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The National Observer: Real Estate: Tariffs, political tensions throw tourism economy into question

  • Canadian tourism to the United States, which generated US$20.5 billion in revenue and supported 140,000 jobs last year with 20.4 million visits, is expected to drastically decline this year.
  • This decline is attributed to a combination of factors, including a drop in the Canadian dollar's value and the policies of the 'America First' president, particularly threats of annexation and tariffs against Canada.
  • A recent Abacus Data survey revealed that 56 percent of Canadians have altered or cancelled US travel plans, and Flight Centre Canada reported a 40 percent drop in February bookings to American destinations compared to the previous year, along with a 20 percent cancellation rate of pre-existing reservations.
  • Cote stated, "We don't want to support the United States. It's a matter of principle," while company director Samy Hammadache declared, "We're boycotting them in light of the current situation," emphasizing the significant impact the loss of tourism will have on the US.
  • Agencies are observing a shift in Canadian bookings towards destinations like Europe, the Caribbean, Central America, and within Canada itself, as exemplified by Flair Airlines increasing flights to Mexico, Jamaica, and the Dominican Republic in response to decreased demand for US destinations, while former prime minister Justin Trudeau encouraged Canadians to 'Choose Canada' for their vacations.
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El Financiero broke the news in Mexico on Tuesday, March 25, 2025.
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