Domestic Tourism: A Silver Lining to Tariffs?
As Canada prepares for another busy travel season, a shift in consumer habits due to looming tariffs is creating significant new opportunities for the country’s foodservice industry. With international travel still facing economic, logistical, and political hurdles, Canadians are increasingly choosing to explore destinations within their own borders. This surge in domestic tourism is more than just a temporary trend — it represents a powerful, long-term growth opportunity for restaurants across the country.
A Changing Economy
Restaurants Canada, the national association representing the foodservice sector, has been vocal about the need to reimagine how the industry adapts to a changing economy. After weathering years of pandemic disruptions, supply chain instability, and global trade tensions, the industry is now eyeing domestic tourism as a key pillar of recovery and growth.
Canadian consumers are ready to travel again, but many are opting for road trips, regional getaways, and visits to lesser-known parts of the country rather than international vacations. This inward focus is being driven by several factors: economic caution due to inflation and global uncertainty, growing appreciation for local culture and cuisine, and government efforts to promote travel within Canada. With the summer months approaching, the timing couldn’t be better for restaurants to take advantage of this renewed interest in homegrown exploration.
Government Efforts to Foster Tourism
To support this movement, various government initiatives are already in the works. New investments in interprovincial infrastructure — like upgraded highways, airport expansions, and modernized rail systems — will make it easier and more appealing for Canadians to travel across provinces. At the same time, proposals to reduce red tape on interprovincial trade could help local restaurants gain easier access to regional ingredients and specialty products, further boosting the quality and uniqueness of their offerings.
A proposed national travel incentive, dubbed the Canada Strong Pass, is also on the table. If implemented, it would provide financial encouragement for domestic travel, much like tourism vouchers seen in other countries. For the foodservice industry, this could translate into higher volumes of customers, especially in areas that traditionally rely on seasonal traffic.
Surge in Domestic Travel
Recent data underscores the robust growth of domestic tourism in Canada. In the third quarter of 2024, domestic tourism revenue reached $30.3 billion, surpassing pre-pandemic levels by 12% and accounting for approximately 75% of total tourism revenue during that period. This surge is attributed to various factors, including economic uncertainties abroad and a renewed interest in local experiences.
Moreover, geopolitical tensions and tariff disputes have led to a noticeable decline in Canadians traveling to the United States. Statistics Canada reported a 23% drop in Canadian drivers heading to the U.S. in February 2025 compared to the previous year.
Opportunities for Restaurants
This uptick in domestic tourism offers restaurants a valuable opportunity to attract and retain local travelers. By emphasizing authentic Canadian culinary experiences and regional specialties, establishments can cater to tourists seeking genuine and memorable dining moments.
Events like the Dine Out Vancouver Festival, which attracts over 100,000 participants annually, showcase the potential of culinary tourism in drawing both locals and visitors. Similarly, La Poutine Week, celebrated nationwide, engages over 350,000 customers, highlighting the appeal of regionally inspired dishes.
Strategies to Attract Domestic Tourists
To capitalize on the domestic tourism boom, restaurants can implement several strategies:
- Highlight Local Ingredients: Emphasizing locally sourced produce and regional dishes can appeal to tourists seeking authentic Canadian flavors.
- Collaborate with Local Businesses: Partnering with nearby hotels, tour operators, and visitor bureaus can enhance visibility and attract a broader customer base.
- Enhance Online Presence: Maintaining an updated website and active social media profiles can engage potential customers and showcase unique offerings.
- Participate in Culinary Events: Joining food festivals and local events can increase exposure and attract food enthusiasts.
- Offer Unique Experiences: Hosting cooking classes, farm-to-table dinners, or cultural nights can provide memorable experiences that resonate with domestic tourists.
Indigenous Tourism and Culinary Inclusion
As interest in meaningful and educational travel grows, Indigenous tourism is also emerging as a key part of Canada’s domestic tourism landscape. Restaurants have an opportunity to collaborate with Indigenous communities to showcase traditional ingredients, preparation methods, and storytelling through food.
Some restaurants are partnering with Indigenous chefs or culinary entrepreneurs to develop co-branded menus, host pop-up dinners, or offer educational tastings. Others are integrating ingredients such as bannock, wild rice, bison, and local berries as a part of seasonal specials or storytelling menus.
Initiatives such as Indigenous Tourism Alberta or Indigenous Culinary of Associated Nations (ICAN) can connect restaurants to networks and resources.
Challenges to Consider: Labor and Capacity Constraints
While domestic tourism is a boon, it comes with challenges that restaurant operators must proactively manage. The sudden increase in demand during peak seasons can strain already limited resources.
Labor Shortages
Labor shortages, especially in remote or seasonal communities, can lead to slower service and staff burnout. Investing in staff cross-training or offering incentives for seasonal workers can help.
Limited Seating Capacity
A lack of seating in small towns or tourist hotspots can result in long wait times or lost business. Options like reservation-only dining, staggered seating, or outdoor patios can alleviate congestion.
Higher Food Costs
A rise in menu prices due to inflation or interprovincial tariffs on ingredients may affect margins. Restaurants can respond by simplifying menus, using more local ingredients, and creatively managing portion sizes.
The Role of Technology in Capturing Tourist Dollars
Restaurants that invest in smart technology are better equipped to attract and serve domestic tourists. Today’s travelers are digitally savvy and expect convenience, speed, and access to information when choosing where to eat.
- Mobile-friendly websites with clear menus, pricing, hours, and reservation options make it easy for tourists to plan their dining experiences in advance.
- Contactless payments and mobile ordering streamline the dining experience, especially for busy families or tour groups.
- Google Maps and tourism app integration can help restaurants appear in “near me” searches by hungry travelers unfamiliar with the area.
- Multilingual digital menus via QR codes or tablets are a small but impactful addition in areas with diverse tourist demographics.
- Location-based social media ads can target tourists within a specific radius, offering discounts or meal deals to bring them through the door.
By leveraging these tools, restaurants can increase foot traffic and offer a modern dining experience that aligns with traveler expectations.
Conclusion
The resurgence of domestic tourism presents a powerful growth avenue for Canadian restaurants navigating an uncertain economic landscape. As more Canadians choose to explore local destinations, restaurants have a prime opportunity to position themselves at the heart of these journeys. By embracing regional flavors, enhancing their digital presence, and aligning with tourism trends and events, foodservice operators can turn this shift into a lasting advantage. With the right strategies, domestic tourism won’t just be a seasonal boost — it can become a foundational pillar for long-term resilience and revenue.
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