Canada Travel and Tourism - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The canada travel and Tourism Market size is expected to grow from USD 94.68 billion in 2025 to USD 98.52 billion in 2026 and is forecast to reach USD 120.23 billion by 2031 at a 4.06% CAGR over 2026-2031. This report is Segmented by Services (Transport, Accommodation, Food & Beverages, and More), Type (Holiday/Leisure, Visiting Friends & Relatives, and More), Booking Channel (Online Travel Agencies (OTAs), Direct Supplier, and More), Tourist Origin (Domestic Residents, and International Arrivals), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Canada Travel And Tourism Market Trends and Insights

E-Visa and eTA Expansion Boosting Long-Haul Arrivals

Canada removed the eTA requirement on March 15, 2025, for low-risk travelers who held a Canadian visa in the last decade or possess a valid United States non-immigrant visa, eliminating what the government identified as a barrier to travel that deterred last-minute bookings and created frustration. This exemption applies to an estimated 200,000 to 300,000 visitors annually and is projected to generate USD 1.6 billion in new tourism revenue over ten years by simplifying entry for markets with established security credentials. Faster front-end processing on established channels also supports higher conversion from last-minute intent to confirmed bookings for long-haul trips. The change aligns with an industry focus on attracting premium travelers who favor streamlined document checks and predictable arrivals. The policy move pairs with airline capacity redeployments toward overseas markets, which together lift the Canada travel and tourism market by improving the throughput from high-propensity origin countries.

Weaker Canadian Dollar Attracting United States and European Tourists

A weaker Canadian dollar improves inbound price attractiveness for United States and European visitors, which supports recovery in long-haul traffic and leisure spend. Monthly data for late 2025 indicates momentum in international air arrivals, suggesting currency tailwinds that enhance hotel and dining value propositions for foreign guests. Airlines are leaning into this demand mix by adding transatlantic and transpacific routes, which extend choice and raise seat capacity on high-yield corridors. Destination marketing efforts use this window to position Canada as a strong value destination while emphasizing responsible travel and community outcomes. As macro conditions stabilize, the currency channel remains a near-term driver for the Canada travel and tourism market since it compresses effective costs and encourages longer stays by international visitors.

Chronic Hospitality Labor Shortages

Accommodations and food services continue to report persistent hiring gaps, which compress operating hours and service levels during peak travel periods. Operators respond with automation in front-office workflows and simplified service models, yet these fixes do not fully offset occupancy or wage pressures. Financial strain remains visible in food service, where a large share of establishments operate at slim margins or losses under elevated input and payroll costs. Provincial hotel associations also report soft sentiment for the near term, with many properties planning for steady rather than stronger performance. The labor bottleneck, therefore, caps throughput during demand surges and weighs on the realized growth path for the Canada travel and tourism market.

Other drivers and restraints analyzed in the detailed report include:

• Federal Tourism Growth Strategy 2030 Capital Investments
• Rise of Indigenous-Led Experiential Tourism
• Airport Slot and Runway Capacity Limits at YYZ and YVR

Segment Analysis

Transportation commanded 42.63% of the Canada travel and tourism market share in 2025 as airlines broadened networks and restored long-haul connectivity across transatlantic and transpacific corridors. Air Canada expanded to 126 global destinations for Summer 2026, including new routes from Montreal and Toronto that increase direct access for European and leisure markets. WestJet announced new services from Toronto and Halifax to multiple European capitals that leverage the range of newer narrowbodies for transatlantic operations. These moves lift seat supply on long-haul routes and support broader dispersion of visitors beyond gateway cities. At the same time, the Others category, which includes recreation, entertainment, shopping, and convention fees, is the fastest-growing service line with a 5.10% CAGR through 2031, signaling a steady shift toward experience-led spending in the Canada travel and tourism market.

Accommodation and food services reflect mixed conditions that are improving with targeted programs. Destination British Columbia reports strong sector contributions and job growth, supported by coordinated marketing and product development across regions. Enforcement funding for short-term rentals seeks to rebalance supply toward regulated operators and communities, which is expected to lift compliance and improve market transparency. Food service margins remain under pressure, which influences hours and menu strategies as operators adjust to costs and labor conditions. Passenger rail recovery continues despite weather and labor disruptions, and intermodal programs are expanding the accessible network for visitors. The net effect is a healthier mix that supports the Canada travel and tourism market as experience spending grows faster than pure transport outlays.

Holiday and leisure travel held 45.27% of the type segmentation in 2025, while Adventure and Eco-Tourism posted the fastest growth at a 5.37% CAGR through 2031. National programs elevate culturally authentic and low-impact itineraries, and the Original Original accreditation helps buyers identify high-quality Indigenous-led products. Provincial strategies fund festivals, attractions, and season extension, which sustain demand outside summer peaks and boost resilience. Business events receive added focus with national funds for convention attraction and venue upgrades in major cities. This blend of leisure and high-yield segments strengthens the Canada travel and tourism market as products evolve toward deeper engagement and responsible travel.

Visiting Friends and Relatives and business travel benefit from demographic and policy tailwinds, including destination marketing and global connectivity. Convention infrastructure projects in key markets unlock capacity for large events and create spillovers to lodging, dining, and attractions. Indigenous tourism organizations prioritize training, accreditation, and market linkages so that community-led offerings scale sustainably. Destination-level coordination supports balanced growth across seasons and geography, which stabilizes yields in a more diverse product mix. Together, these elements support rising share for experience-led travel within the Canada travel and tourism industry while maintaining the core leisure base.

Complete Report Scope:

• Market Size and Growth Rates By Services
  • Transport
    • By Mode of Transport
      • Air
      • Road
      • Rail
      • Water (Cruise and Ferries)
  • Accommodation
    • Hotels and Motels
    • Vacation Rentals and Home-Sharing
    • Hostels and Budget Lodging
    • Campgrounds and RV Parks
  • Food & Beverages
  • Others (Recreation & entertainment, shopping expenses, convention fees, and others)
• Market Size and Growth Rates by Type
  • Holiday/Leisure
  • Visiting Friends & Relatives
  • Business Travel
  • Adventure and Eco-Tourism
• Market Size and Growth Rates by Booking Channel
  • Online Travel Agencies (OTAs)
  • Direct Supplier (Airline/Hotel Websites)
  • Traditional Travel Agencies
• Market Size and Growth Rates by Tourist Origin
  • Domestic Residents
  • International Arrivals
• Market Size and Growth Rates by Geography
  • Ontario
  • Quebec
  • British Columbia
  • Northern Canada
  • Others

List of Companies Covered in this Report:

• Air Canada
• WestJet Airlines Ltd.
• Porter Airlines Inc.
• Transat A.T. Inc.
• Rocky Mountaineer
• Viking Cruises Canada
• InterContinental Hotels Group (IHG)
• Marriott International
• Accor SA
• Hilton Worldwide Holdings Inc.
• Hyatt Hotels Corporation
• Best Western Hotels & Resorts
• Four Seasons Hotels Limited
• Expedia Group (Expedia.ca, Vrbo)
• Booking Holdings Inc.
• Flight Centre Travel Group Limited
• American Express Global Business Travel Canada
• Trafalgar Tours
• Intrepid Travel
• Indigenous Tourism Association of Canada (ITAC)

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support