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Despite diplomatic tensions, Canada's tourism sector has bucked the trend and outperformed the broader market
Tensions between Canada and the United States may have deterred Canadians from traveling to their neighbor, but this does not appear to have dampened tourism spending in Canada. The latest data from Statistics Canada shows that the tourism sector’s real GDP grew by 0.9% in the third quarter of 2025, matching the growth rate of the previous quarter and outpacing the 0.5% growth rate of the overall economy. Tourism spending rose by 0.7% in the third quarter, compared with a 0.9% increase in the second quarter. Tourism spending by international visitors in Canada grew by 1.2%, with gains across all sectors, rebounding from a 5.6% plunge in the second quarter. Tourism spending by Canadian residents also increased by 0.5%, with gains in accommodation services, pre-trip spending, and vehicle rental fees offsetting a decline in air travel spending.
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