Canadians ditching trips south could threaten U.S. tourism sector

Fewer Canadians travelling to the U.S. could lead to thousands of job cuts and a slump in the travel sector, warns one organization.

The U.S. Travel Association is a national, non-profit organization that represents all components of the U.S. travel industry.

According to the organization, with 20.4 million visits in 2024, Canadians make up the majority of international visits to the U.S., generating $20.5 billion USD and supporting 140,000 jobs. The most popular states Canadians visit are Florida, California, Nevada, New York and Texas.

However, a potential U.S.-Canada trade war could change that.

"A 10 per cent reduction in Canadian travel could mean 2 million fewer visits, $2.1 billion in lost spending, and 14,000 job losses," they stated.

On February 3, Prime Minister Justin Trudeau announced that, after a phone call with U.S. President Donald Trump, the proposed 25 per cent 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 U.S.

Despite the fees, more Canadians are changing their travel plans, with many avoiding the U.S. 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 U.S."

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.