Ontario Joins Quebec, British Columbia, Alberta, Nova Scotia, and More in Struggling With Decreased Visitor Numbers — Local Businesses Suffer as Tourism Faces a Dramatic Dip — Discover Why This Is Happening and What You Can Do to Help!

Published on December 12, 2025

Tourism in Canada has always been one of the pillars that support local economies. From bustling cities like Toronto to the scenic beauty of the Rockies in Alberta, tourism has been a key driver of revenue for various provinces. However, a troubling trend has emerged in 2025, as ten major Canadian provinces are witnessing a sharp decline in tourist arrivals. Whether it’s a dip in international visitors or reduced cross-border travel from the U.S., the consequences are clear: local businesses are feeling the heat. This decline not only hurts hotels, restaurants, and tour operators but also casts a shadow over the long-term prospects of these industries. In this article, we will examine the reasons behind this slump, backed by the latest official data, and explore what can be done to reverse the trend and help businesses recover.

Ontario: A Drop in U.S. Visitors Hurts the Core of Canada’s Tourism Hub

Ontario has long been the heart of Canadian tourism, with Toronto and Niagara Falls attracting millions of international visitors each year. However, the province is now facing a significant tourism slump. In 2025, the number of international visitors to Ontario dropped by 12% compared to previous years. This decline is largely attributed to reduced cross-border tourism from the United States, which accounts for a significant portion of Ontario’s tourism market. U.S. tourists, who make up nearly 50% of international arrivals, are staying home due to economic concerns, stricter border controls, and shifting travel preferences.

The impact on local businesses has been devastating. Hotel occupancy rates in Toronto, Niagara Falls, and Ottawa have fallen by as much as 15%, while restaurant revenues and retail sales have dipped significantly. The decline in visitors has affected both high-end and budget accommodations. Smaller businesses in Niagara Falls, which rely heavily on seasonal tourism, are also reporting losses.

What Needs to be Done:
To counter this decline, Ontario needs to revitalize its appeal to international markets. More aggressive digital marketing campaigns, stronger partnerships with international airlines, and improved tourism packages targeting U.S. travellers could help reignite the flow of visitors.

Quebec: Cultural Attractions Lose Luster Amidst Declining Visitor Numbers

Quebec, known for its vibrant culture, French heritage, and beautiful landscapes, is another province grappling with tourism challenges. Despite being a top destination for U.S. and European travellers, Quebec has witnessed a 7% decline in visitor numbers in 2025. Government reports indicate that cross-border tourism has been particularly hit, with U.S. visitors decreasing by 9% compared to previous years.

The major cities of Montreal and Quebec City are seeing fewer international tourists. Hotels in these cities are reporting lower occupancy rates, particularly during the winter months when they typically see an influx of tourists for events like the Montreal International Jazz Festival and Quebec Winter Carnival. The impact is also being felt by restaurants, retail stores, and local cultural attractions such as museums and art galleries.

What Needs to be Done:
Quebec needs to boost its marketing efforts, particularly targeting the U.S. market. Developing new cultural events that can draw in international visitors, along with offering discounts for off-season visits, could help increase traffic during slow months.

British Columbia: The Strain of Declining International Arrivals

British Columbia is known for its stunning natural beauty, from the mountains to the coast. Vancouver, Whistler, and Victoria are among the top destinations in the province, attracting tourists year-round. However, in 2025, international tourism to British Columbia has fallen by 10%, with U.S. visitors showing the biggest decline.

The weakening of the U.S. dollar relative to the Canadian dollar, economic instability, and fewer direct flights from major international hubs have led to a significant drop in tourists. Hotels, restaurants, and tour operators in cities like Vancouver and Whistler are facing reduced revenue, especially during off-peak seasons. Retail sales in tourist-heavy areas are also down by nearly 8%.

What Needs to be Done:
British Columbia needs to boost its global appeal by leveraging its reputation for eco-tourism and adventure travel. Expanding its international flight routes, creating incentives for longer stays, and partnering with key tour operators could help improve visitation and spend.

Alberta: Decline in U.S. and Overseas Visitors to the Rockies

Alberta, home to the world-famous Rocky Mountains and national parks like Banff and Jasper, has seen a significant decrease in international tourist arrivals in 2025. The province’s tourism sector, heavily reliant on visitors from the U.S., Europe, and Asia, has been hit by fluctuating international exchange rates, political tensions, and economic slowdowns.

Alberta’s tourism economy is seeing a decline in hotel bookings, with visitation down by 12% compared to the previous year. Despite the beauty of the national parks, the hotel occupancy rates in Banff and Jasper are down 13%, and tour operators are facing fewer international guests. Restaurants and retail outlets catering to international tourists are also feeling the pinch, particularly during peak seasons.

What Needs to be Done:
To address this, Alberta must strengthen its promotional efforts in overseas markets. Partnering with international travel agencies and offering discounted travel packages during off-peak times could help reverse the decline in visitors.

Nova Scotia: Cross-Border Travel Decline Hits Coastal Tourism

Nova Scotia’s stunning coastline and maritime culture have always been a draw for tourists, especially those from the U.S. and Europe. In 2025, however, the province has seen a 7% decrease in visitors, with U.S. tourism down by 9%. The primary reasons for this decline include economic uncertainty in the U.S., higher travel costs, and reduced direct flights.

Local businesses, particularly those on the coast, are feeling the effects. Hotels, tour operators, and restaurants in cities like Halifax and Cape Breton are reporting significant drops in revenue, with retail spending in these areas also suffering.

What Needs to be Done:
Nova Scotia should focus on creating partnerships with regional airlines to improve connectivity. Additionally, offering discounted travel deals to U.S. visitors during peak seasons could bring back lost tourism revenue.

Newfoundland and Labrador: The Impact of Reduced Cruise Ship Arrivals

Newfoundland and Labrador has long depended on international cruise traffic, but 2025 has seen a decline in cruise arrivals. The province saw a 15% drop in international visitors, particularly affecting the coastal towns that cater to cruise tourists.

The drop in cruise visits has affected local businesses, from restaurants to souvenir shops. Coastal communities, which rely heavily on tourism-related revenue, are experiencing reduced foot traffic. Hotels in St. John’s are reporting lower occupancy rates, while local tour operators are also struggling.

What Needs to be Done:
Newfoundland and Labrador should work on attracting more international flights and promoting the province as a destination for adventure tourism. Developing unique tourism products beyond cruises could help diversify the economy.

Manitoba: Weaker Tourism Economy Hurts Local Businesses

Manitoba’s tourism sector, while not as large as some of the other provinces, still plays a crucial role in supporting the local economy. However, in 2025, the province has seen a 7% decline in tourism, primarily due to a drop in international visitors. The cultural tourism and nature tourism sectors, which rely on both domestic and international tourists, are experiencing challenges.

Hotels, restaurants, and local attractions are facing reduced demand. Winnipeg, known for its cultural offerings, has reported lower occupancy rates, while local tourism businesses are cutting back on services.

What Needs to be Done:
Manitoba should focus on increasing domestic tourism, while also enhancing its global appeal through digital marketing strategies. Offering special deals to attract visitors during off-peak seasons could help support the local tourism sector.

Saskatchewan: A Hit to Local Festivals and Cultural Tourism

Saskatchewan’s tourism economy, heavily reliant on cultural tourism and festivals, has faced a decline of 5% in 2025. Events like Saskatoon’s Folk Festival and Regina’s Jazz Festival typically draw large crowds, but international attendance has dropped significantly.

Local businesses such as hotels and restaurants are feeling the effects, with lower attendance at events and festivals directly impacting their revenues. Tour operators offering cultural experiences are also seeing fewer bookings.

What Needs to be Done:
Saskatchewan should enhance its cultural offerings and promote its festivals internationally. Collaboration with tourism partners to create all-inclusive packages could help boost the number of international visitors.

Prince Edward Island: Seasonal Tourism Struggles with Reduced International Visitation

Prince Edward Island, a province known for its seasonal tourism, has also experienced a decline in 2025. The primary reason for this downturn is the reduction in international visitors during the summer peak. Hotel occupancy and tourism-related businesses have been hit hardest.

What Needs to be Done:
Prince Edward Island must focus on promoting its seasonal offerings to international markets. Encouraging off-season travel, along with incentive programs for international visitors, could help support the tourism industry.

New Brunswick: Weaker Tourism from Cross-Border Travelers

New Brunswick, often overshadowed by its larger neighbours, has seen a decline in tourism in 2025, mainly from U.S. cross-border travel. With fewer international visitors and economic concerns, businesses in cities like Saint John and Fredericton are reporting slower sales.

What Needs to be Done:
New Brunswick should focus on improving its cross-border relations and create collaborations with regional airlines to improve connectivity with major U.S. cities.

Ongoing Christmas and New Year Celebrations in Canada

Despite the challenges in the tourism sector, Canada’s Christmas and New Year celebrations continue to shine brightly and attract both locals and visitors alike. From coast to coast, Canadian cities are adorned with spectacular light displays, festive markets, and winter activities that bring joy to all ages. Cities like Toronto, Vancouver, and Montreal transform into winter wonderlands with stunning holiday lights, Christmas markets, and ice skating rinks. New Year’s Eve celebrations in major cities, including Ottawa and Vancouver, feature fireworks displays, concerts, and cultural events that attract tourists despite the challenges. Additionally, Canada’s world-famous Winterlude festival in Ottawa and Quebec’s Carnival continue to draw thousands, offering an unbeatable experience of Canadian winter charm. The holiday season brings renewed optimism for tourism businesses, as the festive spirit of Christmas and New Year encourages travelers to experience the unique Canadian winter magic.

Must-Visit Places in Canada During Christmas

While Canada is known for its challenges in the tourism sector, its winter magic is unmatched. Here are a few must-visit places that should be on your holiday bucket list:

1. Quebec City
   Quebec City is like a scene straight out of a Christmas card, with its cobblestone streets lined with festive lights, charming Christmas markets, and historic buildings. The Old Quebec district, a UNESCO World Heritage site, becomes even more enchanting during the holiday season, offering everything from Santa’s Village to holiday performances.
2. Banff, Alberta
   The iconic Banff National Park is breathtaking during winter. Snow-covered mountains, frozen lakes, and cozy resorts provide a perfect winter retreat. The Banff Christmas Market offers local gifts, treats, and festive cheer while the town transforms into a magical place filled with lights and snow.
3. Vancouver, British Columbia
   Vancouver’s Stanley Park boasts a beautiful Holiday Lights Festival where millions of lights illuminate the park. The city also hosts Christmas-themed events, ice skating rinks, and vibrant winter festivals. Vancouver’s combination of festive spirit and mild winter weather makes it an excellent choice for families.
4. Toronto, Ontario
   The capital city is home to the Toronto Christmas Market, one of the most popular in the country. Visitors can experience European-inspired Christmas stalls, delicious food, and handcrafted gifts. The city’s towering Nathan Phillips Square ice rink becomes a must-visit attraction as it’s adorned with festive lights, making it a perfect spot for families and couples.
5. Whistler, British Columbia
   Whistler, the ultimate ski resort, offers an incredible mix of adventure and relaxation. While skiing or snowboarding is the major draw, the town’s festive atmosphere makes it even more special. Whistler’s Village Stroll becomes a winter wonderland with holiday lights, outdoor skating, and festive events that attract visitors from all over the world.

Why You Should Visit Canada This Winter

Canada’s winter season is a magical experience that offers something for everyone. Whether you’re looking for adventure, relaxation, or a festive atmosphere, Canada is the perfect winter destination. From the stunning snow-covered landscapes of Banff and Whistler to the charming Christmas markets in cities like Toronto and Quebec, there’s no shortage of holiday spirit and breathtaking beauty. Winter in Canada is also the perfect time to enjoy unique cultural experiences, such as the Winterlude Festival in Ottawa and the Quebec Carnival, all while being surrounded by the warmth of friendly Canadians.

Moreover, the tourism industry in Canada is recovering, and many regions are introducing special winter deals to attract tourists, ensuring that visitors can enjoy Canada’s charm without breaking the bank. It’s a great time to travel in winter to not only enjoy spectacular events but to help rejuvenate local businesses that depend on the tourism industry.

A Positive Outlook for Canadian Tourism

While Canada’s tourism sector has faced significant challenges in recent years, the country’s natural beauty, cultural richness, and festive offerings continue to draw travelers. As the tourism industry recovers, Canada’s winter charm remains a beacon for visitors worldwide. Whether you’re looking to experience world-class ski resorts, cozy Christmas markets, or breathtaking winter landscapes, Canada is waiting to offer you a once-in-a-lifetime experience this season. So pack your bags, and embrace the magic of winter in Canada, where unforgettable memories are made, and the festive spirit reigns supreme!