- Statistics Canada reports that travel costs spiked in June, particularly in Toronto and Vancouver, the host cities for the World Cup.
- The cost of traveller accommodation in June rose about 20 per cent year-over-year in Ontario and British Columbia.
- Airfares jumped 9.6 per cent last month from a year earlier, driven by increased demand and higher jet fuel costs.
- Hotel prices soared amid World Cup demand, with accommodation costs rising 10 per cent year-over-year in June.
- Despite the increased travel costs, data show that the economic benefits of hosting the World Cup were muted.
- Waterloo Region bars experienced a boost in transaction volume, but hotel sales did not meet expectations due to cancellations.
- Governments pooled more than $1 billion to host 13 matches in Toronto and Vancouver, with expectations of job creation and increased tourism.
- Economists estimated that consumer spending and tourism would only add a combined 0.1 percentage points to Canada’s quarterly annualized GDP.
- Experts warned that any domestic spending should not be measured as a net economic benefit, as it likely displaced other tourism.
Statistics Canada revealed that travel costs surged in Toronto and Vancouver during the World Cup, with airfares rising 9.6% and hotel prices increasing by 20% year-over-year. The agency noted that accommodation costs rose 10% overall, reflecting a significant demand spike during the tournament.134
The increase in travel expenses was attributed to a combination of factors, including a 32.5% rise in air arrivals from overseas countries with teams participating in the tournament. However, the total number of non-residents entering Canada only increased by 5%, remaining 1.6% lower than in June 2024. Shelly Kaushik, a senior economist at BMO Capital Markets, stated, “It looks like there’s maybe some modest boost in spending, especially around Toronto and Vancouver, but there’s no major big economic impact from the tournament.”
Despite the surge in travel costs, experts caution that the economic benefits may not be as substantial as anticipated. Economists warned that increased domestic spending should not be viewed as a net economic gain, as it likely displaced other tourism activities. “If someone’s coming from somewhere else in the country to Toronto and Vancouver, that would help those economies. But, on net, for Canada, it’s likely going to be a wash,” Kaushik added.89
The World Cup's impact on local businesses was notable, with bars and breweries experiencing a 16% lift in transaction volume during the tournament. However, the hotel sector struggled to meet previous year performance numbers due to cancellations and congestion concerns, as noted by Tony Elenis, president & CEO of the Ontario Restaurant Hotel & Motel Association.
“Rental car prices rose nearly seven per cent across the country compared to June 2025, reversing a decline of similar magnitude in May that points to a World Cup-driven surge. Economists at BMO estimated the tournament added only 0.1 percentage points to Canada's quarterly annualized GDP, far below the sustained boost policymakers had hoped for.”
The Globe and Mail
