Hospitality Industry in Canada: Statistics and Facts

The Canadian Hospitality Industry in 2025 and 2026

Canadas hospitality industry had one of its strongest years on record in 2025. Hotels reached an all time high in revenue per available room, restaurants pushed total foodservice sales toward 124 billion Canadian dollars, and tourism delivered a total economic footprint of about 263 billion dollars. The sector now supports close to one in ten jobs across the country.

Hospitality in Canada covers hotels and resorts, restaurants and bars, travel and tourism, events and entertainment. Operators have leaned on self service check in, mobile keys and artificial intelligence tools to manage guest demand against a tight labour market. On Mordor Intelligence figures the core hospitality market was valued at about 20.29 billion US dollars in 2025 and is projected to reach 27.46 billion by 2031, a compound annual growth rate of 5.18 percent, part of the wider global tourism recovery that has run since the pandemic.

This report on hospitality industry statistics in Canada tracks how hotels, restaurants and tourism performed through 2025 and into 2026, and where the numbers are heading. The headline story is a record year built on strong pricing rather than a surge in room nights, with performance uneven across provinces and clouded by trade tensions with the United States.

Canadas hotel industry reported its highest annual top line performance on record in 2025. National occupancy climbed to 66.1 percent, ADR rose 3.5 percent to about 216 Canadian dollars, and RevPAR reached a record 142.89 dollars, up more than 4 percent on 2024. Western markets led the country while some eastern cities slipped, a split our most visited countries coverage tracks across destinations.

The wider travel and tourism economy was even larger. Tourism generated about 130 billion dollars in direct visitor spending in 2024, more than 350 million dollars a day, powering a total economic footprint of 263 billion dollars. International visitors injected 31.2 billion dollars of new export earnings, making tourism the second largest service export, a pattern the online travel market continues to reshape worldwide.

A record year on pricing: national RevPAR climbed to a record 142.89 dollars in 2025 as occupancy held near 66 percent, with the deep trough of 2020 now far behind.

The recovery has not been smooth. Room revenue collapsed during the pandemic, rebounded through 2022 and 2023, and reached fresh records in 2024 and 2025 driven by pricing power rather than a flood of extra guests. That pattern, strong rates against flat occupancy, is expected to continue into 2026, a dynamic our hotel industry in China coverage also tracks in other large markets.

A note on the data. The figures here draw on CoStar and Cushman and Wakefield for hotel performance, Mordor Intelligence for market size, Destination Canada and Statistics Canada for tourism, Restaurants Canada for foodservice, and Lodging Econometrics for the construction pipeline. Values are in Canadian dollars unless marked as US dollars, and figures for 2026 and beyond are forecasts or partial year readings.

Canada Hospitality Statistics at a Glance

The table brings the headline numbers together. It shows a sector that has moved from recovery into a record but slower growth phase, where pricing, provincial mix and the construction pipeline matter more than the raw rebound in demand that defined the years right after the pandemic.

How Big Is the Hospitality Market in Canada?

The core hospitality market in Canada was valued at about 20.29 billion US dollars in 2025 on Mordor Intelligence figures, and is projected to reach 21.34 billion in 2026 and 27.46 billion by 2031. That is a compound annual growth rate of 5.18 percent over the forecast period, faster than the wider economy.

These figures use a revised estimation framework, so they sit below older headline numbers that valued the sector closer to 39 billion dollars. Different research houses draw the boundaries of hospitality differently, which is why estimates range widely, a point that also shows up across our richest countries coverage where measurement choices shape the totals.

Wider definitions produce much larger numbers. The Canada travel and tourism market was valued at about 90 billion US dollars in 2025 and is projected to reach roughly 114 billion by 2030, while Grand View Research puts the hotels subset alone at about 42 billion dollars in 2024 growing at 8.5 percent a year to 2030. The direction of travel is the same across all of them, steady growth built on population gains and rising room rates, a trend our GDP per capita coverage frames against incomes.

Ontario led the market with about 29.75 percent share in 2025, while British Columbia is forecast to grow fastest at a 5.85 percent rate through 2031. Immigration added a record 1.3 million residents in 2024, expanding the domestic customer base for every part of hospitality and directly supporting hotel and restaurant demand, an effect our immigration statistics coverage examines in a North American context.

Steady climb to 2031: the Canada hospitality market is projected to grow from about 20 billion US dollars in 2025 to more than 27 billion by 2031 at a 5.18 percent annual rate.

The growth reflects structural change as much as recovery. Corporate sustainability rules, mega event preparation and tighter short term rental regulation are reshaping demand, while rising inbound travel from the United States lifts the average length of stay and pushes guests toward boutique hotels offering authentic local experiences.

How Much Does Tourism Contribute to the Canadian Economy?

Tourism generated about 130 billion Canadian dollars in direct visitor spending in 2024, which fed through to a total economic footprint of about 263 billion dollars once indirect and induced effects are counted. That direct spending works out at more than 350 million dollars every day.

Domestic travellers did most of the heavy lifting, spending about 95.7 billion dollars, while visitors from the United States added roughly 15.6 billion and other overseas visitors about 12.9 billion. International visitors together injected 31.2 billion dollars of new export earnings, which makes tourism the second largest service export for the country, ahead of many goods categories tracked in our global economy coverage.

Government also takes a large slice. Tourism contributed about 32.7 billion dollars to government revenue in 2024, up 5.1 percent on the prior year, with roughly a quarter of every tourism dollar flowing back to federal, provincial and municipal treasuries through taxes. Summer 2025 set fresh records, with domestic tourism revenue of 44.37 billion dollars in the season and international revenue of 14.59 billion, as national hotel occupancy touched 80.7 percent in August, the highest for that month since 2014.

From spending to impact: about 130 billion dollars of direct visitor spending in 2024, led by domestic travellers, grows to a 263 billion dollar total economic footprint once indirect and induced effects are added.

A large share of the recent gain came from Canadians choosing to travel at home rather than abroad. Destination Canada estimates that reshored domestic tourism added about 1.5 billion dollars in 2025 and could contribute several billion cumulatively through 2027, a stabilising buffer while cross border travel to the United States softened under trade tensions.

What Is Driving Growth in Canadian Hospitality?

Several forces are pushing the sector forward at once. Record immigration has enlarged the domestic market, domestic travel has surged as Canadians stay home, business and group travel has recovered, and major events have lifted demand in gateway cities. Technology adoption and a sustainability premium round out the picture.

Domestic demand is the single biggest engine. Residents account for roughly three quarters of tourism spending, and overnight domestic trips reached about 105.6 million in 2024, up 8.8 percent on the year. Business travel has firmed up in Toronto, Ottawa, Calgary and Vancouver, echoing the recovery our business travel in the US coverage records across North America.

Technology is reshaping operations. Self service check in kiosks, mobile keys, dynamic pricing and chatbot concierge tools are being deployed quickly to lift the guest experience and offset staffing shortfalls, part of a wider digital shift that our business travel in Europe coverage also documents. Sustainability has moved from niche to standard, with eco certified properties commanding measurable rate premiums among younger travellers.

Many engines at once: domestic travel and immigration are the strongest drivers of Canadian hospitality demand, with technology, events and sustainability adding further lift on an indexed scale.

Not every force pulls in the same direction. Federal cuts to international student visas and temporary foreign worker permits are tightening the labour pool even as demand grows, and affordability pressure has led many households to trade down or eat out less often, tempering the pace of growth into 2026.

How Has Hotel Occupancy Changed in Canada?

National hotel occupancy recovered from a pandemic low near 35 percent to about 66 percent by 2025, roughly its pre pandemic level. The national rate has settled into a narrow band, with CBRE forecasting occupancy to hold at no more than 66 percent through 2027 as new supply slowly returns.

The pattern since 2019 is one of a sharp crash, a rapid rebound and then a plateau. Occupancy fell hard in 2020 as travel stopped, climbed back through 2022 and 2023, and stabilised near its ceiling in 2024 and 2025. With supply and demand roughly balanced, further top line growth now depends far more on room rates than on filling extra rooms, a dynamic that separates the current cycle from the recovery years.

Seasonality remains pronounced. Summer occupancy runs far above the annual average, touching 80.7 percent nationally in August 2025, while winter months sit well below. That seasonal swing shapes staffing, pricing and investment decisions across the calendar, and it is sharper in resort and outdoor destinations than in the big urban markets.

Crash then plateau: occupancy fell to about 35 percent in 2020, rebounded through 2023, and has settled near its 66 percent ceiling in 2025 and 2026.

Because occupancy is close to full for practical purposes in the strongest markets, operators have leaned on pricing to grow revenue. That is why RevPAR set records in 2024 and 2025 even though the number of rooms sold barely moved, a distinction that matters for anyone reading the headline growth figures.

Which Provinces Lead Canadian Hotel Performance?

British Columbia led the country in 2025 on every key hotel metric, with occupancy of 70.4 percent, an average daily rate of 257.03 Canadian dollars and revenue per available room of 180.92 dollars. Vancouver was the standout market, reaching 78.4 percent occupancy and an ADR of 284.44 dollars.

Performance was uneven across the country. Western markets outperformed while Ontario and Quebec were the only provinces to see occupancy slip, down 0.6 percent and 1.3 percent respectively, as border areas and markets tied closely to the United States felt the drag of trade tensions. Toronto still posted the largest rate gains in the country during the autumn, with ADR up 14.8 percent to 294.90 dollars around the 2025 World Series.

Montreal was the weakest major market, with occupancy easing to 66.6 percent and RevPAR slipping to 155.87 dollars. Even so, every province and territory recorded higher room rates in 2025, underscoring that pricing power was the common thread nationwide, a theme that echoes across our accommodation industry in Germany coverage of mature hotel markets.

The west out in front: British Columbia and Vancouver led Canadian hotel RevPAR in 2025, while Montreal trailed the major markets.

The provincial split has clear investment implications. British Columbia is forecast to grow fastest through 2031, helped by Vancouver international air links and resort demand, while Ontario remains the largest market by share and by construction pipeline despite its slight occupancy dip in 2025.

How Big Is Canadas Foodservice Industry?

Canadas total foodservice industry was forecast at about 124 billion Canadian dollars in 2025, according to Restaurants Canada. Of that, roughly 100 billion, or 81 percent, came from commercial foodservice such as full service restaurants, quick service outlets and bars, with the rest from non commercial and institutional dining.

The year turned out better than feared. A goods and services tax holiday at the start of 2025 lifted sales sharply, and commercial foodservice revenue rose about 5.4 percent before inflation over the year, outperforming earlier forecasts that had warned of a possible contraction. After adjusting for menu inflation, real sales still grew about 2.1 percent, supported by population growth and a strong domestic tourism season.

Restaurants also proved to be a job engine, adding about 23,600 positions in the first nine months of 2025, more than the wider private sector managed over the same period. Delivery and quick service formats kept gaining share, with app based ordering, third party delivery and loyalty programmes reshaping how Canadians eat out, a shift our most valuable quick service brands coverage tracks worldwide.

Past the pre pandemic peak: total foodservice sales fell during the pandemic, recovered strongly, and reached about 124 billion dollars in 2025 on record demand.

The outlook for 2026 has been trimmed to about 2.3 percent growth, reflecting affordability pressure, a tariff dispute with the United States and the base effect of the strong summer of 2025. Growth is then expected to settle back toward more sustainable pre pandemic rates from 2027 onward.

How Is Commercial Foodservice Split by Segment?

Within commercial foodservice, full service restaurants are the largest segment at roughly 49.5 billion Canadian dollars in annual revenue, supported by around 79,000 establishments. Quick service and fast food outlets add about 37 billion dollars across some 21,000 locations, with the remainder coming from caterers, drinking places and other formats.

Together these restaurants employ about 1.2 million people, which makes foodservice one of the largest entry level employers in the country. Full service venues have grown slowly, while limited service and delivery focused formats have expanded faster on the back of affordability, convenience and busy lifestyles, a pattern visible across major chains including those in our Starbucks revenue coverage.

Digital ordering is now a core driver rather than an add on. A majority of Canadians order delivery through third party apps, and viral food trends on social media increasingly shape what people order, especially among younger diners who account for most impulse delivery orders.

Full service still largest: full service restaurants make up the biggest slice of commercial foodservice at about 49.5 billion dollars, ahead of quick service at roughly 37 billion.

Sustainability in sourcing, shorter menus and locally sourced ingredients have become standard expectations in major urban markets. Ghost kitchens and delivery only brands continue to blur the line between formats, giving operators new ways to reach customers without the cost of a full dining room.

Where Do Canadas International Visitors Come From?

Canada welcomed about 29.8 million trips from abroad in 2024. The United States dominated with roughly 23.46 million trips, far ahead of every other source, underlining how closely the visitor economy is tied to its southern neighbour.

Beyond the United States, the United Kingdom sent about 843,000 visitors, France about 642,000, India about 439,000 and Mexico about 432,000. That concentration means shifts in the Canadian dollar exchange rate and in Canada United States relations have an outsized effect on inbound demand, a sensitivity our most visited cities coverage tracks across global gateways.

In 2025 the mix shifted as fewer Canadians travelled to the United States and international visitor spending stabilised after a soft patch. International visitors accounted for a little over a fifth of total tourism spending by the third quarter of 2025, while domestic travel carried the rest, keeping the sector resilient even as some source markets stayed below pre pandemic volumes.

One market above all: the United States accounted for about 23.5 million of Canadas 29.8 million trips from abroad in 2024, dwarfing the United Kingdom, France, India and Mexico.

This dependence cuts both ways. It gives Canada a huge, nearby and high spending source market, but it also leaves the visitor economy exposed to United States policy, exchange rates and the health of the American consumer, which is why diversifying toward Europe and Asia is a stated policy goal.

How Many People Work in Canadian Hospitality?

About 1.9 million people work across Canadas tourism industries, close to one in ten of all jobs in the country. Direct tourism jobs, a narrower measure, numbered about 712,100 in the second quarter of 2025, spread across accommodation, food and beverage, transportation, recreation and travel services.

Labour shortages remain the sectors single biggest operational challenge. Accommodation and food services carried the highest job vacancy rate of any part of the economy at about 4.1 percent in the second quarter of 2025, roughly 46 percent above the all industry average. In Ontario alone there were about 22,070 unfilled positions and a 4.5 percent vacancy rate, well above the 2.8 percent rate across all industries in the province.

The squeeze has tightened further as federal reductions in international student visas and temporary foreign worker permits shrink the pool of available staff. Wage growth has outpaced room rate growth in several markets, compressing operator margins and hitting smaller independent businesses hardest, which is accelerating consolidation across the industry.

Despite the shortages, hospitality remains a vital entry point for young people and newcomers, offering pathways into long term careers. The sector added jobs even in quarters when overall Canadian employment fell, reinforcing its role as a reliable job generator across the country.

What Was the Impact of the FIFA World Cup 2026 on Canada?

Canada co hosted the FIFA World Cup in June and July 2026, staging 13 matches across Toronto and Vancouver. FIFA estimated the tournament could deliver up to 3.8 billion Canadian dollars in positive economic output for the country, with Vancouver and Toronto at the centre of the activity, a build up our 2026 FIFA World Cup coverage followed through the planning years.

The reality was more modest than the biggest pre tournament forecasts. Early data pointed to a real but short lived bump rather than a lasting transformation. Preliminary figures showed total international arrivals in June up only about 5 percent on the prior year, and BMO Economics estimated tournament related tourism gains of between 1 billion and 5 billion dollars, describing the effect as a concentrated, temporary lift.

The spending that did occur was highly concentrated around match days and host cities. Payment data showed matchday spending rising as much as 24.6 percent in Toronto and 12.7 percent in Vancouver against the same period in 2025, the classic pattern of a pop up economy tied to a major event, a dynamic our FIFA World Cup 2026 tourism impact coverage examines in detail.

Hosting was not cheap. Public spending on the 13 Canadian matches came to more than 1 billion dollars across all levels of government, or an average near 82 million dollars per game. The longer term hope is that improved infrastructure and global exposure lift Canadas standing as a destination well beyond the tournament itself, even if the immediate return was smaller than promoters had suggested.

What Is the Outlook for Canadian Hospitality?

The outlook is for steady rather than spectacular growth. Tourism is forecast to reach about 160 billion Canadian dollars in direct annual revenue by 2030, on a compound annual growth rate near 5.4 percent, while the wider travel and tourism sector is projected by the WTTC to contribute 233.5 billion dollars and support more than 2.1 million jobs by 2035.

Hotels are expected to keep setting records, but through pricing rather than occupancy. CoStar forecasts national RevPAR growth of about 1.9 percent in 2026, ahead of the United States, with ADR projected to rise toward 216 dollars in 2026 and 221 dollars in 2027 as occupancy holds near its ceiling. The record construction pipeline, at 345 projects and 47,874 rooms in the second quarter of 2026, signals deep long term confidence even as near term supply growth stays modest at around 1.2 percent.

Risks are real. A tariff dispute with the United States, cuts to immigration and temporary worker permits, affordability pressure on households, and a tight labour market all cloud the picture. The sector is expected to outpace overall Canadian output, but the pace will depend on trade, consumer confidence and how quickly staffing pressures ease.

The road to 2030: tourism direct revenue is projected to climb toward 160 billion dollars by 2030 on a growth path near 5.4 percent a year.

Most future growth is expected to come from a gradual return of international visitors and continued strength in domestic travel, supported by federal programmes aimed at attracting conventions and events. The long run WTTC projection to 2035 reinforces the same message, a sector set to keep expanding faster than the wider economy if it can invest through the near term headwinds.

Canadian Hospitality in Numbers

A handful of figures capture the state of the sector. Hotels set an all time RevPAR record of 142.89 Canadian dollars in 2025, foodservice sales reached about 124 billion dollars, tourism delivered a 263 billion dollar economic footprint in 2024, and the hospitality market was valued at about 20.29 billion US dollars. Together they describe an industry that has moved past recovery into a record but more measured phase of growth.

These numbers matter because hospitality touches jobs, trade, tax revenue and communities in every province. The sector supports about 265,800 businesses across more than 5,000 communities, and roughly one in ten jobs in the country depends on tourism related activity, which is why its health is a national economic story rather than a niche one.

For now the Canadian hospitality industry stands at a record high on most measures, built on strong pricing, resilient domestic demand and a construction pipeline at its most active in decades. The task ahead is to sustain that momentum through trade tensions, labour shortages and affordability pressure into the end of the decade.

Frequently Asked Questions: Canada Hospitality Industry