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CTV News
03-06-2025
- Business
- CTV News
Canada's domestic tourism industry could net billions due to U.S. trade war: report
Hundreds of people walk near the lighthouse in Peggy's Cove, N.S., Tuesday, July 4, 2023. THE CANADIAN PRESS/Darren Calabrese A new report argues that Canada's trade war with the United States might come with a silver lining for the domestic tourism industry. The Conference Board of Canada says its April travel intentions survey suggests roughly 27 per cent of Canadian respondents are considering a trip to the U.S. in the next few years, down from more than 50 per cent in the same survey last November. The report estimates that Canadians boycotting the U.S. for cross-border vacations could net the country's tourism sector up to $8.8 billion in extra business this year as travellers stay closer to home. It's predicting that windfall despite signs in the past few months of a drop in border crossings by American tourists — typically Canada's largest source of in-bound travellers. Kiefer Van Mulligen, senior economist at the Conference Board of Canada and the report's author, says Canada could also pick up some 'slack' from overseas tourists alarmed by U.S. President Donald Trump's efforts to upend global trade and annex nations like Greenland. Van Mulligen says fears of an economic slowdown tied to the tariff dispute could also encourage Canadians to rein in spending and opt for more affordable 'staycations.' This report by The Canadian Press was first published June 3, 2025. Craig Lord, The Canadian Press
Globe and Mail
19-05-2025
- Business
- Globe and Mail
Tourism operators anticipate a strong summer as more Canadians avoid U.S. travel
Canadian tourism businesses and associations are expecting a busy summer as more people opt to travel within the country rather than head south of the border. Although it is too early for comprehensive data for summer bookings, the industry buzz is positive with travel reservations across Canada appearing equal to or higher than last year. 'There's no question that Canadians are choosing not to travel to United States. Just like they're choosing not to buy American products,' said Andrea Mandel-Campbell, founder of Karibu Adventures, an Edmonton-based tour operator that organizes tours across Canada and abroad. Ms. Mandel-Campbell said conditions are similar to those during the COVID-19 pandemic, when Canadians had to stay home and had limited travel options. 'So we are seeing Canadians rethink, 'Okay, this is an opportunity to go to the places in Canada that I've always wanted to go to or I am curious about,'' she said. The current tensions between Canada and the U.S., amid President Donald Trump's trade war and 51st-state rhetoric, are fuelling the demand for more domestic travel. Canadians are also facing a weaker dollar, rising travel insurance costs and unpredictable U.S. border policies. Darren Reeder, president and chief executive officer of Tourism Industry Association of Alberta, said these factors 'are making domestic travel more appealing.' 'Travel Alberta has reported strong early demand signals, particularly in the mountain parks and resort regions,' he said in an e-mail. Key indicators such as hotel bookings, campsite reservations and attraction ticket sales are tracking ahead of 2024 in many areas of the province, he added. Andrew Siegwart, president and CEO of Tourism Industry Association of Ontario, echoed this sentiment, saying around 60 per cent of Ontario tour operators surveyed by TIAO reported that bookings look the same or higher than last year. However, Mr. Siegwart said some Ontarians are still being cautious about pre-bookings, opting to wait until closer to their travel dates because of uncertainty about the unstable economic and political situation. 'When things are uncertain, you wait to spend until you're ready,' he said. 'I think that that tighter booking window will likely remain until such time as things get more stable.' Operators in the cottage region of Muskoka north of Toronto are seeing an increase of between 10 and 15 per cent in bookings for the summer compared with last year, said Val Hamilton, executive director at Muskoka Tourism, adding that website visits from U.S. residents interested in planning trips are three times higher than last year. A survey conducted by Context Research Group in March showed 87 per cent of Ontarians reported they are likely to take a trip within their province, and only 27 per cent are likely to travel to their southern neighbour. The survey found 84 per cent believe other provinces or territories are welcoming to Ontario travellers, while 29 per cent believe U.S. residents are welcoming. The unfavourable exchange rate and a general anti-Canadian sentiment were cited as the two biggest discouraging factors for avoiding U.S. travel by 58 per cent and 53 per cent of Ontarians respectively, according to the survey. Canadians' return trips from the U.S. by car have already been falling this year. Statistics Canada reported a 35.2-per-cent drop in Canadian residents returning by car in April compared with a year earlier, marking the fourth consecutive month of declines. Airlines have also seen a drop in U.S.-bound flights, while domestic summer bookings are showing modest growth. Data from Cirium, an aviation analytics company, indicate a 3-per-cent increase in domestic air travel bookings for the months of June, July and August compared with last year, while U.S.-bound bookings for the same period are down around 22 per cent. Summer bookings from Montreal to Miami International Airport and from Vancouver to New York's LaGuardia Airport are both down 53 per cent, while bookings from Montreal to New York's John F. Kennedy International Airport are down 79 per cent, Cirium said. Within Canada, routes from Montreal to Calgary and Toronto registered the highest increase for summer bookings at 16 per cent, followed by Calgary to Montreal at 13 per cent. Canada's two largest airlines are trying to adapt to the winds of change. Air Canada said in March it would cut flights to the U.S. by 10 per cent for the next six months. Michael Rousseau, president and CEO of Air Canada, told analysts during a conference call on May 9 that the company is seeing higher booking demand for domestic Canadian destinations, as well as routes to Europe, Japan, Thailand and Australia, while bookings have declined 'in the low teens on average over the next six months' for the U.S. market. WestJet Airlines Ltd. announced last week it is suspending nine routes due to reduced demand between Canada-U.S. destinations from May through October. Routes affected include Vancouver-Austin, Winnipeg-Los Angeles and Edmonton-Chicago. In an e-mail to The Globe and Mail, WestJet reported a 'slightly downward shift' in cross-border bookings while observing a rise in demand for local destinations as well as for Mexico, the Caribbean and Europe. The airline has expanded both national and international flight routes. For Ms. Mandel-Campbell, travelling across Canada is a way for people to make plans without waiting to see how things turn out in the trade war. 'There's this feeling like we're not going to wait and potentially lose an opportunity. We want to live, have these experiences and travel while we can.'
