September overnight visitors dip slightly, but year‑to‑date arrivals remain strong

The drop is attributed to lower numbers from key markets including the United States, Mexico, France, and Germany. Despite the dip, year-to-date overnight arrivals remain up 9 per cent compared to the same period last year, driven by steady growth from several Destination Canada (DC) key markets.

The United States remains Canada's largest source of international overnight travellers, though numbers in September saw a 7 per cent decrease from 2023, with 1.2 million arrivals. However, year-to-date U.S. visitors are up 9 per cent, totalling 11.1 million. Notably, air arrivals from the U.S. increased by 12 per cent, suggesting a strong demand for Canadian destinations via air travel, while water and land arrivals showed declines.

Other markets that contributed to September’s decline include Mexico, where overnight arrivals fell by 39 per cent year-over-year to 25,000 visitors. France and Germany also recorded declines, with French visitors down 4 per cent (69,000 arrivals) and German travellers decreasing 5 per cent (42,000 arrivals). These figures reflect continued uneven recovery patterns in parts of the global travel market.

Conversely, several key international markets showed robust growth, offering positive signals for Canadian hoteliers. Japan saw a 19 per cent increase in overnight arrivals to 17,000 travellers, contributing to a 28 per cent year-to-date increase (108,000 total). South Korea similarly posted growth, with September arrivals up 5 per cent to 18,000 and year-to-date figures climbing 12 per cent. Notably, China—a market that has been slower to recover—showed a significant uptick, with September arrivals surging 34 per cent year-over-year to 29,000 visitors, pushing its year-to-date total to 220,000 (+56 per cent).

Australia also demonstrated steady improvement, with September visitors increasing 4 per cent to 28,000. Year-to-date, overnight arrivals from Australia are up 4 per cent to 205,000.

The mode of travel data provides further insight for Canada’s tourism and hospitality sectors. While land travel from the U.S. fell 11 per cent overall, air travel remained a bright spot, with increases from private vehicles and significant gains in air travel from the rest of the world. Air arrivals from non-U.S. international markets totalled 500,000 in September, representing a slight 3 per cent dip year-over-year but underscoring continued demand for Canadian air travel.

Implications for Canadian hoteliers

The mixed performance in September highlights the importance of focusing on markets that showed year-over-year growth, such as China, Japan, and South Korea, where overnight arrivals increased significantly. These regions, showing significant year-to-date increases, provide opportunities for hotels to tailor marketing initiatives and travel packages to meet visitor demand.

While the decline in U.S. travellers—Canada’s most vital market—is noteworthy, strong year-to-date performance suggests resilient interest, particularly for air travellers. Hotels in major gateway cities and air travel hubs may see greater returns by focusing on offerings for international tourists arriving by air.

As the year progresses, the steady 9 per cent year-to-date growth in overnight arrivals indicates Canada’s tourism recovery remains on track, with opportunities for hoteliers to capitalize on rising demand from key international markets.