April 27, 2026 Team Contributor
Despite global headwinds, surging jet fuel prices forcing airlines to recalibrate, and lower travel to the US (a 22% drop in Jan 2026 from 2025 levels), Canada’s tourism sector is poised for a strong 2026 and sustained growth through 2035, according to new outlook data from Destination Canada.
Tourism is recognized as one of Canada’s top service exports. The sector supports one in 10 Canadian jobs. It generated an impressive $32.7 billion in tax revenue in 2024.
2026 is the banner year in Canada’s tourism
Visitor spending is projected to reach $140.9 billion in 2026, up 6% from 2025. In fact, the tourism revenue is growing faster than the broader Canadian economy. In the fourth quarter of 2025, tourism real GDP grew by 1.2%.
To put this in perspective, economy-wide real GDP by industry contracted by 0.1% during the same period. The sector is entering what is being described as a “banner year.”
Simply put, this is the moment when a sector achieves exceptional performance, reaching record-breaking milestones and exceeding even historical benchmarks.
Moving towards the 2035 goal
Canada is moving towards an ambitious goal of adding $300 billion in non‑U.S. exports by 2035. By this year, total tourism revenue is forecast to reach $216.3 billion, a 67% increase over 2024 levels.
The growth is driven primarily by overseas markets, expected to expand at 9.8% annually through 2035, nearly double the pace of the U.S., which remains Canada’s largest international market.
More travellers are choosing to travel within Canada. The sentiment is definitely a near-term boost, with reshored Canadian spending projected to add $4.4 billion between 2025 and 2027.
The FIFA World Cup 2026 (hosted across Vancouver and Toronto) will be another highly anticipated moment with economic benefits.
Business events are highlighted as a high‑yield opportunity, with international association events projected to exceed pre‑pandemic levels by 2028.
Federal investment via the International Convention Attraction Fund has already helped secure 116 international events, generating over $800 million in direct economic impact.
Canada’s rising global reputation underpins this momentum, ranking #1 in RepCore Nations 2025 (tied) and #3 in the 2025 Anholt Nation Brand Index.
Marsha Walden, President and Chief Executive Officer of Destination Canada, said, “Tourism is a high-growth export with fast returns.”
She further added, “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.“
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