Canada is having a moment this year, according to new Destination Canada research which predicts a record-breaking 2026 for domestic tourism.
The study, conducted alongside Tourism Economics, shows that the accelerating demand for travel within Canada is "outperforming expectations."
The country's tourism sector is expected to see a 6% increase in projected spending in 2026 compared to 2025, outpacing the 5.4% increase predicted in previous outlooks. The rise would see the tourism sector boosting Canada's economy by $140.9 billion.
The report highlights Canadians “reshoring” travel dollars at home as being big factors in the lift in tourism revenue.
The trend is also set to continue for the next decade as tourism revenue is projected to reach $216.3 billion by 2035, an increase of 67% from 2024. International visitors are set to be the "catalyst" for longer-term tourism growth over the coming decade, with a predicted 7.7% annual growth in revenue from US and other international visitors.
The report highlights the long-term importance of the Canadian tourism industry, forecasting it will make up 9-10% of Canada’s $300 billion "trade diversification goal" by 2035.
Destination Canada says the report findings show that tourism is "becoming a more powerful future-proof export" and part of Canada's "long-term economic story."
As frequently reported by Open Jaw over the last year, there has been an ongoing drop in the number of Canadians travelling to the US, with many opting to travel closer to home instead.
That's set to be the case for summer 2026 as well, as CTV reports "political, economic and safety concerns" as reasons many are pulling back from heading south of the border.
The hesitation is backed up by a recent survey from Canadian market research firm Leger, showing 67% see political tensions as a reason to skip travel to the US. Nearly 60% said they didn't feel welcome, while 39% said the weak Canadian dollar was also a factor.
“The stay in Canada trend is there," says Andrew Enns, executive vice president of Leger Central Canada.
“We’re seeing even a little bit of a pickup of people wanting to get out and travel. And certainly, we’re seeing, you know, that that pickup in that interest to travel again within the country,” he added.
