Canadians Pull Back on U.S. Trips, Threatening to Widen Travel Deficit

Canadians Hold "Elbows Up" Protest Against U.S. Tariffs and Other Policies

Canadians Skip Trips to the U.S.

Canadians are skipping trips to the U.S. and visitors from other countries could soon follow, threatening to deepen the United States’ $50 billion travel deficit.

Experts Say They’re Pulling Back for a Variety of Reasons

Experts say they’re pulling back for a variety of reasons, ranging from an unfavorable currency exchange rate to the U.S. political climate given President Donald Trump’s trade policies and his public statements on annexing Canada, as well as high-profile detainments of people who already had visas to be in the U.S., long wait visa times, and other policies that have added to tensions with longtime close allies.

Canadian Prime Minister Urges Canadians to "Choose Canada"

In response to President Trump’s tariff plans at the time, former Canadian Prime Minister Justin Trudeau last month urged Canadians to "choose Canada" and suggested "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."

The Cross-Border Travel Trends and Trump Administration’s Policies are Worrying Some in the United States’ Travel Industry

The cross-border travel trends and Trump administration’s policies are worrying some in the United States’ travel industry, which draws in more than $1 trillion in direct spending a year.

The U.S. Travel Association Warns of a "Slowing U.S. Economy and Recent Safety Concerns"

The U.S. Travel Association said in a statement to CNBC that there is a "question of America’s welcomeness, a slowing U.S. economy, and recent safety concerns."

Billions of Dollars on the Line

There are billions of dollars on the line. People from the United States already travel abroad and spend more in other countries than the U.S. brings in from foreign travelers.

Travel and Tourism of Inbound Visitors are Counted as U.S. Exports

Travel and tourism of inbound visitors are counted as U.S. exports, and they accounted for about 8% of U.S. exports of goods and services, according to the Commerce Department.

Some Canadians Travel Elsewhere

Air Travel and Land Crossings Between the United States and Canada are Down

Both air travel and land crossings between the United States and Canada are down.

Hotel Demand in Some Areas Along the Canada-U.S. Border are Down

Hotel demand in some areas along the Canada-U.S. border are also down. As of March 15, they were off 8% in Bellingham, Washington, and 3.5% in the Niagara Falls area, according to hotel data firm STR.

Canadian Airlines are Cutting Some Routes and Flights to the U.S.

Canadian airlines are cutting some routes and flights to the U.S. Canadian airline Flair, for example, said it canceled its planned Toronto to Nashville, Tennessee, route.

The Shift Comes as Travel Executives Have Warned About Weaker-Than-Expected Bookings for Domestic U.S. Trips

The shift comes as travel executives have warned about weaker-than-expected bookings for domestic U.S. trips, meaning more local tourism might not be able to make up for the drop in trans-border travel.

Conclusion

The shift in cross-border travel trends and the Trump administration’s policies are a cause for concern for the United States’ travel industry.

FAQs

Q: What are the reasons for the decline in cross-border travel?
A: The reasons include an unfavorable currency exchange rate, the U.S. political climate, and high-profile detainments of people who already had visas to be in the U.S.

Q: What is the impact of the decline in cross-border travel on the U.S. economy?
A: The decline in cross-border travel could lead to a significant loss in revenue for the U.S. travel industry, potentially impacting the U.S. economy.

Q: What measures can be taken to address the decline in cross-border travel?
A: The U.S. government and the travel industry can work together to address the decline in cross-border travel by improving the travel experience, addressing concerns about safety and security, and promoting the U.S. as a tourist destination.