Canada Tourism Spending Climbs Almost Thirty Billion Dollars  as International Visitors Drive Q2 2026 Growth

Canada’s tourism economy continued to expand in the second quarter of 2026, with total tourism spending reaching $28.5 billion as stronger international visitor expenditure helped offset a flat domestic market.

Statistics Canada reported that tourism demand in Canada increased 0.3% quarter over quarter in Q2 2026, rising from $28.459 billion in the first quarter to $28.538 billion in the second quarter, measured in constant 2017 dollars and adjusted for seasonal variations. The result extended the tourism sector’s broader recovery, while real tourism GDP and employment also moved higher.

The strongest source of momentum came from foreign visitors. Tourism spending by non-residents increased 1.0% to $7.307 billion, while domestic tourism spending remained virtually unchanged at $21.231 billion. International travellers therefore accounted for 25.6% of all tourism spending in Canada, up from 25.4% in the previous quarter.

Canada’s Q2 Tourism Economy at a Glance

Statistics Canada’s national tourism indicators show that the sector continued to grow even though domestic travel expenditure did not increase during the quarter. This makes the contribution from international visitors particularly significant. Their spending rose faster than total tourism demand and helped push the industry forward despite weakness in some transportation-related categories.

International Visitors Become a Bigger Force in Canada’s Tourism Economy

Foreign travellers were the clearest growth engine during the second quarter. Non-resident tourism spending climbed from $7.236 billion in Q1 to $7.307 billion in Q2, an increase of 1.0%. International spending had also risen 1.0% in the previous quarter, pointing to two consecutive periods of steady expansion.

The increase was spread across several categories. International visitor spending on accommodation rose 0.8%, passenger air transport increased 0.9%, and spending on other products such as groceries rose 1.8%. Food and beverage services purchased by non-residents also increased 0.9%.

Statistics Canada also recorded stronger overnight traffic from markets outside the United States. Overnight visits from non-US countries rose 2.5%, while overnight US travel edged up only 0.2%. This suggests that long-haul markets were making a larger contribution to Canada’s inbound tourism growth during the quarter.

FIFA World Cup Traffic Gives Canada an Added International Boost

The second quarter also coincided with the 2026 FIFA World Cup, with Canada hosting 10 matches in Toronto and Vancouver during the period. Statistics Canada noted that arrivals from the 15 countries that played World Cup matches in Canada during June increased 28.6% year over year.

That does not mean the World Cup alone explains Canada’s tourism growth, but it provided a substantial short-term demand boost for accommodation, restaurants, transport and entertainment. Major sporting events can lift visitor spending well beyond stadium activity because international travellers often add hotel nights, dining, attractions and local transport to their trips.

For Toronto and Vancouver in particular, the event created an opportunity to convert global sports demand into broader tourism revenue.

Accommodation and Food Spending Continue to Rise

Accommodation and food services were among the strongest-performing tourism categories in Q2.

Total tourism spending on accommodation increased 0.6%, rising from $5.294 billion in the first quarter to $5.328 billion in the second. Spending on food and beverage services increased 1.0%, from $3.377 billion to $3.410 billion.

The rise in these categories is important because they are closely connected with longer stays and visitor activity on the ground. Higher spending on hotels and restaurants tends to spread tourism revenue through local economies, supporting hospitality businesses, suppliers and workers.

Tourism GDP growth also reflected the strength of these industries. Statistics Canada said accommodation industry tourism GDP increased 0.8%, while food and beverage services grew 1.0%.

Transportation Spending Slips as Domestic Demand Stalls

The quarter was not uniformly strong.

Overall tourism spending on transportation declined 0.2%, falling from $10.830 billion in Q1 to $10.803 billion in Q2. Domestic transportation spending was weaker, dropping 0.5%, while non-resident transportation demand still increased 0.7%.

Domestic tourism spending remained unchanged overall at about $21.2 billion. Statistics Canada said lower expenditure on passenger air transport, down 1.3%, and vehicle fuel, down 2.8%, restricted domestic growth.

This creates an important split within Canada’s tourism economy. Canadians continued to provide the vast majority of tourism spending, but they were not driving quarterly growth. International visitors were.

Tourism GDP Extends an Expansion That Began in 2022

Real tourism GDP increased 0.4% in Q2 2026, following growth of 0.5% in the first quarter. Tourism’s share of Canada’s nominal GDP stood at 1.77%, virtually unchanged from the previous quarter.

Statistics Canada said tourism GDP has remained on an upward path since the second quarter of 2022. The continued Q2 expansion therefore adds another quarter to a multi-year recovery.

However, tourism grew more slowly than the broader Canadian economy during the period. Economy-wide real GDP by industry increased 0.9%, more than double the 0.4% tourism GDP gain.

That distinction matters. Tourism is expanding, but the sector is not currently outpacing the whole economy.

Tourism Employment Reaches 699,000 Jobs

Employment linked directly to tourism also moved higher.

Canada recorded approximately 699,000 tourism-generated jobs in Q2 2026, up 0.4% from the previous quarter. The broader Canadian economy recorded job growth of 0.2% over the same period, meaning tourism employment expanded at twice the economy-wide rate.

Job gains were strongest in recreation and entertainment, up 1.4%, and food and beverage services, up 0.9%. However, accommodation tourism jobs fell 0.5%, while travel services employment declined 1.2%.

The mixed employment picture shows that rising tourism expenditure does not automatically translate into equal job growth across every tourism industry.

International Spending Gives Canada Its Clearest Growth Story

The central Q2 story is the growing importance of foreign travellers.

International visitors represented just over one-quarter of total tourism spending but were responsible for much of the quarter’s growth. Their expenditure rose 1.0%, while domestic spending was flat.

Three trends stand out:

• Foreign visitor spending reached $7.3 billion and increased 1.0%.
• Accommodation and food spending continued to grow.
• Tourism GDP and employment both increased 0.4%.

Together, these indicators suggest that Canada’s tourism sector entered the second half of 2026 with positive momentum, although transportation weakness and stagnant domestic spending remained important constraints.

Canada’s Tourism Outlook Remains Positive Into the Second Half of 2026

Early indicators for the third quarter also point to continued international activity.

Statistics Canada said non-resident arrivals by land and air increased in both July and August 2026 compared with the same months in 2025. That does not guarantee another quarter of tourism spending growth, but it provides encouraging evidence that inbound demand remained resilient after Q2.

The next National Tourism Indicators release, covering the third quarter of 2026, is scheduled for January 2027.

For now, Canada’s Q2 figures show a tourism economy still expanding, but increasingly dependent on foreign visitors for incremental growth. Total spending has moved above $28.5 billion, tourism employment is approaching 700,000 jobs, and international travellers are contributing a larger share of tourism dollars. The challenge will be maintaining that momentum while reviving domestic transportation spending and converting higher visitor numbers into sustained economic gains across accommodation, food, recreation and local businesses.