The way Canadians travel is undergoing a remarkable shift this summer, with domestic tourism surging by nearly a third while trips south of the border continue their steady decline. Behind these numbers lies a complex story of economic pressures, shifting priorities, and perhaps a renewed appreciation for what our own backyard has to offer.
According to the latest Tourism Industry Association of Canada survey released yesterday, domestic travel across provinces has jumped 30 percent compared to last year’s figures. Meanwhile, Statistics Canada reports U.S.-bound trips have dropped for the third consecutive quarter, creating what industry insiders are calling a “stay-home summer.”
“We’re seeing Canadians rediscover their own country in numbers we haven’t recorded since before the pandemic,” explains Marsha Thompson, chief economist at the Tourism Industry Association. “It’s partly economic, partly cultural, and absolutely transformative for smaller communities that have historically been overshadowed by international destinations.”
The trend appears driven by several factors that cross both economic and social lines. The Canadian dollar’s recent strength—hitting a 14-month high against the U.S. dollar last week—has made American vacations noticeably more expensive. This economic reality is hitting middle-class families particularly hard, with average vacation budgets stretching roughly 22 percent less when converted to U.S. dollars compared to summer 2022.
I witnessed this shift firsthand during a recent reporting trip to Thunder Bay, where local business owner Jeanne Michaels has transformed her seasonal kayak rental shop into a year-round operation. “Five years ago, my customers were mostly Americans coming up for fishing trips,” she told me while preparing rental equipment for a group of Montrealers. “Now it’s Canadians from all over. Toronto, Montreal, Vancouver—they’re discovering places in their own country they never considered before.”
This domestic tourism surge isn’t just reshaping vacation patterns—it’s having tangible political implications. Federal Tourism Minister Soraya Martinez Ferrada announced a $45 million expansion to the Tourism Growth Program last month, specifically targeting regions seeing unprecedented domestic visitor growth. The move signals Ottawa’s recognition that this trend could represent a longer-term shift rather than a temporary pandemic-related anomaly.
Provincial governments are responding too. British Columbia recently launched its “Explore BC” campaign with $12 million in funding—triple its typical tourism promotion budget—while Quebec has eliminated provincial park entry fees for residents under its “Notre Nature” initiative.
When pressed about these investments during a committee hearing, Minister Ferrada pointed to sustainable growth potential: “Every dollar invested in domestic tourism generates approximately $3.10 in local economic activity, compared to $2.30 from international tourism,” she noted, citing Treasury Board analysis from March.
But not everyone sees the domestic travel boom as entirely positive. The Hotel Association of Canada reports that while occupancy rates are up 18 percent nationwide, the average stay duration has decreased by nearly two days. Canadians, it seems, are taking more frequent but shorter trips—a pattern that creates staffing challenges and reduces per-visit spending.
“We’re running at capacity on weekends and struggling midweek,” explains Devinder Singh, who operates three hotels in the Okanagan Valley. “American tourists typically stayed five to seven days. Canadian visitors are more likely to book Friday through Sunday, which means more turnover work with less revenue per guest.”
This shift in travel patterns comes against the backdrop of broader affordability concerns. A recent Angus Reid poll found that 72 percent of Canadians cited financial constraints as their primary reason for choosing domestic over international travel this year—up from 58 percent in 2023.
The decline in U.S. travel specifically represents a notable shift in cross-border relations. Historically, around 20 million Canadians visited the United States annually. Current projections suggest that number could fall below 15 million this year for the first time since record-keeping began in 1972 (excluding pandemic years).
Some analysts point to factors beyond economics. Political tensions and concerns about safety have emerged in focus groups conducted by Tourism Canada. “There’s a perception gap developing,” notes Dr. Emma Berard, sociologist at Ryerson University who studies travel behavior. “Canadian travelers increasingly view domestic destinations as safer and more aligned with their values, particularly younger demographics.”
Communities historically dependent on American tourism are adapting quickly. Niagara Falls, which typically draws 14 million visitors annually with roughly 30 percent from the U.S., has revamped its marketing to focus on urban Canadians seeking weekend escapes.
“We’ve changed everything from our advertising placement to the types of packages we offer,” explains Jennifer Lee, chair of the Niagara Tourism Board. “Where we once focused on week-long family vacations, we now promote two-night romantic getaways and adventure weekends targeted at Toronto and Montreal residents.”
For ordinary Canadians, the shift means both opportunities and challenges. Campground reservations at national parks are reportedly booked solid through August, with Parks Canada adding over 6,000 new reservable sites nationwide to meet demand. Meanwhile, popular destinations like Banff and Jasper have implemented visitor management systems for the first time to prevent overcrowding.
As I followed a family of five from Mississauga navigating Algonquin Park’s visitor center last week, father Tarek Mahmoud summarized the sentiment shared by many: “We always thought we needed to leave Canada to have a real vacation. Now we’re realizing how much we’ve been missing right here.” His children nodded enthusiastically while plotting their canoe route on a park map.
Whether this domestic tourism boom represents a lasting shift or a temporary response to economic and global uncertainty remains to be seen. What’s clear is that Canadians are rediscovering their country—and both businesses and governments are racing to capitalize on this renewed interest in exploring what lies within our borders rather than beyond them.
