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Peggy’s Cove, N.S. – Image Credit Unsplash
- The Conference Board of Canada predicts a potential $8.8 billion boost to Canada’s domestic tourism due to decreased travel to the U.S. amid trade tensions.
- Political and economic conflicts, including a tariff dispute initiated by the U.S., have spurred a “Buy Canadian” movement, influencing travel decisions within Canada.
Craig Lord of The Canadian Press reports that in light of recent U.S. trade policies and the ensuing tariff disputes initiated in early March by President Donald Trump, Canada’s tourism sector may see a significant shift. A report from the Conference Board of Canada, released on May 29, 2025, suggests that the domestic tourism industry could benefit by as much as $8.8 billion due to a decrease in Canadians’ travel to the United States. This projection is based on a survey indicating that only 27% of Canadians are considering U.S. travel in the coming years, a sharp decline from over 50% in previous surveys.
The report highlights a notable decrease in Canadians traveling to the U.S. by car, with a 35.2% year-over-year drop recorded in April. This marks the fourth consecutive month of decline, a trend that Kiefer Van Mulligen, a senior economist at the Conference Board and author of the report, attributes to the current political and economic conflicts. This shift is further evidenced by an increase in Canadians planning trips to other international destinations, though many opt to redirect their travel plans domestically.
The weakening Canadian dollar, affected by the tariff dispute, is expected to discourage travel to the U.S. further and encourage domestic tourism. Van Mulligen suggests that redirecting even a portion of what they would typically spend on U.S. travel to domestic tourism could significantly bolster the Canadian economy. This could involve Canadians spending more on longer and farther domestic trips.
However, the report also cautions that an economic slowdown prompted by the trade dispute could lead Canadians to curb their spending, potentially opting for more affordable “staycations.” For instance, an Ontario family might choose a local camping trip over a more expensive U.S. vacation. This conservative spending could mitigate the overall positive impact on Canadian tourism.
Additionally, the report notes a decline in American visitors to Canada, which is traditionally the largest source of inbound travelers. The Tourism Industry Association of Canada has expressed concern over the prolonged reduction of U.S. visitors, highlighting the potential threats to the viability of tourism operators and the livelihoods of over two million Canadians employed in the sector.
In response to these challenges, the tourism industry has called for increased international marketing of Canada as a travel destination and streamlined entry processes for international visitors. Despite the tensions, Canada aims to maintain a welcoming stance towards American tourists, focusing criticism on U.S. administration policies rather than the American people.
