Canadians Rethinking U.S. Travel Due to Political and Economic Factors
The relationship between Canada and the United States has always been a cornerstone of cultural and economic ties, with millions of Canadians crossing the border each year for leisure, business, and shopping. However, recent developments have led to a noticeable shift in travel preferences among Canadians. The combination of U.S. President Donald Trump’s tariff threats, a weakened Canadian dollar, and political tensions has prompted many Canadians to reconsider the U.S. as a travel destination. According to data from Flight Centre Canada, interest in U.S. travel began declining in November, with a stark 40% year-over-year drop in leisure travel bookings by February. This trend has been further amplified by Prime Minister Justin Trudeau’s subtle encouragement for Canadians to rethink their travel plans.
A Broader Trend: Canadians Seek Alternatives to U.S. Travel
The decline in U.S.-bound travel is not isolated to air travel. Travel Best Bets, a B.C.-based travel agency, has also reported a similar trend, with many Canadians expressing dissatisfaction with the current U.S. administration. Claire Newell, president of Travel Best Bets, highlights that Canadians are choosing to spend their money elsewhere, driven by a sense of national pride and frustration. “Canadians are really proud, and they’re angry. They have a lot of dollars to spend, and they don’t want to be spending them in the U.S. right now,” Newell explained. This sentiment is reflected in the data, with a 30% drop in southbound travel at Surrey’s Peace Arch border crossing in February compared to the previous year.
Land Border Crossings and the Impact of Surtaxes
The decline in U.S.-bound travel is not limited to air travel. Recent data from Cascade Gateway, which tracks border wait times, revealed a significant drop in land border crossings. In February, southbound travel at the Peace Arch border crossing fell by about 30% year over year. This trend predates the federal government’s new surtax on items brought back into Canada from the U.S., suggesting that Canadians are already reassessing their cross-border shopping and travel habits. The surtax, however, may further deterrent travelers from visiting the U.S. for shopping trips, as it increases the cost of bringing goods back into Canada.
Canadians Explore New International Destinations
While some Canadians are opting to stay within Canada, others are venturing further afield to destinations beyond the U.S. Travel agencies have noted a surge in interest in countries like Vietnam, Mexico, Portugal, and Eastern European nations such as Poland and the Czech Republic. These destinations offer a combination of cultural richness, affordability, and a favorable exchange rate for the Canadian dollar. Newell pointed out that the common thread among these locations is that they are not the U.S., and the Canadian dollar stretches much further in these countries. This shift highlights Canadians’ desire for unique experiences and value for money in their travel choices.
Domestic Travel Sees a Surge in Popularity
In addition to exploring international alternatives, Canadians are increasingly turning to domestic travel. Flight Centre Canada has reported a significant uptick in interest in “fly-and-drive” vacations, particularly to Canada’s East Coast. Car rentals and bus tours for the summer are already filling up, indicating a strong preference for exploring home soil. This trend not only supports Canada’s tourism industry but also reflects a growing sense of national pride and a desire to experience the country’s diverse landscapes and cultural offerings.
The Economic Impact on the U.S. Tourism Industry
The decline in Canadian travel to the U.S. could have significant economic implications for the U.S. tourism industry. According to the U.S. Travel Association, Canadians made 20.4 million visits to the U.S. in 2024, spending a staggering US$20.5 billion. A 10% drop in Canadian travel would result in a loss of US$2.1 billion and 14,000 jobs. This highlights the importance of Canadian travelers to the U.S. economy and underscores the potential economic consequences of ongoing political and economic tensions.
In summary, the combination of political rhetoric, economic factors, and national pride has led Canadians to rethink their travel plans. While some are choosing to explore new international destinations, others are opting for domestic travel, contributing to a noticeable shift in the tourism landscape. As these trends continue to evolve, they could have lasting implications for both the U.S. and Canadian economies.
