Tourism’s Role in Strengthening the Canadian Economy and Supporting a Sustainable Future

With the U.S. trade war now creating uncertainty for many Canadian industries, tourism can serve as a key economic driver by boosting domestic travel, attracting value-aligned international visitors. At a time when Canadian pride is reaching new heights, tourism offers a powerful way to share our national identity with the world while strengthening local economies.

Tourism plays a vital role in Canada’s economy, supporting local businesses, creating jobs, and fostering regional growth. And, unlike trade-dependent industries, tourism brings revenue directly into local economies through visitor spending.

At the same time, the tourism industry has an opportunity to contribute to a more sustainable future by making thoughtful choices about how visitors experience Canada. According to research by the Travel Foundation, long-haul flights are among the most challenging areas to decarbonize, making it essential for the tourism industry to adopt strategies that align with both economic prosperity and sustainability goals.

By prioritizing markets that align with Canada’s strengths, tourism businesses can play a pivotal role in mitigating the economic effects of these trade barriers while reinforcing Canada’s position as a desirable and responsible travel destination. The industry can achieve this by focusing on key traveller segments—domestic tourists and socially and environmentally conscious U.S. travellers—while also embracing strategies that reshape demand, renew tourism offerings, and strengthen collaboration across the sector.

1. Doubling Down on the Domestic Traveller

With increasing U.S. tariffs and a growing “Buy Canada” sentiment, now is the perfect time for Canada’s tourism industry to encourage more domestic travel. Canadians are already inclined to support local businesses, and vacationing closer to home offers economic, cultural, and environmental benefits. Encouraging domestic tourism allows Canadians to explore their own country’s diverse landscapes and experiences while reducing reliance on international travel.

Key Strategies:

• Promote local experiences: Encourage Canadians to rediscover their own backyard through region-specific marketing campaigns that highlight hidden gems, road trip itineraries, and unique seasonal activities.
• Offer incentives: Discounts for domestic travellers, loyalty programs, and exclusive deals for Canadian residents can make domestic travel more appealing.
• Leverage patriotic sentiment: Align marketing campaigns with the broader “Buy Canada” movement to emphasize how travelling locally supports communities, businesses, and job creation.

2. Attracting the Progressive U.S. Traveller

Canada is recognized as a leader in environmental and social sustainability within the tourism industry. Many U.S. travellers are looking for destinations that align with their values, offering responsible and regenerative travel experiences. With growing interest in sustainable tourism, Canada has a unique opportunity to welcome visitors who prioritize ethical and low-impact travel. There is no better time than now, when many Americans are looking to find ways to support Canada’s economy. Our southern neighbours will also benefit from an exchange rate in their favour. 

Key Strategies:

• Highlight Canada’s leadership in sustainability: Showcase certified accommodations, attractions and experiences, regenerative tourism initiatives, and conservation efforts that align with the values of conscious travellers.
• Promote cultural tourism experiences: Indigenous tourism and other community-led cultural experiences can differentiate Canada as a destination that supports equity and inclusion while celebrating our diverse cultural heritage.
• Target values-based travel segments: Focus on marketing to socially and environmentally conscious travellers, adventure travellers, and those looking for unique and sustainable alternatives to traditional vacation destinations.

3. Additional Strategies to Strengthen Sustainable Tourism in Canada

Beyond targeting key traveller segments, the Canadian tourism industry can implement broad strategies to align with sustainability goals and enhance economic resilience.

• Shaping demand instead of following it: The tourism sector can proactively encourage travel patterns that support sustainability and strong economic returns rather than simply reacting to existing market demand. This includes who we market to, what messages we are sending, and therefore what types of travel behavior we are promoting.
• Prioritizing high-value, low-carbon travel: Identifying what markets provide the highest value and lowest carbon footprint, combined with incentivizing longer stays, will reduce the average carbon footprint for each visitor day.
• Working together to achieve all of these objectives: Collaborating amongst local, regional, provincial and national DMOs and businesses to align on messaging will significantly increase the impact that these strategies can have on both Canada’s economy and the positive environmental impacts made by our tourism sector.

By focusing on key traveller segments and implementing sustainable tourism strategies, Canada’s tourism industry can drive economic resilience while leading the way in responsible tourism. Encouraging domestic travel fosters local growth, attracting sustainability-focused U.S. travellers strengthens Canada’s position as a leader in responsible tourism, and broader strategies ensure that tourism development aligns with long-term environmental and economic goals.

This approach allows Canada to thrive as a travel destination while also reducing impacts on the planet. Now is the time to embrace the opportunity and demonstrate how tourism can be a powerful force for both economic success and environmental stewardship.

GreenStep helps tourism businesses, destinations, and industry associations looking to take meaningful and measurable action on sustainability and climate change. Reach out for a free consultation to learn more.

GreenStep works with tourism businesses and destinations across Canada and globally to help them measure, improve and certify their sustainability performance.