Most Canadian hot tub manufacturers make models that can be placed indoors or outdoors. It's really a matter of personal preference. However, when installing a hot tub indoors you should consider that proper ventilation is very important to prevent mildew. In Canada wood hot tubs are mostly installed outdoors as they are in harmony with the natural environment.
Operating a wooden hot tub in Canada is the same as any plastic hot tub and you may want to invest in an upgraded cover. Northern Lights Cedar Tubs offers a R14 and an R21 cover. The R21 cover is more suited to Canadian winters both for cold and snow load. Other options to help with the cold are an insulted floor option which can be purchased as an upgrade for about $150.
Cedar for hot tubs in Canada - Cedar is an ideal wood for manufacturing hot tubs in cold climates as cedar is arguably the best insulating wood in the world. We are fortunate in Canada to have an abundance of sustainably harvest clear Western red cedar!