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Increased Tariffs May Negatively Impact US Tourism Revenues

Canadian Travel Boycott Threatens U.S. Tourism

Canadian Travel Boycott Threatens U.S. Tourism Amid Tariff Dispute

The U.S. travel industry is bracing for a potential crisis as Canadian travelers cancel trips to the United States in response to newly imposed tariffs on Canadian goods by the U.S. President. 

The U.S. Travel Association (USTA) warns that this boycott could severely impact the American tourism sector, which relies heavily on Canadian visitors, potentially leading to billions in lost revenue and significant job losses. 

Canadian Prime Minister Justin Trudeau has encouraged citizens to explore domestic travel options, further fueling the shift away from U.S. destinations. This call to action, combined with widespread discontent over the tariffs, has led to a surge in trip cancellations and rebookings to alternative destinations, as reported by Canadian travel agencies. 

“Now is the time to choose Canada…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.” – Justin Trudeau, Prime Minister, Canada

The online community reflects this sentiment, with many Canadians expressing their frustration and vowing to avoid spending money in the U.S. until the situation improves. States like Florida and Texas, which heavily depend on Canadian tourism, face the greatest risk. 

In 2023, Canadians made up 38% of all foreign tourists in Florida, and Canadian travelers spent $403.3 million in Texas. The USTA estimates that even a 10% drop in Canadian travel could result in $2.1 billion in lost revenue and jeopardize 140,000 jobs across the hospitality and related sectors.

While some travel experts suggest that the initial wave of cancellations may not represent a “mass boycott” and that Canadians’ love for travel will persist, the political climate could lead to a sustained shift towards alternative destinations. The U.S. travel industry is closely monitoring the situation, hoping for a resolution to the tariff dispute to mitigate potential long-term damage.