Canada Source Tourism Insight by Domestic and Outbound Tourism, Key Destinations and Tourist Profiles, 2023 Update

Canada Source Tourism Market Report Overview

The Canada source tourism market research report provides a thorough insight into the Canada’s domestic and outbound tourism market. The report looks at the profiles of Canadian tourists and summarizes the key reasons that they travel. The report offers an in-depth analysis of traveler flows, spending patterns, main destination markets and current and future opportunities for tourism businesses seeking to tap into the Canadian outbound travel market.

Canada Source Tourism Market Dynamics

The recovery of international travel from Canada is expected to be gradual, with projections indicating that it may not reach pre-pandemic levels until 2024. The number of international departures is anticipated to slightly decrease in 2023 before experiencing a compound annual growth rate of more than 6% between 2023 and 2027. The Canadian tourism market will heavily rely on leisure and visiting friends and relatives (VFR) travel to spearhead its recovery efforts.

Furthermore, domestic tourist expenditure remained relatively stable from 2017 to 2019 but experienced a significant decline in 2020 due to the pandemic. However, there was a noticeable recovery in expenditure in 2021, particularly in sectors such as accommodation, entertainment, and foodservice.

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Canada Source Tourism Market Segments

The key segments in the Canada source tourism market are domestic tourism and outbound tourism. Domestic tourism was the leading segment in the Canada source tourism market in 2022.

Domestic Tourism: During 2017 to 2019, the number of domestic trips remained relatively stable in Canada, with a slight decline in 2018 and 2019. However, in 2020, there was a significant drop in the total number of domestic trips, likely due to the impact of the COVID-19 pandemic and associated travel restrictions. As travel restrictions began to ease in 2021, there was a slight recovery, but the number of trips remained lower compared to pre-pandemic levels. For the upcoming years, 2023 to 2027, a gradual increase in domestic trips can be expected, indicating a potential recovery and growth in domestic tourism over time.

Outbound Tourism: Transportation and retail have consistently been the top spending channels for Canadian tourists abroad. Canada is known for its high airport taxes and user fees which adds a significant cost to the ticket price. It is important to consider the impact of these fees on the overall cost of travel to Canada. It is essential for the government, airports, and industry stakeholders to find a balance between funding airport operations and infrastructure development while maintaining affordability for travelers. This may involve reviewing the fee structure, exploring alternative sources of funding, or implementing strategies to enhance the value and quality of services provided at airports.

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Canada Source Tourism Market Segmentation by Holiday Types

The types of holidays preferred by tourists from Canada are sun & beach holidays, cultural holidays, city break holidays, visiting friends or family, gastronomical holidays, adventure/sports holidays, multi-stop trip holidays, wellness/medical holidays, cruise, eco holidays, LGBTQ holidays, wedding-related holidays, and religious holidays, among others. In 2021, visiting family and friends’ holidays were the most popular with Canadian tourists.

Canada Source Tourism Market Analysis by Holiday Types, 2021 (%)

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Segments Covered in the Report

Canada Source Tourism Market Segments Outlook

• Domestic Tourism
• Outbound Tourism

Canada Source Tourism Market Holiday Types

• Sun & Beach Holidays
• Visiting Friends or Family
• Cruise
• Adventure/Sports Holidays
• City Break Holidays
• Religious Holidays
• Gastronomical Holidays
• Eco Holidays
• Cultural Holidays
• Wellness/Medical Holidays
• Multi-Stop Trip Holidays
• Wedding-Related Holidays
• LGBTQ Holidays

Scope

This report is part of GlobalData’s Source Market Insights Series. This report provides an in-depth analysis of traveler flows, spending patterns, main destination markets, as well as current and future opportunities for tourism businesses seeking to tap into the outbound travel market.

Key Highlights

Transportation and retail have consistently been the top spending channels for Canadian tourists abroad. Transportation comprised xx% of the total outbound tourism expenditure in 2022. Canada is known for its high airport taxes and user fees which adds a significant cost to the ticket price.

According to the GlobalData Consumer Survey Q4 2021, Canadian travelers predominantly opt for online travel agents when it comes to booking their vacations, with xx% of respondents favoring this method. It’s not unexpected that Canadian online travel sales experienced a remarkable compound annual growth rate (CAGR) of xx% prior to the COVID-19 pandemic, spanning from 2014 to 2019.

The demographic of Canadian travelers between the ages of xx and xx is the most engaged in travel activities. The demographic characterized by higher disposable income, fewer economic constraints, and fewer dependents is often associated with unrestricted travel opportunities.

Turkey is becoming a developing destination market for Canadian tourists. The number of Canadian tourists departing for Turkey has shown a steady increase from xx to xx from xx million to xx million with a CAGR of xx%, highlighting the growing interest in the destination.

Reasons to Buy

• This report provides clear insight into developments in Canada’s regional and outbound tourism markets. The report uses data and analysis to discuss future trends related to domestic trips, international departures, traveler spending, and main destination markets.
• The report explores the different profiles of Canadian tourists and the reasons that they travel, hence providing an insight into the trends in different segments of the market. The reader gains a strong understanding of the opportunities in the country, as well as the risks, to support better business decisions.
• This report examines the impact of COVID-19 on Canada’s outbound and domestic tourism.