Toronto's tourism market is now in a phase of strategic rebalancing after years of strong recovery. The city has not only returned to visitor volumes approaching pre-pandemic levels but has also seen significant shifts in traveller behaviour and spending. This brief highlights the key trends shaping Toronto's visitor economy in 2025. From evolving source markets to the critical role of event-driven demand, this report explores the forces moving Toronto's tourism cycle from recovery to sustainable growth.
National Context: Canada's Rebound Underpins Toronto Growth
Canada's national tourism picture provides a positive backdrop for Toronto. In 2024, the country as a whole saw a substantial increase in international arrivals, with 19.9 million visitors — an 8.6% rise year-on-year. This growth trajectory, with a strong recovery pace, created a significant platform for gateway cities, especially Toronto, to attract larger inbound flows. The momentum from 2024, characterised by national-level growth and enhanced air connectivity, laid the foundation for Toronto's own tourism expansion in 2025.
Visitor Volumes in Toronto: Reaching Pre-Pandemic Scale
Toronto welcomed around 9 million visitors in 2024, with total visitor spending reaching $8.8 billion. These numbers, as reported by Destination Toronto, show a market that is just shy of its 2019 totals. A notable finding is the city's international visitation, which climbed to about 2.7 million international visitors in 2024. This represented a 7% year-on-year increase and was driven by a strong rebound in demand from key international markets. These figures indicate a meaningful shift in the city's visitor mix back towards international travellers, who, by their nature, tend to spend more per trip.
Accommodation Performance: Occupancy and Rate Dynamics
Toronto welcomed around 9 million visitors in 2024, with total visitor spending reaching $8.8 billion. These numbers, as reported by Destination Toronto, show a market that is just shy of its 2019 totals. International visitation climbed to about 2.7 million visitors in 2024, reflecting a meaningful rebound from key international markets. These figures indicate a shift in the city's visitor mix back towards international travellers, who, by their nature, tend to spend more per trip.
Accommodation Performance: Occupancy and Rate Dynamics
Hotel performance across Canada set new records for both Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) in 2024, and this growth has continued into 2025. Toronto's hotel market mirrors this trend. Occupancy is on the rise, and room rates are proving resilient, particularly during major events and conference seasons. This has sparked renewed interest from investors and operators in major hotel assets throughout the city. The performance of these properties is a key indicator of the health and profitability of Toronto's visitor economy.
Seasonality and Event-Driven Demand: Concentrated Peaks
The tourism recovery in Toronto reveals a pattern of stronger performance during peak periods, which run from spring through early fall, and also during major event windows. This dynamic means that while shoulder seasons still present an opportunity, demand is becoming more concentrated at these high-profile times. Major conventions, sports events, and film festivals continue to create significant spikes in hotel demand. High-end properties in well-connected locations have successfully captured a larger share of the high-spend, short-stay business and event-attendee segments. This trend has been particularly beneficial for premium brands and independent hotels, such as the Pan Pacific Toronto, which has been successful in marketing itself as a distinct destination within the city. For a property positioning itself as a luxury hotel in Toronto, being located near convention and cultural districts has become an important differentiator for attracting high-value travellers.
Source Markets: US, UK, and Long-Haul Europe Return
While domestic visitation has returned to near-full recovery, international markets — especially the United States, the United Kingdom, and Germany — have been central drivers of spending in 2024. These visitors are inclined to stay longer, and their spending patterns are more robust, which has helped the city's total tourism receipts outperform simple visitor counts. Growth from certain Latin American and Asian markets is visible, though uneven and influenced by airline connectivity and visa policies.
Mix Shift: Hotels vs. Short-Term Rentals and Spatial Differences
The accommodation landscape in Toronto is evolving into a two-track market. Hotels have regained market share in central business and convention districts, supported by strong ADR growth. In contrast, short-term rentals maintain a stronger foothold in leisure-oriented neighbourhoods and areas closer to the waterfront and islands. Monthly accommodation data highlights how demand and RevPAR can vary significantly between districts. This requires revenue managers and planners to be very strategic when setting seasonal pricing and channel strategies for different parts of the city.
Traveller Behaviour: Experiences, Length of Stay, and Spending
Travellers to Toronto show a distinct preference for curated experiences, including food tours, arts, and exploring different neighbourhoods. International visitors, in particular, are favouring longer stays. This change in behaviour is a major reason why per-visitor spending has improved even as total arrival numbers continue to catch up to 2019 levels. Operators who have been successful in bundling experiences, such as culinary or cultural tours, and providing flexible booking options have reported stronger ancillary revenue.
Forward Indicators for 2025: What to Watch
Looking ahead, several indicators are crucial to monitor through 2025. These include flight seat capacity into YYZ and surrounding airports, the schedule of major convention bookings which heavily influence urban hotel demand, and monthly occupancy trends for both hotels and short-term rentals. Cross-border policies that affect U.S. traveller volumes are also a key factor. Early reports for 2025 show continued growth in ADR and RevPAR on a national scale. If Toronto follows this trajectory, the city could set new nominal records for citywide RevPAR and total tourism receipts even as the market normalises from its post-pandemic recovery.
