Canadian travellers are keeping their distance from the U.S., a country that was once their top destination, as tensions between the two nations grow.
The number of Canadian-resident return trips by automobile from the U.S. plunged 31.9 per cent in March from a year ago, Statistics Canada said Thursday. That’s the third straight monthly decline and followed a 23 per cent drop a month earlier.
U.S. President Donald Trump’s attacks on Canada’s economy and sovereignty have spurred a swell of national pride and anger at the U.S., prompting boycotts of American products and public pushback from prominent Canadians including actor Mike Myers.
U.S. tariffs on imports of Canadian steel, aluminum and vehicles have threatened industries and jobs that rely heavily on trade with American businesses and consumers. The Canadian economy would likely fall into a recession if broader tariffs were to come in to place.
The U.S. has long been the most popular destination for international trips among Canadians, many of whom take winter refuge in warmer places including Arizona and Florida. Canada consistently posts a services trade deficit with the U.S., mainly because of travel.
The number of Canadian-resident return trips by air from the U.S. also fell, decreasing 13.5 per cent in March from the same month a year ago. On the other hand, return trips by Canadians from foreign countries other than the U.S. rose 9.1 per cent.
Major airlines have already adjusted routes amid softer U.S. bookings. Earlier this month, the Canadian government also issued a new warning for travelers entering the U.S., saying that they should expect scrutiny at the border.
Canadians made up the biggest group of tourists in the U.S. Last year, Canadian visitors generated US$20.5 billion in spending in the U.S., according to the U.S. Travel Association. A 10 per cent reduction in Canadian travel could mean 2 million fewer visits, $2.1 billion in lost spending and 14,000 job losses, the group said.
With assistance from Mario Baker Ramirez.
Randy Thanthong-Knight, Bloomberg News
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