Canada’s travel landscape in 2025 is marked by interesting shifts. On one hand, domestic travel — Canadians exploring their own country — is showing resilience and modest growth. On the other, international travel by Canadians, and inbound tourism to Canada, face various headwinds. Meanwhile, hotel affordability, destination appeal, and changing preferences all factor into how Canadians travel and where. This article explores these dynamics: do Canadians travel within Canada? Are hotels affordable? What percentage prefer travel abroad? What are the most-visited Canadian cities and places? And what broader trends are emerging?

Domestic Travel Within Canada

Recent data indicates that Canadians are increasingly opting to travel within the country. According to Statistics Canada, in the first quarter of 2025, domestic tourism spending rose by 0.8%, while the tourism industry’s contribution to GDP grew by 0.5%.
In addition, insights from Airbnb reveal that searches for domestic stays in Canada in 2025 were up nearly 20 % compared to the prior year.
Such indicators suggest a rising appetite among Canadians to explore their own backyards, perhaps encouraged by rising costs abroad, travel uncertainty, or simply a desire for closer-to-home getaways.

Moreover, a projected boost in the travel and tourism sector shows that domestic visitor spending is expected to reach nearly CAD $104 billion in 2025. This figure underscores the importance of the domestic travel market to Canada’s travel economy.

Outbound Travel by Canadians

While domestic travel is stable or growing, outbound travel by Canadians is showing a decline in some segments. Statistics Canada data show that Canadian residents’ trips abroad were down in multiple months of 2025. For example, in March 2025 there was a 14.9 % year-over-year drop in such trips.
In May 2025, Canadian residents returned from 3.4 million trips abroad, a 22.5% year-over‐year decline.
The data suggest that fewer Canadians are traveling outside the country—especially to the United States by land—and this may be pushing more travellers to stay domestic.

Why Are Canadians Travelling Less Abroad?

There are several contributing factors:

• Cost pressures and travel uncertainty: Rising prices, concerns about foreign currency value or border disruptions may dampen travel abroad.

• Changing destination preference: Some Canadians appear to shift away from the U.S. in particular. For instance, in early 2025, Canadian trips to the U.S. by car fell significantly.

• Domestic travel attractiveness: With improved domestic tourism offerings and easier travel within Canada, the home-market becomes more appealing.

• Global travel environment: The international travel market remains somewhat volatile and less predictable, which may dissuade some Canadians from going abroad.

Hotel Affordability and Travel Costs

An important aspect of travel is accommodation — how affordable are hotels (and other lodging options) for Canadians travelling domestically or abroad?

While there is limited specific nationwide data in 2025 on “average hotel cost for Canadians travelling in Canada,” the rise in domestic travel suggests hotels and lodging are accessible enough to support that trend. Meanwhile, room and board costs vary widely by region — major cities like Vancouver, Toronto, and Montréal tend to have higher hotel rates, while many smaller towns and rural destinations offer more affordable options.

Given the increase in domestic travel spending on accommodation (+5.1% for accommodation services in Q1) noted by Statistics Canada, it appears Canadians are willing to spend more or upgrade lodging when they travel within Canada.
For those travelling abroad, hotel costs may be comparatively cheaper in some destination countries than in major Canadian cities, thus influencing travel decisions.

Preferred Destinations Within Canada

Canadians both travel within their own country and abroad. Within Canada, some cities and regions are perennial favourites:

• Toronto, Ontario: As Canada’s largest city and multicultural hub, Toronto attracts both domestic travellers and international visitors.

• Montréal, Québec: With its vibrant cultural scene, European-style architecture and festivals, Montréal is a top Canadian destination.

• Vancouver, British Columbia: A gateway to nature, mountains and Pacific coast, Vancouver remains a major draw.

• Niagara Falls / Ontario border region: Classic Canadian tourist site.

• National parks and nature destinations: Places like Banff National Park, Jasper, the Canadian Rockies and Atlantic Canada (Nova Scotia, Newfoundland & Labrador) have appeal.

• Smaller cities and second-tier markets: As domestic travel rises, more Canadians are exploring less-crowded destinations for better value and unique experiences.

Although I did not locate a precise ranking of “most visited cities by Canadians within Canada” for 2025, the general pattern of top urban destinations plus nature/park regions holds.

Destinations Outside Canada & Percentage of Canadians Who Travel Abroad

While precise percentages vary, the data show substantial but declining levels of Canadian travel abroad. Statistics Canada reported multiple months in early 2025 where returns from abroad dropped by double digits. For example, March 2025 saw a 14.9 % drop in Canadian residents returning from abroad.
Additionally, the reduction in U.S. trips has been especially steep: one report noted land and air returns from the U.S. fell about 24% in March 2025.
Although I could not locate a single figure like “X% of Canadians prefer to travel outside Canada,” the trend suggests fewer are doing so compared to previous years. Meanwhile, the rise in domestic travel and internal tourism spending reflects that many Canadians either prefer or are choosing to travel within Canada.

Do Canadians Travel to Canada’s Own Borders / Stay Within Canada?

Yes — the data indicate many Canadians are staying closer to home. Domestic tourism spending increasing, and searches for domestic stays up 20% (Airbnb data) point to a strong inclination toward “stay-cation” or “intra-national travel”.
Many Canadians are likely taking advantage of affordable travel within Canada rather than long-haul international trips. For example, increased interest in domestic stays may be driven by cost concerns, easier logistics, and the appeal of exploring local destinations.

Are Hotels “Good and Not Expensive”?

Generally, Canadian travel infrastructure (hotels, resorts, lodges) is considered high quality — Canada maintains strong hospitality standards. Whether hotels are “not expensive” depends on region and season. Urban centres and high-tourist areas cost more; off-peak travel to smaller communities or rural hotels tends to be more budget-friendly.
Given the increase in accommodation spending domestically (+5.1% Q1) and the continued growth in domestic travel, it suggests many Canadians consider hotel stays within Canada viable and adequately priced. However, for budget-conscious travellers, choosing less mainstream destinations or off-season travel remains a strategy.

Trends & Key Insights for 2025

Several important insights characterise Canadian travel trends in 2025:

• Domestic travel growth: The domestic market is a major pillar, with spending projected at CAD $104 billion in 2025.

• Outbound travel softening: Canadian trips abroad are down in early 2025, particularly to the U.S.

• Shift in destination preference: Canadians increasingly exploring non-U.S. destinations or staying home. Airbnb data show a surge in domestic stay searches.

• Hotel/accommodation spending up domestically: Despite cautious consumer spending overall, accommodation for domestic travel saw stronger growth.

• Economic contribution: The travel and tourism sector in Canada is expected to contribute some CAD $183 billion in 2025 and support about 1.8 million jobs.

• Affordability and value: With hotel rates higher in major cities, value-seeking travellers often gravitate to smaller towns, national parks or off-peak periods.

• Hotel quality: Canadian hotel infrastructure is well-regarded; the challenge is finding the right price point in high-tourism zones or peak seasons.

Challenges & Considerations

While the outlook is positive, there are some challenges:

• High cost of travel and accommodation in peak markets: Big cities and popular tourist zones tend to be expensive, which can deter budget travellers.

• Rebound of international travel may compete with domestic demand: As global travel opens further, Canadian domestic travel may face competition for resources (flights, hotel rooms) and pricing.

• Dependence on certain destination markets: Many Canadians traditionally travelled to the U.S.; the shift away from the U.S. may open opportunities but also signals underlying vulnerabilities if Canadian outbound travel is heavily weighted toward few destinations.

• Seasonality: Many Canadian destinations have strong seasonal peaks (summer, winter ski seasons) and off-peak value may be good but weather constraints apply.

• Regional disparities: Some regions have excellent tourism infrastructure; others (rural or remote) may struggle with access, higher costs or lower lodging availability.

• Inflation, currency and cost pressures: Travel remains a discretionary expense; economic pressures at home may reduce travel budgets.

Major Canadian Cities & Places Most Visited

While exact 2025 rankings are not publicly aggregated in one place, the following destinations are consistently among the most visited:

• Toronto, Ontario: Canada’s largest city, major airport hub, cultural and business centre.

• Montréal, Québec: Known for festivals, historic sites, food culture and urban appeal.

• Vancouver, British Columbia: Access to nature + city amenities; gateway to the Pacific.

• Banff / Jasper / Rocky Mountains (Alberta/B.C.): Iconic national park destinations.

• Niagara Falls and surrounding Ontario region: Longstanding tourist draw.

• Québec City (Québec province): Historic city appeal and UNESCO designations.

• Atlantic Canada (Nova Scotia, Newfoundland & Labrador, New Brunswick, Prince Edward Island): Increasing appeal for domestic travellers seeking different scenery.

• Smaller towns and wilderness-adventure regions: As domestic travel diversifies, lesser-known regions are gaining.

What This Means for a Canadian Traveller

If you’re a Canadian looking to travel in 2025, here are a few takeaways:

1. Consider domestic travel: You’ll find strong value and quality lodging in many Canadian destinations, perhaps better affordability than abroad in some cases.

2. Book wisely: In major cities or peak seasons, hotel rates can soar — look at off-peak, smaller destinations or alternative accommodations (B&Bs, lodges).

3. Explore beyond the usual: Many Canadians are increasingly discovering lesser known Canadian destinations — this may lead to better value and uniqueness.

4. Outbound travel still possible: If you travel abroad, broaden your potential destinations beyond the U.S. Consider Mexico, Caribbean, Europe, or Asia, especially if cost and convenience align.

5. Be mindful of costs and timing: With economic pressures, pick travel times and destinations strategically.

1. Pay attention to travel infrastructure: Good hotel options, transportation, and local amenities matter — and many Canadian provinces have robust tourism infrastructure.

2. Stay informed: As the travel landscape continues to evolve in 2025, checking for deals, regional travel promotions and changing patterns (like exchange rate advantages) helps.

While taking off..

In 2025, travel in Canada is at an interesting crossroads. Domestic tourism remains strong and offers considerable value for Canadians who wish to explore their own country. Outbound travel is still an option, but fewer Canadians appear to be travelling abroad compared to past years — particularly to the U.S. Hotel quality across Canada is solid, though affordability depends on destination and season. For those willing to think outside the big city and plan ahead, Canada offers an appealing palette of destinations, from vibrant metropolises to nature-immersive getaways.

The major Canadian cities remain popular and well-equipped, but the growing interest in smaller destinations and domestic stays signals a shift in how Canadians travel. Whether for a weekend city break in Montréal, a mountaintop lodge in the Rockies, or an off-season exploring of Atlantic Canada, the options are numerous.

For Canadian travellers in 2025, the message is clear: explore your own country, look for value, and consider destinations beyond the usual. With smart planning, high-quality lodging, and evolving travel trends, this can be one of the best years to travel in Canada.