Vancouver, Montreal, Toronto, Calgary, Quebec, and Other Cities Saw Growth and New Opportunities in Domestic Tourism as Canada Shifted Away from US Travel This Year: What You Need to Know

Published on December 23, 2025

Vancouver, Montreal, Toronto, Calgary, Quebec, and other cities saw growth and new opportunities in domestic tourism as Canada shifted away from U.S. travel this year. Rising costs and political tensions led many Canadians to explore local destinations, boosting Canada’s tourism sector. With a notable decline in visits to the United States, Canadians increasingly turned to their own cities for vacations, fueling growth in domestic travel. Cities like Vancouver and Montreal saw a surge in international visitor spending, while Toronto focused on attracting premium tourists. Calgary benefited from enhanced international connectivity, and Quebec City solidified its place as a top heritage destination. This shift has not only strengthened Canada’s tourism industry but also created fresh opportunities for local economies across the country.

Canada Freezes US Travel in 2025: Declines Across the Board

In 2025, Canadian travel to the United States saw a sharp decline, marking a significant shift in cross-border tourism. Statistics revealed that road travel dropped by 30%, while air travel fell by 24% in the first half of the year. This marks a continued trend of fewer Canadians opting for U.S. vacations, with many turning to more affordable domestic destinations or international travel. The ongoing rise in the U.S. dollar, combined with inflation, has made U.S. trips more expensive, further discouraging travel. Political and social tensions between the two nations have also played a role in shifting preferences. This freeze in U.S. travel represents a broader shift toward domestic tourism, as Canadians rediscover their own country’s attractions.

Toronto: Canada’s Powerhouse for Premium Tourism

Toronto remains Canada’s most-visited city in 2025, despite a slight dip in visitor volume. The city adopted a “quality over quantity” strategy, focusing on attracting high-value tourists. Approximately 4 million visitors came in the first half of 2025, contributing nearly $3.9 billion in spending. A significant portion of this revenue came from the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector, which added over $450 million in direct impact. Despite a 1% decrease in total volume, Toronto’s strategic shift to premium tourism ensured sustained revenue growth and cemented its status as a major tourism hub.

Vancouver: A Premium Destination with Global Appeal

Vancouver emerged as Canada’s premium tourism destination in 2025, primarily due to its importance as a major cruise ship homeport. The city boasted a peak hotel occupancy rate of 83.3% in May, with an average daily room rate (ADR) of $306, the highest in the country. Vancouver’s international visitor spending surged by 10.4% during the summer, driven by the booming Alaskan cruise industry. As a world-class destination, Vancouver attracted affluent travelers seeking a mix of natural beauty and urban luxury, making it a significant player in Canada’s tourism growth.

Montreal: The Festival Capital with International Flair

Montreal’s tourism success in 2025 was anchored in its vibrant festival scene and robust European flight connections. The city’s peak hotel occupancy rate reached 85% during major summer events, with room rates increasing by 7% year-over-year to $248. A standout event was the Montreal International Jazz Festival, which attracted nearly 2 million attendees, significantly boosting the city’s third-quarter performance. Montreal’s rich cultural calendar and global accessibility continue to draw international visitors, reinforcing its position as a top-tier cultural and entertainment hub in Canada.

Calgary: The Best-Connected Mid-Sized City in North America

Calgary solidified its reputation as North America’s best-connected mid-sized city in 2025, following substantial aviation investments. With an estimated 1.6 million international visitors, Calgary continues to thrive as a key player in the Canadian tourism industry. The Calgary Stampede remains one of its major attractions, drawing over 1.3 million attendees annually. Domestic air travel between Calgary and other major cities, such as Vancouver and Toronto, also saw significant growth. Calgary’s growing international connectivity, coupled with its iconic events, supports its continued rise as a major tourism destination.

Quebec City: A Timeless Gem for Heritage Tourism

Quebec City shines in 2025 as a leader in heritage-based tourism, celebrated for its rich history and iconic UNESCO-listed Old Town. Voted the #1 favorite Canadian city by Travel + Leisure for the 10th consecutive year, the city attracted around 1.2 million international visitors. Museums and heritage sites saw a notable 10-15% boost in attendance, reflecting the growing global interest in Quebec’s cultural and historical offerings. The city’s charm, coupled with its well-preserved architecture, continues to make it a top choice for travelers seeking authentic cultural experiences and a connection to Canada’s past.

Vancouver, Montreal, Toronto, Calgary, Quebec, and other cities saw growth and new opportunities in domestic tourism as Canada shifted away from U.S. travel this year. Rising costs and political tensions led many Canadians to explore local destinations, boosting Canada’s tourism sector.

Conclusion

Vancouver, Montreal, Toronto, Calgary, Quebec, and other cities saw growth and new opportunities in domestic tourism as Canada shifted away from U.S. travel this year. With rising costs, inflation, and political tensions driving Canadians to seek more affordable local destinations, Canadian cities benefitted from a surge in domestic tourism. This shift allowed cities to capitalize on emerging opportunities, further strengthening Canada’s tourism industry and providing a much-needed boost to local economies. As Canadians continue to explore their own country, cities across Canada are poised to maintain this positive trend in the coming years.