Immigration Announcement
Canada’s Travel and Hospitality Industry Rebounds Stronger in 2025: A Workforce Shift Driving Resilience
Canada’s travel and hospitality industry is making an impressive comeback in 2025. After facing severe setbacks during the pandemic years, the sector is now experiencing growth, fueled by higher visitor demand, innovation, and a shift in its workforce strategy. A key contributor to this resurgence is the increasing participation of non-permanent residents, temporary foreign workers, and new immigrants who are playing vital roles in filling labor shortages.
This fresh momentum not only revives the economy but also reflects Canada’s inclusive immigration policies and adaptability in addressing pressing industry needs.
Growing Demand and Industry Recovery
According to recent data, the accommodation and food services sector employed over 1.1 million people in the first quarter of 2025. The industry has witnessed significant hiring efforts to match the booming tourist arrivals and domestic travel.
- Travel bookings have surged post-pandemic, particularly in provinces like British Columbia, Alberta, and Quebec.
- Canadian hotel occupancy rates have returned to pre-pandemic levels.
- Major cities like Toronto, Vancouver, and Montreal are seeing record footfall in events, conferences, and festivals.
These figures point to a sector that is no longer in survival mode but in full-blown expansion.
Workforce Shift: The Role of Immigrants and Non-Permanent Residents
A striking trend in 2025 is the transformation in the travel and hospitality workforce. According to Statistics Canada, the majority of new jobholders in this sector are non-permanent residents (NPRs), including:
- International students
- Temporary foreign workers (TFWs)
- Refugee claimants
- Open work permit holders
This marks the first time in Canadian history that NPRs outnumber Canadian-born workers in a major economic sector.
Why This Matters
- NPRs fill urgent vacancies, especially in roles deemed low-skilled or unattractive to domestic workers.
- Many bring multilingual abilities and international customer service experience.
- Their presence ensures the industry can meet rising service demands and seasonal fluctuations.
Supportive Policies Driving Inclusion
Canada’s immigration system is designed to be flexible, allowing employers in the travel and hospitality sector to hire foreign talent through:
- Temporary Foreign Worker Program (TFWP)
- International Mobility Program (IMP)
- Provincial Nominee Programs (PNPs) with employer-driven streams
Recent IRCC updates have also eased work permit processing for sectors facing acute labor shortages, including food services, housekeeping, and front desk operations. Moreover, some provinces now offer immigration pathways tailored for hospitality staff to apply for permanent residency, further strengthening retention.
Challenges and Solutions
While the integration of NPRs has benefited the industry, challenges remain:
- Language barriers
- Limited job mobility
- Housing affordability in tourist hotspots
To address these, employers and governments are working together to:
- Offer on-the-job language training
- Create temporary housing options
- Support career advancement through skills development
Canada’s Travel and Hospitality Industry: A Bright Outlook
The outlook for Canada’s travel and hospitality industry in 2025 and beyond is overwhelmingly positive. The sector is evolving into a more diverse, dynamic, and resilient part of the economy.
By embracing non-permanent residents and new immigrants as part of its core workforce, the industry is not only addressing labor shortages but also enriching the Canadian service landscape with global perspectives and energy.
As Canada continues to prioritize smart immigration policies and inclusive labor practices, its travel and hospitality sector is set to remain a global leader in both service excellence and social impact.
Key Takeaways
- Canada’s travel and hospitality industry employed over 1.1 million workers in early 2025.
- Non-permanent residents now make up the majority of new hires in the sector.
- Flexible immigration pathways support the industry’s growth.
- Workforce diversity is strengthening service delivery and business sustainability.
Canada’s Travel and Hospitality Industry Leading Through Inclusion
In 2025, Canada’s travel and hospitality industry is a clear example of how immigration and labor policies can power a resilient economic recovery. As new arrivals help breathe fresh life into hotels, restaurants, and tourism services, they also embody Canada’s core values of diversity, openness, and opportunity. The path forward is not just about recovery — it’s about transformation through inclusion.
