In light of recent developments, a potential uplift may be on the horizon for the domestic tourism industry of Canada. There seems to be a burgeoning trend of Canadians choosing to opt out of cross-border travel to the United States and instead vacationing within their home country. According to a report published by the Conference Board of Canada on May 29, this trend could equate to an economic windfall for Canada’s tourism sector, with an estimated value of up to $8.8 billion.
A travel intention survey conducted by the same think tank in April hinted at a decrease in travel plans to the U.S by Canadians. The survey indicated that the number of Canadians contemplating U.S. travel in the upcoming years has dipped to 27 per cent. Notably, this figure is significantly lower than data from the previous year’s survey, where over 50 per cent of respondents intended to visit the U.S.
Supplementing the survey’s findings, Statistics Canada’s data unveiled another intriguing factor: the percentage of Canadians by car re-entering the country from the United States in April dropped to 35.2 per cent year-over-year. This decrement marks the fourth continuous month of declines observed on a year-over-year basis, which suggests this is more than just an isolated trend.
It’s important to understand that this pattern is not coincidental but rather, stems from ongoing political and economic turbulence. The Conference Board report also anticipates that the continuation of the current tariff dispute could inadvertently lead to a depreciation of the Canadian dollar, likely deterring Canadians from U.S. travel plans.
For Canada’s economy, especially the domestic tourism sector, this scenario could turn into a golden opportunity. If Canadian citizens were to redirect just a fraction of their usual spending for an extended U.S. trip domestically—say, on a prolonged overnight excursion—the collective economic impact could be substantial. This could potentially inject billions of dollars into the country’s economy this year.
Travel habits within the country might also evolve as a consequence of this. It’s plausible that Canadians would spend more than their usual budgets for domestic trips. This increased expenditure could be realized through extended stays, venturing further afield or engaging in additional activities during their vacations.
While this change predicts a positive outlook for the industry, it should be noted that even under the most conservative interpretations, the adjustments in travel habits are expected to benefit the Canadian tourism industry this year. Nonetheless, worries related to an economic slowdown due to the ongoing tariff conflict could also trigger Canadians to curb their spending, resulting in a surge of cost-effective ‘staycations’.
For instance, a family in Ontario that usually spends thousands on a visit to a place like the Grand Canyon in the U.S. might choose to downsize their vacation spending. They could instead put some hundreds of dollars towards a week-long camping expedition within the beautiful expanse of Algonquin Park.
However, there are caveats to these positive spin-offs. If the trade dispute escalates leading to a severe economic decline in Canada, it could make travellers more reticent to spend. Subsequently, the projected potential boost for Canadian tourism may be diminished considerably.
Another noteworthy concern is that there has been a decline in the number of American tourists—a typically significant source of inbound travellers for Canada. This reduction could potentially be a knock-on effect of the current trade dispute. It’s crucial to mention that Canada has maintained a measured response to U.S. trade friction to avoid discouraging visitors from America.
The dialogues surrounding the trade war have been deliberately directed towards the political administration and their policies, with an intention to maintain a welcoming environment for American travellers. Despite the strife, the hope remains that American tourists will continue to feel at ease to travel to the North.
Still, the Tourism Industry Association of Canada has voiced concern over a ‘prolonged reduction’ in American travellers. In an open letter, the association shared that the drop has already started to adversely impact operators within the country. It’s also creating a ripple effect on the livelihoods of over two million Canadians employed in the sector.
To counteract this effect, the Association has recommended a surge in international marketing for Canada as a travel destination. Additionally, they also urged to improve the entrance procedures for international tourists to make the entry process more seamless and enticing.
The post Domestic Tourism Boom Anticipated in Canada Amid Lesser Cross-border Travels appeared first on Real News Now.
About Author
