Inbound international travel

The number of foreign residents visiting Canada declined consistently between 2000 and 2009. This trend was largely due to the rising value of commodities, which caused the value of the Canadian dollar to rise. In turn, the increased value of the Canadian dollar made it relatively expensive for foreigners to travel to, stay in and shop in Canada. The global financial crisis caused particularly pronounced declines in 2008 and 2009, when the number of inbound trips to Canada fell 9.9% and 9.8%, respectively. However, this trend has reversed, starting in 2010, as individuals visited Canada for major events, such as the winter Olympics, over the subsequent decade. A partnership between China and Canada to boost tourism has also placed upward pressure on inbound travel to Canada.

The pandemic significantly disrupted international travel in 2020, including travel to Canada. Many countries, such as Canada, placed significant restrictions on inbound travelers to reduce the spread of the virus. Canada has had particularly stringent border crossings and air travel restrictions throughout most of the pandemic. Despite a historically weak Canadian dollar, inbound travel declined 84.4% in 2020, the largest decline on record. Moreover, inbound travel declined a further 15.5% in 2021 as travel restrictions remained in place for much of the year.

In 2022, inbound travel has rebounded significantly as travel restrictions eased for vaccinated individuals from multiple countries. Canada also lifted the travel restrictions in September 2022, which removed the requirement that travelers need to be vaccinated and also need to test before entering the country. In turn, travel by international residents to Canada spiked by 318.6% in the year. Inbound travel continued its rebound in 2023, with international travel into Canada expanding 51.8%. However various factors like recessionary fears within 2024 are set to temper travel activity even as it is set to expand by 9.6% with the expectation that the economy might avoid a recession, which will help boost up travel activity concurrently. However, with the United States accounting for about 80% of total travellers entering Canada, the ongoing tariff tension between the US and Canada is projected to impact travel relationships. As a result, inbound international travel is expected to fall in 2025.