With household budgets under pressure and tariffs still in place, more Canadians are choosing to spend their travel dollars at home.

New data shows hotel and short-term rental occupancy in Canada climbed more than a percentage point last month compared to June 2024. This stands in contrast to the United States, where occupancy rates fell over the same period.

The shift is part of a broader trend. Domestic tourism spending in Canada rose four per cent in the first quarter of 2025, according to Destination Canada. Airbnb also reported a 20 per cent increase in searches for Canadian destinations earlier this year. Meanwhile, return trips from the U.S. by Canadians were down 32 per cent in May.

As households tighten their budgets amid inflation and growing debt, many travellers are adjusting their plans rather than cancelling them outright. Instead of costly international flights or resort vacations, shorter domestic getaways and local road trips are becoming more popular.

Despite a marked slowdown in post-pandemic travel growth — with TD forecasting a tourism spending increase of only two to four per cent this year, compared to 15 per cent annually during the rebound period — domestic travellers are keeping the industry afloat.

The cost of living crisis, however, continues to weigh heavily. With fuel, food, and accommodation prices still elevated, some Canadians are scaling back on vacation length or choosing lower-cost options such as campgrounds or provincial parks.

While the number of foreign visitors has dropped, many Canadian destinations, particularly in smaller communities and rural regions, are seeing steady or increased interest from local travellers.

Rather than abandoning plans altogether, many are choosing to roam closer to home — a decision that’s helping prop up tourism during uncertain times.