Fewer Canadians travelling to the US could lead to thousands of job cuts and a slump in the travel sector, warns one organization.
The US Travel Association is a national, non-profit organization that represents all components of the US travel industry. According to the organization, with 20.4 million visits in 2024, Canadians make up the majority of international visits to the US, generating US$20.5 billion and supporting 140,000 jobs. The top five most popular states Canadians visit are Florida, Nevada, New York, and Texas.
However, a potential US-Canada trade war could change that.
“A 10% reduction in Canadian travel could mean 2 million fewer visits, $2.1 billion in lost spending, and 14,000 job losses,” they stated.
Rokas Tenys/Shutterstock
On February 3, Prime Minister Justin Trudeau announced that, after a phone call with US President Donald Trump, the proposed 25% tariffs would be paused for at least 30 days.
However, before this announcement, Trudeau urged Canadians to “choose Canada” during a February 1 press conference.
“Now is also the time to choose Canada. There are many ways for you to do your part,” said Trudeau. “It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites, and tourist destinations our great country has to offer.”
Canadians changing plans instead of travelling to the US
Despite the fees, more Canadians are changing their travel plans, with many avoiding the US altogether.
“They are understandably feeling very emotional right now. That trust is broken,” explained Amra Durakovic, head of Communications for Flight Centre Travel Group Canada.
For example, Durakovic stated that one couple who had planned a trip to Scottsdale, Arizona, to visit the Grand Canyon cancelled their $10,000 trip. Instead, they’re going to Portugal. Another couple celebrating a milestone anniversary had initially planned to embark on a cruise from Miami. They’ve now cancelled their $20,000 trip and will be going on a cruise in the Mediterranean.
“Canadians are rather conservative when they travel,” observed Durakovic. “Our top three destinations are Mexico, Canada, and the US.”
Jeff Whyte/Shutterstock
Long before Trudeau urged Canadians to travel within Canada, Durakovic said she had already started seeing the shift in November due to the weakened loonie. As a result, Canadians are stepping out of their comfort zones and looking at alternative destinations where the Canadian dollar is strong.
“Think about places like Portugal. I know it’s Euro there; however, once you’re there, things are very affordable,” she said. “Places where our dollar is strong, specifically, is Japan; the Canadian dollar holds up very well against the yen. Another place is Korea, with Squid Game [creating] this new interest in Korea. The Canadian dollar is strong against the won.”
Durakovic said that even popular weekend getaway destinations like Chicago, Boston, and New York are now being swapped for places on the East Coast, such as Montreal.
“I really want to show Canadians that there’s so much beauty here in our own backyard. And if we can support Canadians, let’s do that. And if we can support internationally, let’s do that as well,” she said.