Canadian Tourists To The U.S. Down Nearly 40% In May, New Data Says

Key Concepts:

• Canadian boycott of US travel
• Decline in Canadian road trips and air travel to the US
• Impact on US tourism revenue
• Shift towards domestic travel among Canadians
• Forecasted decline in US international arrivals and visitor spending

Decline in Canadian Travel to the US:

• Intensified Boycott: Canadian boycott of travel to the US intensified in May, leading to significant economic losses for American tourism.
• Road Trip Decline: The number of Canadians taking road trips into the US dropped by 38% in May compared to May 2024, according to Statistics Canada. This is significant as road trips represent the majority of Canadian visits to the US.
• Air Travel Decline: There was a 24% decline in air travelers from Canada year-over-year in May.
• Consecutive Monthly Declines: May marked the fifth consecutive month of increasingly steep declines in inbound Canadian travel, following double-digit year-over-year drops in car and air travel in April and March.

Economic Impact on US Tourism:

• Canadian Contribution: Canadian tourists constitute about 25% of US foreign travelers, as reported by the US National Travel and Tourism Office.
• Spending in 2023: They spent $20.5 billion in the US last year.
• Forecasted Losses: The US is projected to experience a 9% drop in US international arrivals for 2025 and a decrease of $8.5 billion in international visitor spending relative to last year, according to Tourism Economics.
• Wider Decline: The World Travel and Tourism Council predicts an even larger decline, forecasting a loss of $12.5 billion in international visitor spending in 2025.

Shift Towards Domestic Travel:

• Leisure Trip Plans: A Ledger marketing poll indicates that 55% of Canadians have planned summer leisure trips, up from 47% in 2024.
• US Travel Decline: US travel plans have dropped to 10% from 23% last year.
• Domestic Travel Surge: Domestic travel intentions have surged to 77%, up from 69% in 2024.
• Provincial Travel: Compared to before President Trump's tariffs were introduced, more Canadians are likely to travel within their home province or to another Canadian province.

US Travel to Canada:

• Decline in May: Fewer Americans traveled to Canada in May, with car travel down 8% and air travel down 0.3%, according to Statistics Canada data.

Synthesis/Conclusion:

The Canadian boycott of travel to the US is intensifying, resulting in significant economic losses for the American tourism industry. This is driven by a shift towards domestic travel among Canadians, with a notable increase in leisure trips planned within Canada. Forecasts indicate a substantial decline in US international arrivals and visitor spending in 2025, highlighting the potential long-term impact of this trend. While US travel to Canada also saw a slight decline, the primary concern is the substantial drop in Canadian tourism revenue for the US.