Total tourism expenditures across Canada stood at $26.3 billion, virtually unchanged from the previous quarter.
Internal tourism spending is up 0.8 per cent., mostly in accommodation services (+5.1%) and food and beverage services (+2.5%). Tourism exports spending by non-residents in Canada fell by 2.6 per cent, marking a sharp reversal from the previous quarter’s growth.
Tourism’s contribution to gross domestic product rose by 0.5 per cent in the first quarter, outpacing the broader economy, which grew by 0.4 per cent. However, the sector’s share of GDP edged down to 1.74 per cent, compared with 1.79 per cent in the final quarter of 2024.
The data also show weakening international demand. Overnight travel to Canada by foreign visitors dropped 4.8 per cent, contributing to reduced spending across hotels, air transportation, and dining. The decline follows a modest rebound in international tourism at the end of 2024, and raises concerns about sustained softness in cross-border travel.
Canadian residents continued to spend more domestically. Spending on travel services declined by 8.5 per cent and pre-trip purchases fell 6.5 per cent, reflecting scaled-back travel plans. The number of overnight trips by Canadians returning from the United States fell by 12.2 per cent in the first quarter, with an additional 7.3 per cent decline recorded in April.
Tourism-related employment showed minimal growth. The number of jobs attributed to the sector rose 0.1 per cent to 707,400, with increases in food and accommodation services largely offset by losses in recreation and travel services. Tourism accounted for 3.30 per cent of total employment in Canada, unchanged from the previous quarter.
The sharp drop in international visitor spending and declining outbound travel by Canadians point to a sector navigating uneven conditions, with broader implications for hospitality and service industries heading into the summer season. For now, Canada’s tourism engine is still running, but increasingly due to Canadians vacationing in their backyard.