The U.S. Travel Association is sounding the alarm as escalating trade tensions between the United States and Canada threaten to significantly impact the American hospitality industry. Retaliatory measures from Canada, spurred by U.S. tariffs, are prompting Canadians to reconsider their travel plans to the U.S., a move that could result in substantial financial losses and job insecurity within the American tourism sector.
Recent developments have seen Canadian Prime Minister Justin Trudeau publicly suggesting that Canadian citizens should explore domestic travel options instead of visiting the U.S. This statement, broadcast across Canada, directly responds to tariffs imposed by the U.S. on Canadian goods. Echoing this sentiment, British Columbia Premier David Eby further encouraged Canadians to carefully consider where they spend their money, highlighting the U.S.’s intent to inflict economic harm on Canada.
These calls for a shift in travel patterns are already manifesting in booking cancellations. Flight Centre, a major Canadian travel agency, reports a noticeable increase in cancellations of U.S. vacations, with some affected trips representing significant investments exceeding $10,000 CAD.
The U.S. Travel Association (USTA) projects that even a modest 10% drop in Canadian tourism could lead to a loss of 2 million visits. This reduction in traveler numbers translates to an estimated $2.1 billion decrease in tourism spending and potentially puts 140,000 jobs at risk within the U.S. hospitality and related industries. States that are typically popular with Canadian tourists, such as Florida, California, Nevada, New York, and Texas, are particularly vulnerable to these declines.
Canadians constitute the largest group of international visitors to the United States. Their impact is especially pronounced in states like Florida, where they represented 38% of all foreign tourists in 2023, according to Visit Florida data. Texas also heavily relies on Canadian tourism, with Canadians being the second-largest international market, contributing $403.3 million in travel expenditure in 2023.
The significant contribution of Canadian tourists to the U.S. economy is underscored by the $20.5 billion spent by 20.4 million Canadian visitors in the U.S. last year, according to the National Travel and Tourism Office. This figure highlights the critical role Canadian tourism plays in the overall health of the American travel and hospitality sectors.
The U.S. Travel Association emphasizes the importance of maintaining strong travel ties between the two nations, urging for resolutions that avoid long-term damage to the tourism economies of both countries. The current trade dispute and its impact on travel serve as a stark reminder of the interconnectedness of the U.S. and Canadian economies, particularly within the vital tourism sector. The association continues to monitor the situation closely, advocating for policies that support and encourage, rather than hinder, international travel.
