The World Economic Forum says Canada ranks eighth on its Travel and Tourism Competitiveness Index, up one spot from last year.
The report says tourists are drawn to Canada's natural resources, cultural diversity, strong air travel infrastructure and world heritage sites.
But the report also says Canada has lost some ground in terms of maintaining competitive prices and enforcing environmental protection policies.
The top five rankings all went to European countries, with Switzerland hanging on to top spot for the fifth year in a row.
Haiti came in last in the ranking of 140 countries.
Note to readers: This is a corrected story. An earlier version said Switzerland topped the list for the seventh year in a row.
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