent to more than eight percent.

British Columbia and Ontario now have some of the highest hotel tax rates. Vancouver applies up to 13.5 percent in combined sales and hotel taxes. Toronto has an 8.5 percent municipal tax plus HST. Québec adds three layers, including a 3.5 percent lodging tax.

These taxes raise hundreds of millions of dollars per year. They are reinvested into events, promotions, and infrastructure. They also help provinces manage the costs of hosting more visitors.

Analytical Outlook for 2025

The Canadian tourism industry enters 2025 in a position of cautious strength. National spending is expected to grow between two and four percent. Domestic demand is steady. International markets are mixed, with strong growth from Europe and Asia but softness from the United States.

Risks include wildfire seasons in British Columbia and the Northwest Territories, global geopolitical uncertainty, and air capacity limits. However, the weaker Canadian dollar and rising cruise traffic provide strong offsets.

The rise in hotel levies shows how tourism is becoming more central to government revenue planning. These levies, if managed carefully, can fund sustainable growth. But if rates become too high, they risk making Canadian cities less competitive compared to US or European destinations.

Tourism in Canada is a giant economic engine. In 2024, visitors spent nearly one hundred and thirty billion dollars. Hotels, restaurants, and attractions benefited. In 2025, growth is expected to continue, though at a moderate pace. Provinces and territories are each shaping their own strategies. British Columbia and Ontario remain the largest markets. Atlantic Canada is rising with cruise tourism. The North is experimenting with new levies.

The tourism tax system is complex but now firmly established. Guests in Canada pay several layers of tax on hotel stays. These funds are used to market cities, build events, and support tourism infrastructure.

The Canadian tourism scenario in 2025 is one of resilience, growth, and adaptation. With careful policy, balanced taxation, and investment in experiences, Canada can reach its goal of one hundred and sixty billion dollars in visitor spending before the end of the decade.