The impact of the global trade war that United States President Donald Trump has wrought is already starting to be felt, especially by the travel industry.
Data from U.S. Customs and Border Protection states that nearly 500,000 fewer travellers were crossing the U.S/Canada land border in February compared to last year. Only 2.2 million vehicle crosses took place in February the lowest since April of 2022, when Canada still had many COVID-19 restrictions in place.
James Teeple, a travel agent with Teeple Travels, says he is already seeing the trend of Canadians thinking about spending their money elsewhere.
“There is a noticeable trend of Canadians exploring destinations beyond the U.S.,” Teeple said. “Many travellers are now seeking unique experiences in Europe, Asia, and South America. This shift is partly driven by a desire for cultural immersion and the appeal of destinations offering better value for money.”
The Flight Centre Travel Group Canada (FCTGC) says that February flight bookings to the U.S. are down 40 percent from the same period last year. Also, FCTGC says they have also seen a 20 percent cancellation rate on pre-existing trips from Canada to the U.S., with travellers rebooking travel to other locations.
Teeple says travellers are looking at more destinations, all-inclusive, and even taking to the seas for their vacations.
“Canadian travellers are increasingly drawn to destinations such as Portugal, Iceland, and Colombia for their enticing blend of affordability and distinctive experiences,” Teeple said. “All-inclusive Caribbean resorts also remain popular among vacationers seeking relaxation and convenience. Furthermore, cruising continues to be a favoured option, with many exploring the charm of European waterways or the tropical allure of the Caribbean seas.”
Despite the tense political climate between the historically friendly neighbours, both the United States and Canada remain at the lowest level for travel advisories—which is to take normal precautions to keep yourself safe if visiting.
“I encourage any Canadian planning to travel to the U.S. to proceed as they typically would. While there may be some tensions between our governments, it seems that the American people continue to show warmth and goodwill toward us,” Teeple said. “As with any trip, it’s essential to stay aware of your surroundings, be conscious of the current political environment, and focus on enjoying your journey. Above all, showing kindness and maintaining a friendly spirit toward our American neighbours is always important.”
Closer to home, the local accommodation industry has not felt the impacts of the trade war yet, which is a positive thing for Amanda Hatton, who owns Avery House B&B and is one of the organizers with the Stratford Innkeepers Collective.
“There is understandably so much speculation and anxiety about events on the world stage, and most of us have little influence or control over the direction things take,” Hatton said. “From an emotional perspective, my husband and I are shocked, saddened, and angered by it all. But from a business perspective, we have not seen a significant impact, and we dearly hope that it stays that way.”
The Canadian Department of Industry reported that over 120,000 businesses were forced to close during the pandemic. Hatton says there were a couple of rough years, but the last two saw things return more to normal.
“All of us – not just accommodations, but restaurants, retail, and arts organizations – were seriously hurt by the events of 2020. Recovery was slow in 2021 and even 2022, as people were understandably hesitant to travel,” Hatton said. “Things were getting “closer to normal” in 2023 and 2024, but a lot of damage was done. Some lovely restaurants were forced to close, some accommodators decided to call it quits, arts organizations are struggling, racking up deficits. Everyone is in a different place, but perhaps “fragile, uncertain, but trying to maintain optimism” would be good words to describe how some of us feel.”
When it comes to local tourism, Destination Stratford is working hard to deal with the continuous, and seemingly daily challenges being thrown at Canadians from our American counterparts. Executive Director Zac Gribble says while times are hard right now, it seems like there is a Canada-strong mentality taking place.
“Currently there's such a strong 'Stay In Canada' sentiment within our country, and that I think bodes well for Stratford's tourism sector given that we are only a three-hour drive radius of over 14 million people,” Gribble said. “I think that goes well in terms of our visitations, our indicators are showing that that continues to be healthy, and there are actually people assembling in the U.S. that are specifically trying to support Canada and come to Canada. There's also a major dollar exchange value proposition for us.”
Indicators from Destination Stratford as well as the Stratford Innkeepers Collective is that the major tourism draw comes during the Stratford Festival season. Gribble says roughly a third of visitors that come to Stratford, especially as an overnight destination, come from the U.S., and Hatton says that is especially true for the accommodation industry.
“Travellers from the U.S. make up an important part of the visitors coming to Stratford,” Hatton said. “I don’t want to speak for everyone, but for our business, we typically see about 30% of our guests coming from the U.S.”
A hot-button topic of conversation — for the first time since the pandemic — is staycations, which Gribble thinks could put Stratford in a unique position.
“I think that we are already seeing anecdotal evidence of that with such a strong stay-in-Canada sentiment,” Gribble said. “This bodes well for Stratford both in terms of the immediate region and also further afield. So yes, we predict that we will see a lot of people from across Canada. Staying in Canada, travelling in Canada rather than going to the U.S. or other destinations in solidarity and support of our current situation with this trade war. I think Stratford has a compelling reason, culturally and is one of the major destinations for culture in Ontario.”
From a travel standpoint, the opinion is shared by Teeple.
“Staycations continue to be a strong trend, with many Canadians opting for domestic travel to explore the beauty of their own country,” he said. “This is fueled by affordability and a growing appreciation for local attractions.”
Currently, the U.S. have put tariffs of 25 percent on Canadian goods, 10 percent on energy exports from Canada imported into the U.S. and 25 percent tariffs on Canadian steel and aluminum.
Earlier this week, CTV News reported that Ontario Premier Doug Ford had met with U.S. trade representatives who indicated that the U.S. is planning to slap global tariffs on trading partners on April 2, which means more tariffs could be coming to Canadians.
For Canadians looking to travel but are apprehensive about travelling to the U.S. Teeple says there are five destinations that are very popular with travellers.
“Canada offers a wealth of stunning destinations,” Teeple said. “Top picks include Banff National Park for its breathtaking landscapes, Quebec City for its European charm, Niagara Falls for its iconic natural beauty, Whistler for outdoor adventures, and Prince Edward Island for its serene beaches and seafood.”