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Toronto Luxury Tourism Soars as U.S. Travel Faces Global Decline

Luxury Travel and Tourism

Business Honor
05 May, 2025

New hotels, fine dining, and rising global interest boost Toronto’s tourism economy.

Toronto, the largest city in Canada, is experiencing a healthy upswing of high-end tourism. Renowned for its urban skyscraper complex and multicultural aspect, the city is attracting growing numbers of international tourists, at the same time as U.S. travel declines.

One of the biggest new luxury additions to Toronto is the Nobu Hotel, occupying a 45-story building that already has the city's first Nobu restaurant, which opened in August 2024. In June 2025, the 36-room and suite hotel will open to visitors. Reservations began earlier this year, generating buzz among upscale travelers.

The rise in Canadian tourism coincides with a decrease in international travel to the United States. Tourism Economics forecasts that travel to the U.S. will decrease by 15.2% in 2025 because of tighter immigration policies during the Trump administration. Meanwhile, Canada is emerging as a leading destination for tourists from Europe and Asia.

More than 9 million international travelers visited the city in 2024, marking a 7% growth over 2023, says Destination Toronto's recent report. Among them, 2.7 million were visitors from beyond Canada. The city's economy was significantly boosted by the visitors' more than $8.8 billion in spending.

Hotel companies such as Accor have also observed this trend. Their CFO, Martine Gerow, explained that bookings in the U.S. among EU tourists are lower, but Canadian bookings are increasing. Even Canadians are choosing to stay local instead of visiting the U.S.

Toronto's dining scene is also expanding. Some of the recent high-end additions are Mott 32, aKin, and Estiatorio Milos. In the meantime, the popular Harbour Sixty Steakhouse reopened in March 2025 following a two-year overhaul.

Toronto is rapidly emerging as a worldwide luxury travel destination, gastronomic destination, and international-class hospitality venue.