Political tensions between Canada and the United States, fueled by President Donald Trump’s tariffs, are reshaping travel trends. New data shows Canadians are avoiding cross-border trips and choosing to explore within the country, a shift being welcomed by the domestic tourism sector.
A recent Moneris report, supported by an Angus Reid survey, revealed that 26 percent of Canadians altered or cancelled their U.S. travel plans this summer. For the seventh consecutive month, the number of Canadians crossing the border by car or plane fell sharply. Instead, many travelers redirected their spending to Canadian hotels, restaurants, and attractions.
“Domestic tourism as a spending vehicle to drive the economy is enormous,” said Sean McCormick, Director of Business Development for Data Services at Moneris.
The survey found that 30 percent of Canadians opted to visit other provinces, while 44 percent chose to stay closer to home and travel within their own province. This spending shift provided a significant lift to local economies, which rely heavily on seasonal tourism.
At the same time, the U.S. tourism sector has recorded a downturn, with fewer Canadians traveling south not only for leisure, but also for conferences and school-related trips. Industry analysts suggest this trend will likely continue until trade and diplomatic tensions ease.
“Well done Canada for supporting who we are,” said McDonald, emphasizing the importance of strengthening local economies. “We want to really support our local economies and you really saw that this year and the numbers are there to support that.”
While domestic travel gained momentum, international destinations beyond the U.S. also saw a rise in Canadian visitors. Travel to Mexico, South America, and Europe increased, highlighting a broader diversification in Canadian travel preferences.
With ongoing uncertainty in Canada-U.S. relations, experts predict Canadian tourism will continue to thrive as more people choose to spend their vacations and dollars within the country.
