Key Takeaways
- Canadians are continuing to avoid travel to the United States, with return trips down almost 24% year-over-year in November.
- The decline in Canadian travel to the US is expected to result in a significant loss of revenue, with the US projected to lose around $12.5 billion in international visitor spending in 2025.
- Efforts are being made to draw Canadians back, including some hotels in Las Vegas honouring the Canadian dollar at par.
- The decline in travel is attributed to various factors, including a perceived lack of mutual respect and affection between the two countries.
- The situation is affecting small businesses and local economies, with many relying on Canadian tourism to stay afloat.
Introduction to the Decline in Canadian Travel
The latest statistics show that Canadians are continuing to avoid travel to the United States, with return trips down almost 24% year-over-year in November. This trend is a cause for concern, as it not only affects the US economy but also has a significant impact on local businesses and communities that rely on Canadian tourism. According to Washington state’s lieutenant-governor Denny Heck, the decline in Canadian travel is an "unforced error" that could have been avoided. Heck expressed his concerns about the impact of the decline on local businesses, jobs, and revenue, stating that "when I hear that, what I think about is all the businesses that will be impacted, the jobs that won’t be able to be held on to, all the lost revenue for the local governments that benefit from that level of economic activity."
The Impact on Local Economies
The decline in Canadian travel is having a significant impact on local economies, particularly in areas that rely heavily on tourism. The city of Seattle, for example, is usually a popular destination for Canadian travelers, but even with a Seattle Seahawks playoff game scheduled, few vehicles were heading south at the Peace Arch and Sumas border crossings. This lack of travel is resulting in lost revenue for local businesses, including hotels, restaurants, and shops. Heck emphasized the importance of Canadian tourism to the local economy, stating that "Washingtonians love Canadians" and that the state has a "long-standing, deep kinship with the people of British Columbia." He also acknowledged that the decline in travel is not just an economic issue, but also a matter of mutual respect and affection between the two countries.
Efforts to Draw Canadians Back
In an effort to draw Canadians back, some hotels in Las Vegas are honouring the Canadian dollar at par. The Circa Resort & Casino, the D Las Vegas, and Golden Gate Hotel & Casino are all located in downtown Las Vegas and will receive the Canadian dollar at par rate, with proof of Canadian citizenship. However, even this incentive may not be enough to lure Canadian travelers back, as the decline in travel is attributed to a range of factors, including a perceived lack of mutual respect and affection between the two countries. Travel expert Claire Newell noted that the US is projected to lose around $12.5 billion in international visitor spending in 2025, a massive number that is likely to have a significant impact on the US economy.
The Bigger Picture
The decline in Canadian travel to the US is part of a larger trend, with the US being the only country out of 184 in a recent study to experience a decline in international visitor spending. The World Travel and Tourism Council reported that the US is projected to lose around $12.5 billion in international visitor spending in 2025, a significant decline that is likely to have far-reaching consequences for the US economy. Heck hopes that the upcoming FIFA World Cup will provide an opportunity for Canadians to cross the border and support local economies, stating that "it’s a huge global event" and that he wants to "encourage all Washingtonians to go north to see the games that are there." However, it remains to be seen whether this event will be enough to reverse the decline in Canadian travel to the US.
Conclusion and Future Prospects
In conclusion, the decline in Canadian travel to the US is a complex issue with significant economic and social implications. While efforts are being made to draw Canadians back, including honouring the Canadian dollar at par, it is unlikely that these efforts will be enough to reverse the decline on their own. The US needs to address the underlying issues that are driving the decline in Canadian travel, including the perceived lack of mutual respect and affection between the two countries. By working to rebuild relationships and promote tourism, the US can hope to recover some of the lost revenue and support local economies that rely on Canadian tourism. Ultimately, the situation highlights the importance of maintaining good relationships with neighboring countries and the need for ongoing efforts to promote tourism and economic cooperation.
