U.S. Tariffs Risk Billions in Canadian Travel Spending
New U.S. tariffs on Canada could lead to a sharp decline in Canadian tourism, jeopardizing billions in revenue and thousands of American jobs, warns the U.S. Travel Association. In 2024, Canada contributed 20.4 million visits to the U.S., generating $20.5 billion in spending and supporting 140,000 jobs. A 10% drop in travel could mean 2 million fewer visits, $2.1 billion in lost revenue, and 14,000 job losses.
Economic Impact of Reduced Canadian Tourism
Canadian travelers are the largest source of international visitors to the U.S., with top destinations including Florida, California, Nevada, New York, and Texas. Retail and hospitality sectors in these states face significant risks, as shopping remains the top leisure activity for Canadian tourists. A decline in travel could strain businesses reliant on cross-border visitors, from luxury outlets to family-friendly attractions.
Trudeau’s Push for Domestic Tourism
Canadian Prime Minister Justin Trudeau has urged citizens to prioritize domestic travel, stating: “Now is the time to choose Canada… Explore our national parks, historical sites, and tourist destinations.” This campaign aligns with growing concerns over U.S.-Canada trade tensions and aims to redirect spending to local economies.
States Most Vulnerable to Declines
- Florida: Relies on Canadian snowbirds during winter months.
- California & Nevada: Tourism hubs like Las Vegas and Los Angeles could see reduced hotel bookings.
- New York: Retail and cultural attractions may suffer losses.
- Texas: Shopping destinations like Houston’s Galleria face revenue risks.
U.S. Travel Association’s Warning
The U.S. Travel Association, representing the $1.3 trillion travel industry, emphasizes that tariffs could harm bilateral tourism. The group advocates for policies to sustain cross-border travel, which supports small businesses and major attractions alike.
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