Decline in American Visitors to Canada Sparks Concerns for Tourism Sector

Indeed, the Canadian tourism industry is in crisis. In April, the total number of Americans driving in dropped almost 11 percent from the same month last year. Financial constraints, fears of encountering a hostile reception, and concerns about the border-crossing experience all play a role in this drop. Both of these factors combined to create…

Lucas Nguyen Avatar

By

Decline in American Visitors to Canada Sparks Concerns for Tourism Sector

Indeed, the Canadian tourism industry is in crisis. In April, the total number of Americans driving in dropped almost 11 percent from the same month last year. Financial constraints, fears of encountering a hostile reception, and concerns about the border-crossing experience all play a role in this drop. Both of these factors combined to create major barriers. Although there are many Americans who are not discouraged by these considerations, the general mood seems to indicate that Americans are more wary of travel abroad.

According to industry experts, the loss of American tourists would be felt deeply by communities across the Canada-U.S. border. Andrew Siegwart, president of the Tourism Industry Association of Ontario, expressed skepticism. He too is not ready to believe that American tourists will be flooding back this year. He burnt that a significant share of visitors is from regional hubs such as Toronto, long time engine of tourism, what he called independent and conscientious tourism.

The big picture is that American tourists are down. Across the country, some parts and types of industry are experiencing an influx in tourism from out-of-state travelers. The owner of Country Hideaway RV Campground, Wendy Mooney, witnessed an increase in American tourists this year. She said, “many people are kind of winging it” and moving forward without reading the writing on the wall. John Steele, who runs seven hotels in Newfoundland and Labrador, owns one in Fredericton. He’s observed that overall visitation is “pretty good” at nearly all of his properties, but there is a stark decline in American visitors at his outpost in Gander.

The rapidly changing economic times have definitely affected how and why Americans travel as well. But tighter budgets and fears of crossing the border have prompted many to pull back. According to this, even those who do travel beyond the Wall return much more timidly. In terms of integrated transit planning, Siegwart noted that his counterparts south of the border tend to be more circumspect. This is because of the erratic nature of their administration’s procurement practices.

The new visa requirements for Mexican visitors, instituted last year, had no effect on American travelers. What they most definitely do is create an atmosphere of uncertainty – an undercurrent of worry – in the tourism sector. This uncertainty has caused a domestic booking boom. Canadians are responding to the rising costs of cross-border travel, with more now choosing to travel within their own country.

Duty-free shops have been hit hard, with some seeing their revenues fall by as much as 60 to 80 percent in recent months. This decreased foot traffic is inextricably tied to the loss of American tourists, who often account for a high percentage of sales at these businesses.

Marsha Morrish, manager of a local business, noted a marked rise in visitors from Quebec. She was surprised to get questions from U.S. tourists themselves asking how Canadians view American visitors. They called me in for a real, quick temperature check,” she explained. They were trying to figure out what Canadians think about Americans coming to visit.

A number of social factors are leading to these changes in travel patterns. Your immigration status is a big part of the equation here. On top of that, if you’re a member of the LGBTQIA community, or if your gender marker on your passport differs from your gender expression — it all matters.

Even with these hurdles, there’s a big sense of optimism out there in the industry. We’re feeling optimistic that air access is getting a little better for us. Steele noted, “That’s a huge deal for us! In his Advocacy Advance’s ReImagineTraverse report, he stressed that improved air service would lure more total visitors, not just those flying in.

Lucas Nguyen Avatar