Canadians appear determined to pursue their travel aspirations this year, despite facing increased transportation costs and economic uncertainties, according to a recent survey conducted by the Business Development Bank of Canada (BDC). The findings, released on Wednesday, indicate that a significant majority of Canadians are opting for domestic trips, a shift that could infuse billions into the economy. The survey suggests that nine out of ten Canadians have travel plans for 2026, with 92 per cent intending to explore destinations within their own country.
Domestic Travel on the Rise
The survey revealed that while 70 per cent of respondents are considering international travel, only 30 per cent have plans for trips to the United States. Many Canadians are evidently avoiding U.S. travel due to ongoing socio-political tensions. This inclination towards domestic tourism is not merely a reaction to external factors; it also stems from a desire to rediscover Canada’s varied landscapes and experiences. In fact, 45 per cent of those surveyed expressed a wish to explore “Canada’s diverse regions,” highlighting a growing appreciation for local attractions.
The BDC estimates that if every Canadian traveller were to replace just one overnight trip abroad with a day of exploration within Canada, it could generate a staggering $4.6 billion in additional GDP. Pierre Cléroux, the BDC’s chief economist, remarked on the potential benefits, stating, “If there are more people travelling in Canada, the industry will grow, leading to more job opportunities. This will significantly impact the Canadian economy.”
Spending Trends and Travel Choices
On average, Canadian households anticipate spending around £7,000 on their travel plans this year, with a substantial portion earmarked for domestic adventures. The survey found that at least one-third of this budget is expected to be spent within Canada. Despite inflation concerns, Canadians are willing to make adjustments to their travel choices; 81 per cent reported making affordability-related compromises, such as opting for budget accommodations and selecting off-peak travel dates.
Interestingly, the survey highlighted that Canadians spent, on average, £43 less per night when travelling domestically compared to international trips last year. This trend suggests that, while energy costs may be rising, they have not deterred Canadians from planning travel.
Economic Implications of Travel Choices
The survey, which gathered responses from 1,000 Canadian adults between February 25 and March 3, reflects sentiments formed both before and after the recent escalation of tensions involving the U.S. and Israel. Despite these challenges, the BDC remains optimistic about the upcoming tourism season. The stability of the Canadian dollar, albeit weak against the U.S. dollar, is expected to attract foreign visitors while encouraging Canadians to spend their travel budgets domestically.
Moreover, the report notes that accommodation prices in Canada have adjusted downward over the past year, helping to balance out rising energy costs. Cléroux acknowledged the impact of fuel prices on consumer behaviour but reassured that they constitute only a small fraction of most Canadians’ budgets. “It’s annoying when we go to put some gasoline in the car, but it doesn’t fundamentally shift the budget for many Canadians,” he said.
Continued Momentum in Tourism
This year’s optimistic outlook comes on the heels of a record-breaking year for Canada’s domestic tourism sector in 2025, driven by a notable increase in spending by Canadian travellers. Statistics Canada reported a 2.5 per cent rise in domestic spending from 2024, which helped offset a slight decline in international tourist spending. While travel to the U.S. has seen a sharp decline of 25 per cent since late 2024—following political tensions—there are signs of a slight uptick in return trips last month.
Cléroux remains hopeful for the trajectory of the tourism sector, stating, “We still believe that 2026 will be a positive year. We’re not forecasting a recession, which means Canadians will maintain their capacity to travel. The early months of this year aren’t expected to significantly impact travel decisions.”
Why it Matters
The shift towards domestic travel among Canadians not only underscores a growing appreciation for local destinations but also presents significant economic opportunities. As the tourism sector continues to evolve, the potential for enhanced job creation and increased GDP is substantial. This trend reflects a broader resilience in consumer behaviour, suggesting that Canadians are not just adapting to economic pressures but actively seeking to support their own economy while exploring the beauty and diversity of their homeland.
