Lynda Cross, the manager of Hotel Bedford in Goderich, Ontario, notes a diverse influx of guests, including visitors from Toronto and, for the first time, Australia. However, she has observed a significant decline in American tourists this year, particularly during the months of May and June.
The perceived economic patriotism among Canadians has led to a surge in domestic tourism as many opt for local destinations instead of traveling across the U.S. border. According to a report from the Conference Board of Canada, this trend might generate up to $8.8 billion in additional business for Canada’s tourism sector in 2025. Despite this optimistic projection, there is concern that the decline in American visitors and the possibility of Canadians choosing to stay home for financial reasons could impact the overall tourism landscape.
Statistics Canada reported an almost 11 percent decrease in the number of Americans who drove into Canada in April compared to the previous year. This marked the third consecutive month of declines, highlighting a deeper trend in cross-border tourism. The downturn in American visits has been attributed to various factors, including economic constraints, feelings of unwelcomeness, and concerns regarding border crossings on their return journey.
Border towns, which typically rely on frequent short visits from American tourists, are worried about the potential repercussions of this decline. Andrew Siegwart, head of the Tourism Industry Association of Ontario, expressed concerns that these communities will feel a more significant impact given their reliance on American foot traffic. Furthermore, duty-free shops have reported a staggering revenue drop of 60 to 80 percent over recent months due to reduced American patronage.
While Canadian tourists display a trend of exploring domestic destinations, international tourism has not picked up as expected. Visitor numbers from China remain at only 40 percent of 2019 levels due to ongoing travel restrictions. New visa requirements for Mexican visitors have made travel more challenging, and there are several unresolved issues affecting travel from India as well, as noted by Siegwart.
Despite these challenges, many Canadians are opting to stay closer to home. A survey by Ontario’s travel regulator revealed that over half of the respondents were inclined to make excursions within Canada, a sentiment consistent across different age demographics. The potential of matching or even exceeding last year’s tourism numbers remains, although underlying consumer anxiety over economic conditions looms large.
Concerning summer bookings, two out of three business surveyed reported holding steady or experiencing growth compared to the prior year. John Steele, who operates multiple hotels in Newfoundland and Labrador, indicated that visitor levels appear promising at most properties. He noted that improved air access, particularly with new flights from London and Paris to St. John's, enhances the potential for attracting international tourists.
On the other hand, Marsha Morrish from Okanagan Wine Country Tours in British Columbia reported a 20 percent increase in bookings from Europe and the UK, alongside a rise in visitors from Quebec. However, American tourists remain cautious; Morrish recounted a remark from a Colorado couple checking on Canadian sentiments regarding American visitors.
While there is the potential for a resurgence in American tourist numbers, experts like Siegwart remain skeptical about significant increases this year, particularly concerning corporate gatherings. He noted a decline in American conference bookings across various convention centers, largely due to concerns over personal safety and experiences at the border. Factors influencing American travelers include their immigration status and issues related to gender identity.
Despite apprehensions, certain segments of American tourists continue to visit Canada. Wendy Mooney, owner of Country Hideaway RV Campground in British Columbia, reported observing an increase in American visitors this year, indicating that some travelers are undeterred by the prevailing uncertainties.
