Canada's tourism industry posted solid gains in the third quarter of 2025, with tourism GDP climbing 0.9% despite ongoing trade tensions with the United States.

The sector outpaced the broader economy, which grew just 0.5% during the same period. Accommodation and transportation industries led the expansion, while domestic tourism spending reached $20.8 billion.

International visitor spending rebounded after a sharp decline in Q2, though many Canadians shifted their travel plans toward domestic destinations. The Canada Strong pass appears to have boosted rail travel, while employment in tourism-related jobs edged up 0.6%, even as overall employment contracted.

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