A new survey reveals that 43% of Canadians are scaling back their vacation plans this year as economic pressures mount. The findings come amid rising costs of living, inflation, and uncertainty about the future, prompting many to reconsider travel budgets.
Local tourism benefits from shift
Pierre Trowbridge, owner of St. John's Walking Tours in Newfoundland, said his business has seen a notable spike in 2026. “We're getting more locals and regional visitors who are choosing to explore closer to home rather than spending on expensive trips abroad,” Trowbridge explained. The trend appears to be a silver lining for domestic tourism operators.
Survey details and economic context
The survey, conducted by a leading market research firm, polled over 1,500 Canadian adults in June 2026. It found that 43% of respondents are reducing vacation spending, with 28% canceling trips entirely. Another 15% are opting for shorter or less expensive getaways. The primary reasons cited include higher fuel prices, increased accommodation costs, and general financial caution.
According to Statistics Canada, the country's inflation rate remains elevated at 4.2% as of May 2026, while consumer confidence indices have dipped. The Bank of Canada has held interest rates steady at 5.5%, but many households continue to struggle with debt servicing.
Impact on travel industry
The shift is reshaping Canada's travel sector. Airlines and hotels report softer demand for international routes, while regional tourism boards promote staycations. “We're seeing a real pivot to local experiences,” said a spokesperson for Destination Canada. “Canadians are discovering hidden gems in their own provinces.”
In St. John's, Trowbridge has added extra tour times to accommodate demand. “People want authentic, affordable experiences. Walking tours offer that—history, culture, and exercise for a reasonable price,” he said.
Broader economic sentiment
The survey also found that 62% of Canadians describe the current economy as “poor” or “very poor,” and 71% expect conditions to worsen over the next year. These sentiments align with recent GDP growth of just 0.8% in Q1 2026. The federal government has announced new cost-of-living measures, but many remain skeptical.
“We're tightening our belts everywhere,” said survey respondent Marie Leclerc of Montreal. “Vacations are a luxury we can't justify right now.”
