I’ve spent the last week digging through travel industry data, and something fascinating is happening in our backyard. Canadian tourism patterns are shifting dramatically, with many of us choosing to explore our own country rather than heading south of the border.
Remember those pandemic-era predictions about pent-up wanderlust exploding into record international travel? The reality has proven more nuanced, especially for Canadian travelers.
According to the latest Tourism Industry Association of Canada survey, domestic tourism within Canada jumped nearly 30% in the first quarter of 2024 compared to the same period last year. Meanwhile, trips to the United States have declined by approximately 15% – marking the third consecutive quarter of decreasing cross-border travel.
“We’re seeing a fundamental reset in how Canadians think about travel,” explains Marsha Walden, President of Destination Canada. “The combination of economic pressures and newfound appreciation for local experiences is creating what might be a lasting shift in travel preferences.”
This trend reversal arrives at a particularly challenging moment for the U.S. tourism sector, which has historically counted on Canadian visitors as its largest international market. In 2019, Canadians made over 20 million trips to the United States, generating roughly $16 billion in tourism revenue.
The economic factors driving this shift aren’t difficult to spot. The Canadian dollar has hovered between 72-74 cents USD for much of 2024, making American destinations significantly more expensive. Add in rising accommodation costs across major U.S. cities – hotel rates in popular destinations like New York and Miami have increased by 23% and 18% respectively since 2022 – and suddenly that trip to Banff or Quebec City looks much more appealing.
Emily Chen, a financial analyst at RBC Capital Markets who tracks tourism trends, points to another factor: “We’re seeing inflation-weary consumers making more value-conscious decisions. When you factor in exchange rates, transportation costs, and overall trip expenses, many Canadians are finding better value keeping their travel dollars at home.”
The benefits for Canada’s tourism economy have been substantial. Tourism HR Canada reports that employment in the sector has returned to 96% of pre-pandemic levels, with notable growth in rural and natural destination areas. Bookings for national park accommodations are up 42% compared to 2023, according to Parks Canada data.
Small business owners in tourism-dependent communities are feeling the positive impact. Martha Gallagher, who runs a bed and breakfast in Lunenburg, Nova Scotia, told me her bookings are up almost 40% this year.
“We’ve always had American and European guests, but the surge in Canadian visitors is remarkable,” Gallagher said. “Many tell me they’ve lived in Canada their whole lives but never explored the Maritimes before.”
The trend extends beyond leisure travel. Conference Board of Canada researcher Richard Forbes notes that business travel within Canada has recovered faster than cross-border corporate trips. “Canadian companies are being more selective about international travel, while maintaining in-person connections domestically,” Forbes explained in a recent report.
There’s another element driving this shift that isn’t purely economic – environmental consciousness. A Leger survey commissioned by Destination Canada found that 36% of Canadian travelers now consider carbon footprint when planning trips, up from 21% in 2019.
“Sustainability isn’t just a buzzword anymore,” says climate policy researcher Dominique Martin from the University of British Columbia. “We’re seeing real behavior changes as people become more aware of travel’s environmental impact.”
Not everyone in the tourism ecosystem is celebrating these shifts. Travel agencies specializing in U.S. destinations report challenges. Jennifer Luxton, who operates a Toronto-based agency focused on Florida vacations, has seen bookings decrease by nearly 25%.
“Many clients who would automatically book Disney or Miami are now asking about comparable Canadian options,” Luxton says. “The exchange rate is definitely a factor, but there’s also less anxiety about staying closer to home.”
U.S. tourism officials have noticed the decline. The U.S. Travel Association recently launched a targeted marketing campaign in key Canadian cities, emphasizing value and proximity. Border states like New York and Washington have introduced special discount programs specifically for Canadian visitors.
What remains unclear is whether this domestic travel surge represents a temporary adjustment or a longer-term realignment of Canadian tourism patterns. Tourism economist Patrick Doyle believes it’s likely a mix of both.
“Some of this shift will normalize as economic conditions change,” Doyle suggests. “But the pandemic fundamentally altered how people evaluate travel decisions. Many Canadians discovered incredible destinations in their own country that they’ll continue returning to.”
The upcoming summer season will be telling. Advanced bookings for Canadian destinations remain strong, with coastal areas in British Columbia and Atlantic Canada reporting particularly robust numbers.
For travelers still planning their summer getaways, the message from tourism operators is clear: book early. Popular Canadian destinations are filling up faster than in previous years, and the combination of increased demand and still-recovering supply chains means availability may be limited.
Whether driven by economics, environmental concerns, or simply a renewed appreciation for home, one thing is certain – Canadians are rediscovering Canada, and our tourism industry is adapting to welcome them.
