Canada’s Tourism Overtakes Previous Growth Projections as Canadians Embrace Domestic Travel Amid U.S. Boycott, Bringing Billions to the Economy

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Since the beginning of 2025, Canadians have increasingly chosen to forgo vacations in the United States, sparked by rising political tensions and a growing sense of discomfort with American policies. This shift has led to a surprising surge in domestic tourism, positioning Canada’s travel industry for a “banner year.” With more locals exploring their own country, Canada is not only reaping the benefits of reshored tourism spending but also seeing a steady stream of American visitors, creating a unique situation where Canada’s tourism sector is thriving despite a decline in outbound Canadian travel.

The decision by many Canadians to avoid the United States, which has been in place for over a year now, follows a series of controversial statements and actions by former U.S. President Donald Trump, including his provocative suggestion that Canada should become the 51st state. While some Americans found it difficult to comprehend, the rhetoric was enough to push many Canadians to reconsider their travel plans south of the border. This shift has had a profound impact on Canada’s tourism economy, reversing the trend of outbound travel and redirecting billions of dollars back into the country.

As a result of the ongoing U.S. travel boycott, Canadian tourism is expected to surpass previous records, with an estimated $1.5 billion in additional spending for 2025 alone. Between 2025 and 2027, this surge is projected to reach $4.4 billion, ensuring that Canada’s tourism sector remains strong even as traditional cross-border traffic declines. Destination Canada, the national tourism organization, is thrilled with the growth, which has helped contribute to a broader economic recovery.

The U.S. remains Canada’s largest international tourism market, and American visits continue to provide significant economic benefits. While Canadians may be staying home, Americans have continued to travel north, supporting Canada’s tourism sector. This trend, coupled with increased interest from international markets, means that Canada’s tourism industry is experiencing a period of robust growth.

According to Marsha Walden, the President and CEO of Destination Canada, tourism is not just a key economic sector but a high-growth export with fast returns. “The Canadian Tourism Outlook shows demand is accelerating, and the opportunity for Canada is even greater if we grow global market share and continue attracting more international demand,” Walden noted in a recent statement. With a focus on both domestic and international travelers, Canada is well-positioned to continue benefiting from the expanding global travel market, valued at $2.1 trillion.

Canada’s focus on domestic tourism is being supported by strong marketing campaigns aimed at highlighting the country’s natural beauty, vibrant cities, and rich cultural history. Former Prime Minister Justin Trudeau encouraged Canadians to explore the diverse array of national parks, historical sites, and hidden gems within their own borders. As more Canadians rediscover their own country, domestic travel is becoming a key economic driver, with the tourism sector projected to contribute $140.9 billion in visitor spending by 2026—an increase of 6% from 2025.

In addition to the domestic boost, Canada’s international tourism market is also thriving. In March 2026, Statistics Canada reported a 4% increase in visits from U.S. residents, marking the second consecutive month of growth after 12 months of year-over-year declines. The steady increase in American visitors, combined with a 9.3% growth in overseas trips to Canada, underscores the success of Canada’s global outreach efforts. International arrivals, particularly from France, the United Kingdom, and Mexico, have remained strong, while new markets such as China, Taiwan, and South Korea have also shown notable growth.

The growth of international tourism to Canada is a critical part of the country’s broader tourism strategy. Destination Canada expects the overseas market to grow by 9.8% annually through 2035, helping to diversify Canada’s tourism base and reduce its reliance on any single market. This diversification ensures that Canada’s tourism sector remains resilient, even in the face of fluctuating political climates and changing global travel trends.

While the increase in international arrivals is promising, the steady growth in domestic tourism continues to be the focal point for Canada’s tourism recovery. Canadians are traveling not just to traditional tourist destinations but also venturing into lesser-known areas of the country, discovering new experiences and hidden treasures. For example, regions in British Columbia, Ontario, and Quebec have all reported an uptick in local tourism, as Canadians choose to explore their own backyards instead of crossing the border.

This trend is evident in the steady growth of bookings to international destinations as well. Although fewer Canadians are heading to the U.S., many are traveling to Europe, Asia, and the Caribbean. According to Anita Emilio, General Manager of Flight Centre Canada, “We’re down 40% year-over-year for travel into the U.S. More Canadians are now choosing to travel to Europe or down south.” Travel experts agree that the appeal of destinations like Turks and Caicos, Japan, and Switzerland is growing, with Canadians finding good value for money, especially with the strong purchasing power of the Canadian dollar.

Meanwhile, Canadian travel companies are adapting to these changes by offering packages tailored to the new preferences of travelers. Jenna English of Toronto-based G Adventures notes that while Canadian interest in the U.S. has waned, it doesn’t mean Canadians are traveling less—they are simply choosing new destinations. This shift is helping Canada’s travel sector stay resilient and continue to grow, even as it faces challenges from the political and social climate south of the border.

Despite the Canadian boycott of the U.S., American visits to Canada continue to show resilience. As of March 2026, Statistics Canada reported that American visits to Canada by car rose by 4.3%, while air travel saw a more significant increase of 3.1%. This uptick in American arrivals is a sign that Canada remains an attractive destination for U.S. travelers, even in the face of political tension and a changing travel landscape.

With the projected growth in both domestic and international tourism, Canada’s travel industry is on track for a strong recovery in the years ahead. As the U.S. remains an important source of visitors, the continued growth in overseas markets, along with a boost from Canadians traveling domestically, ensures that Canada’s tourism sector will continue to thrive. With a forecasted annual growth rate of 5.3% for U.S. travel spending and a 9.8% annual growth rate for overseas markets, Canada is poised for a bright future in the global travel industry.

As political tensions continue to influence travel preferences, Canada’s tourism industry is showing remarkable adaptability and resilience. With an expanding domestic market and increasing international interest, Canada’s tourism economy is set to outperform expectations, positioning the country as a leading global travel destination.