OTTAWA — Tourism continued to outpace the broader Canadian economy in the third quarter of 2025, with real tourism gross domestic product rising 0.9 per cent, matching gains seen in the previous quarter, according to new national tourism indicators.
By comparison, economy-wide real GDP by industry increased 0.5 per cent in the third quarter after contracting 0.2 per cent in the spring. Tourism accounted for 1.70 per cent of nominal GDP during the period, little changed from 1.71 per cent in the second quarter.
Growth in tourism GDP was driven primarily by accommodation and transportation, both of which rose 1.2 per cent. Food and beverage services increased 0.5 per cent, while other tourism-related industries edged up 0.4 per cent. Activity in non-tourism industries linked to visitor spending also rose 0.8 per cent.
Total tourism spending increased 0.7 per cent in the quarter, slowing slightly from a 0.9 per cent gain in the spring. Higher domestic tourism spending, up 0.5 per cent, combined with a 1.2 per cent increase in spending by international visitors.
Accommodation services were the largest contributor to spending growth, rising 1.4 per cent. Passenger air transport declined 1.0 per cent, reflecting continued Canada–U.S. trade tensions and flight cancellations linked to an August strike by flight attendants.
Spending by international visitors rebounded after a sharp decline earlier in the year, increasing across most tourism products. Vehicle rentals posted a 5.1 per cent gain, while vehicle repair and travel services each rose 2.6 per cent. Accommodation spending by international visitors increased 1.0 per cent after falling more than six per cent in the previous quarter.
International visitors accounted for 22.3 per cent of total tourism spending in Canada, virtually unchanged from the spring and remaining near the lowest level in more than two years. Fewer American trips to Canada and reduced Canadian travel to the United States continued to influence cross-border travel patterns.
Domestic tourism spending slowed after a strong start to the year. Canadian residents increased spending on accommodation services by 1.6 per cent, pre-trip expenditures by 4.4 per cent and vehicle rentals by 11.3 per cent. Passenger rail transport rose 3.9 per cent, a gain partly attributed to the Canada Strong pass, which was valid from late June through early September.
Tourism-related employment also continued to grow. Jobs attributable to tourism increased 0.6 per cent in the third quarter, matching gains from the previous quarter, while overall employment across the economy declined 0.3 per cent. Tourism jobs represented 3.36 per cent of total employment, up slightly from the spring.
All tourism industries added jobs except recreation and entertainment, which was flat. Food and beverage services, accommodation and non-tourism industries linked to tourism activity posted the strongest gains.
Looking ahead, leading indicators suggest softer travel activity late in the year. The number of Canadians returning to the country by land and air declined in October and November compared with the same months a year earlier. Non-resident travel into Canada increased in October, driven by air arrivals, but fell in November across both air and land modes.
The national tourism indicators are produced by Statistics Canada and funded by Destination Canada. Data for the first and second quarters of 2025 were revised as part of the third-quarter release.
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