Canada’s escalating trade tensions with the United States may have an unexpected upside for the tourism industry. A new report from the Conference Board of Canada suggests the ongoing tariff disputes and political uncertainty could drive a surge in domestic travel, potentially boosting Canada’s tourism economy by as much as $8.8 billion this year.
According to the Board’s April travel intentions survey, just 27 per cent of Canadians are considering travel to the U.S. over the next few years—a sharp drop from over 50 per cent in November. The report attributes the decline to Canadians increasingly boycotting cross-border vacations amid growing frustration with U.S. policy, particularly under President Donald Trump.
Kiefer Van Mulligen, senior economist and author of the report, said the shifting sentiment offers a rare opportunity for Canada’s domestic travel sector to thrive. He noted that in addition to more Canadians opting for staycations or vacations within the country, Canada could also attract international tourists who are avoiding the U.S. due to geopolitical tensions and unpredictable leadership.
Van Mulligen added that economic uncertainty and fears of a slowdown may further encourage Canadians to reduce discretionary spending and travel closer to home. Even though border crossings by American tourists have declined in recent months, the Conference Board remains optimistic that homegrown travel demand will more than make up the difference.