Canada Source Tourism Insight by Domestic and Outbound Tourism, Key Destinations and Tourist Profiles, 2024 Update

Canada Source Tourism Report Overview

The total outbound trips from Canada during 2023 reached 35.76 million, showing an accelerated recovery post the pandemic. The projected compound annual growth rate (CAGR) for international departures is more than 7% from 2023 to 2027. The US was the top destination market for Canadian outbound travelers in 2023.

The Canada source tourism market research report provides an in-depth analysis of source markets and infrastructure developments. The report also offers an in-depth understanding of Canada’s source tourism market highlighting possible opportunities and threats. Furthermore, a detailed evaluation of the types of travelers will help clients understand the demand side’s propensity.

Canada Source Tourism Market Segmentation

Domestic Tourism led the Canadian source tourism market by trip volumes in 2023

The key tourism types in the Canada source tourism market are domestic and outbound. In 2023, the total domestic trips reached 101.61 million reaching its pre-pandemic level. Canada’s geographical aspect is a significant factor in its tourism industry. Most of Canada’s domestic destinations come to engage in leisure activities, and they consider affordability to be their key factor in choosing their holiday. The revenue growth in the market is majorly from the transportation and food service sectors.

On the other hand, the number of international travelers from Canada surpassed its pre-pandemic level in 2023. This trend is largely attributed to the reopening of the borders and the resurgence of leisure travel.

Canada Source Tourism Market Analysis by Trips, 2023 (%)

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Canada Source Tourism Market Segmentation by Types

VFR was the most preferred holiday type for Canadian travelers in 2021

Sun and beach, visiting friends or family (VFR), city break, culture, and adventure/sport are a few of the common tourism types in the Canadian tourism market. The VFR type held the highest market share among the tourism types in 2021. Many people have immigrated to Canada, as the Canadian government has encouraged international residents to settle down in Canada through certain strategies and policies that have motivated international students to study and settle in the country. Post easing out of the COVID-19-induced travel restrictions, the demand for VFR is increasing steadily.

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

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Canada Source Tourism - Opportunities and Challenges

Canadians are increasingly conscious of environmental issues and seek destinations that prioritize sustainability. Emphasizing eco-tourism initiatives, such as wildlife conservation, green accommodations, and carbon offset programs, can differentiate a destination and appeal to the environmentally conscious Canadian market.

However, uncertainty in geopolitics and security concerns pose a danger to Canadian outbound travel. Such occurrences may result in travel warnings, limitations, or even the cancellation of scheduled travel, which may affect tourists’ confidence and willingness to visit the impacted areas. It is essential to recognize and respond to these security risks, as they may significantly influence Canadian tourists’ decision-making and cause them to gravitate toward locations that are thought to be more secure and safe.

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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

According to GlobalData’s consumer survey Q3 2021, Canadians often opt for visiting friends or family (VFR) holidays; 47% of respondents said that they opt for this, compared to the world average of 40%.

According to GlobalData’s Q3 2021 consumer survey, the most important factor that influences Canadian travelers’ holiday destination choice is affordability. Out of 538 respondents, 57% said that affordability influences their decision to choose a destination, which is in line with the global average (58%).

The overall domestic expenditure in Canada before the COVID pandemic was $19.69 billion in 2019, which has grown at a CAGR of 2.61% from 2015 to 2019. The average spend per domestic tourist was $161.80 in 2015, which increased to $210.7 in 2019, with a CAGR of 6.82% from 2015 to 2019, and is expected to reach $263.9 in 2027. The travel restrictions due to the COVID pandemic, which led to group gatherings, etc., have reduced the tourism spend, due to which the overall domestic expenditure reached $12.58 billion in 2020 and $14.63 billion in 2021, which wa lower than the pre-pandemic level in 2019.

According to GlobalData’s traveler demands and flows database, air is the most popular mode for Canadian travelers for their outbound trips. The total trips undertaken by air reached 18.38 million in 2023, which is an increase of 65.47% (7.27 million trips) in comparison with 2022 (11.10 million trips). However, this was lower than their pre-pandemic level in 2019 (18.72 million trips). It is expected that air-mode outbound trips will reach their pre-pandemic level in 2024 (20.70 million) and reach 25.00 million trips in 2027, with a CAGR of 8.00% from 2023 to 2027.

Reasons to Buy

This report provides:

• Get detailed insights into developments in Canada’s regional and outbound tourism markets.
• Get in-depth analysis of trends related to domestic trips, international departures, traveler spending, and main destination markets with data.
• Understand the profiles of Canadian tourists and the reasons for their travel, hence, providing an insight into the trends in different segments of the market.
• Interpret opportunities in the country, as well as the risks, to support better business decisions
• Gauge the impact of COVID-19 on Canada’s outbound and domestic tourism.