Ontario and British Columbia Gain as Canadians Redirect Travel Spending at Home in 2026

Canada is experiencing a major shift in travel behaviour as residents spend more of their tourism money at home while trips to the United States continue to decline, creating fresh opportunities for destinations from Ontario and British Columbia to Quebec, Alberta and Atlantic Canada.

Statistics Canada data shows Canadians made 69.1 million domestic visits during the first quarter of 2026, an increase of 2.3% compared with the same period a year earlier. Spending on those domestic trips climbed even faster, reaching $14.5 billion, up 5.1%.

The pattern extends a major change that developed during 2025, when Canadian domestic tourism spending reached $81.3 billion, rising 8.7% year on year.

At the same time, Canadians have sharply reduced travel to the United States. The change is creating an important redistribution of tourism spending, with more money remaining within Canadian destinations and businesses.

Canadians Spend $14.5 Billion on Domestic Tourism in Three Months

Domestic tourism entered 2026 with positive momentum.

Canadian residents made 69.1 million visits within Canada during January, February and March, compared with fewer visits during the corresponding period in 2025.

Those travellers spent $14.5 billion inside the country.

The figures reveal that Canadians are not simply travelling more domestically. They are also spending more per trip.

That distinction matters for hotels, restaurants, attractions, transport businesses and communities dependent on visitor expenditure.

US Travel Continues to Lose Canadian Demand

The domestic increase comes alongside persistent weakness in Canadian travel to the United States.

Canadians made 5.5 million trips involving a US visit during the first quarter of 2026, down 10.6% from the same period in 2025.

Spending fell even faster.

Canadian residents spent $5.0 billion during US visits, representing a 13.6% year-on-year decline.

The first-quarter figures continue a much larger shift that emerged in 2025.

Canadian residents made 23.1 million US trips during 2025, down 23.5% from 2024.

Compared with 2019, Canadian visits to the United States were 26.7% lower.

Domestic Tourism Spending Reached $81.3 Billion in 2025

The scale of Canada’s domestic tourism economy becomes clearer when the full-year figures are examined.

Canadian residents made 342 million domestic visits in 2025.

That was 1.5% higher than 2024 and 2.5% above 2019.

Spending increased much faster than trip volume, reaching $81.3 billion.

That represented annual growth of 8.7% and an extraordinary 41.8% increase compared with 2019.

Canadian Domestic Tourism Performance

The gap between visit growth and expenditure growth also reflects higher travel prices and changing spending patterns, so the increase should not be interpreted entirely as additional tourism volume.

Nevertheless, more Canadian travel money is circulating through the domestic visitor economy.

Leisure Travel Is Driving the Shift

Holiday travel has played an especially important role.

Statistics Canada found that domestic expenditure growth in 2025 was driven partly by an 8.1% increase in spending on leisure-related trips.

At the same time, Canadian leisure travel to the United States fell sharply.

Holiday, leisure and recreation visits to the US declined 21.5%, equivalent to approximately 3.2 million fewer visits during 2025.

Spending on US leisure trips fell by $2.2 billion to $12.1 billion.

That suggests discretionary holidays are particularly sensitive to changing traveller sentiment.

Family visits tend to be harder to substitute because travellers may need to visit relatives in a specific location. A holiday destination, by contrast, can often be changed.

Ontario Can Capture More Short-Break Demand

Ontario is well positioned to benefit when Canadians decide to travel domestically.

Toronto offers city breaks built around restaurants, shopping, museums, entertainment and major events.

Niagara Falls provides one of Canada’s most recognisable leisure destinations, while Muskoka, Ottawa and smaller communities create options for nature, culture and weekend travel.

For Ontario residents, domestic tourism can also eliminate international border procedures and currency conversion.

That convenience can become increasingly important for families planning shorter holidays.

British Columbia Offers a Powerful Alternative to International Trips

British Columbia can appeal to Canadians who want the experience of a major holiday without leaving the country.

Vancouver combines urban tourism with immediate access to mountains and the Pacific coast.

Whistler offers outdoor recreation, while Vancouver Island provides wildlife, beaches, food and scenic driving.

The Canadian Rockies and interior regions add another layer of adventure tourism.

For travellers who might previously have considered destinations in the western United States, British Columbia can provide a domestic alternative centred on similar combinations of mountains, coastlines and outdoor experiences.

Quebec Turns Culture Into a Domestic Tourism Advantage

Quebec has a different strength.

Montreal and Quebec City provide cultural experiences that can feel substantially different from other Canadian destinations without requiring an international journey.

Food, festivals, French-speaking culture, architecture and heritage give the province a distinctive tourism identity.

Regional Quebec adds mountains, villages, outdoor recreation and nature-based tourism.

That diversity allows Canadians to experience a meaningful change of environment while keeping their spending inside the national economy.

Alberta Can Capitalise on Nature-Based Travel

Alberta also stands to benefit from stronger domestic tourism.

Banff, Jasper, Lake Louise and the Canadian Rockies are internationally recognised destinations.

For Canadians, they offer a major nature-based holiday without crossing an international border.

Calgary and Edmonton add urban attractions, events, food and cultural experiences.

Domestic demand can be particularly valuable for Alberta because it helps diversify the tourism market beyond international visitors.

Canadians Are Not Simply Staying Home

There is an important qualification to the domestic-tourism narrative.

Canadians are travelling less to the United States, but they have not abandoned international travel altogether.

Overseas travel actually increased.

During the first quarter of 2026, Canadians made 4.6 million trips involving overseas destinations, up 6.2% year on year.

They spent $10.1 billion overseas, an increase of 16.7%.

Mexico attracted 1.3 million Canadian visits during the quarter, making it the leading overseas destination, followed by the Dominican Republic with 441,000 and Costa Rica with 193,000.

Japan and France also recorded strong increases.

The shift is therefore more accurately described as a redistribution of Canadian travel rather than a complete retreat from international holidays.

Canadian Travel Patterns Have Changed Sharply

The numbers reveal three simultaneous trends:

• Domestic tourism remains strong and spending is increasing.
• Travel to the United States has contracted significantly.
• Overseas destinations outside the US continue attracting Canadians.

That makes 2026 unusual.

The United States historically benefited enormously from its proximity to Canada, warmer winter destinations and extensive cross-border connections.

But Canadian travellers increasingly have alternatives.

They can holiday domestically, travel to Mexico and the Caribbean or choose long-haul destinations in Europe and Asia.

Tourism Businesses Across Canada Gain an Opportunity

More domestic spending can support a wide range of businesses.

Hotels and resorts can attract Canadians who might otherwise have booked accommodation abroad.

Restaurants benefit from additional visitor spending.

Museums, attractions, ski resorts, national parks, tour companies and transport providers can all participate.

The beneficiaries can include:

• Hotels and resorts
• Restaurants and cafés
• Attractions and museums
• Tour operators
• Airlines and rail companies
• Car rental businesses
• Outdoor recreation providers
• Festivals and events
• Local retailers
• Small tourism communities

The economic value can also spread beyond Canada’s largest cities.

Domestic travellers frequently use cars and regional transport, making smaller destinations more accessible.

Canada Tourism Enters 2026 With Strong Domestic Momentum

The latest official figures show that Canada’s domestic tourism market remains resilient.

Canadian residents made 69.1 million domestic visits during the first quarter and spent $14.5 billion, representing increases of 2.3% and 5.1%, respectively.

At the same time, travel to the United States fell 10.6%, while Canadian spending south of the border dropped 13.6%.

The trend follows an extraordinary 2025, when domestic tourism spending reached $81.3 billion and US travel contracted sharply.

For Canadian tourism businesses, that creates an important opportunity.

More residents are discovering that a major holiday does not necessarily require crossing the US border. Ontario, British Columbia, Quebec, Alberta, Atlantic Canada and other regions can offer city breaks, mountains, coastlines, culture, food and outdoor experiences within Canada.

The country’s tourism challenge will now be converting this shift into lasting loyalty.

If Canadians who rediscovered domestic destinations during the recent travel realignment continue exploring their own country in future years, the effects could extend well beyond a temporary change in cross-border sentiment.

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