Key Takeaways
- Air travel from Canada to the United States has been down for nine straight months
- Cross-border trips have declined for 10 straight months due to icy tensions between Canada and the U.S.
- Businesses south of the border, particularly in border communities, are feeling the economic pressure
- Local businesses are desperate to get British Columbians back, but are hesitant to hire or expand due to uncertainty
- There are no marketing ploys to target and recruit British Columbians, and the only strategy is to continue being a safe and welcoming place for visitors
Introduction to the Decline in Cross-Border Travel
For nine straight months, air travel from Canada to the United States has been down, and for 10 straight months, cross-border trips have declined as more and more people sidestep travelling stateside. The decline comes amid icy tensions between Canada and the U.S. as turbulent trade talks stall and the president continues to threaten to annex Canada, calling it the “51st State.” This decline has resulted in a significant economic impact on businesses south of the border, particularly in border communities.
The Economic Impact on Border Communities
Bellingham Regional Chamber of Commerce President and CEO Guy Occhiogrosso understands the hurt, frustration, and why people are not visiting. He admits local businesses are desperate to get British Columbians, and their money, back. The economic pressure is being felt by businesses in communities such as Blaine, Point Roberts, and Sumas, which are at a loss due to the decline in cross-border travel. Occhiogrosso states that these communities are in panic mode, and the situation has been chaotic for about six years now, due to the pandemic and Canadian sentiment.
The Concerns of Local Businesses
Occhiogrosso has been speaking to local businesses and admits they’re concerned. The word that keeps coming to his mind is ‘hesitant.’ There’s a hesitancy for businesses to hire, and there’s a hesitancy for businesses to expand. He hasn’t heard of any layoffs as a result of a drop-off in Canadian tourism, but points out that staffing levels aren’t exactly growing at an ideal pace. This hesitancy is due to the uncertainty surrounding the trade talks and the president’s threats, which are making it hard for businesses to plan for the future.
Looking Ahead to 2026
Looking ahead to 2026, Occhiogrosso says there are no marketing ploys to target and recruit British Columbians that he feels would be genuine. The only strategy that local businesses can do is to continue being a safe and welcoming place for visitors. This approach is necessary because there’s not a lot that businesses can do other than continuing to communicate with their neighbours and friends who live on the other side of the border. Occhiogrosso shared a message to anyone who may consider crossing the border for leisure, stating that they’re ready, value their presence, and appreciate them spending their hard-earned dollars in their community.
Statistics on Cross-Border Travel
Statistics Canada released new data that showed passenger traffic through major airports in the country, including Vancouver International Airport (YVR), to American destinations had decreased for the ninth month in a row in October. In contrast, the federal agency pointed out that over 5 million people were recorded checking in at Canada’s eight largest airports in October, which is an increase of 4.5 per cent year over year. YVR saw more than 900,000 people in that time, leading to an increase of nearly 6.6 per cent compared to the previous year. On the other hand, the Whatcom Council of Governments released its latest data, collected at four land border crossings, showing British Columbians continue to avoid travelling to the U.S. for the 10th month in a row, with a decline of 38 per cent in November alone.
Conclusion and Future Outlook
In conclusion, the decline in cross-border travel has had a significant economic impact on businesses south of the border, particularly in border communities. Local businesses are desperate to get British Columbians back, but are hesitant to hire or expand due to uncertainty. The only strategy that local businesses can do is to continue being a safe and welcoming place for visitors. As the situation continues to unfold, it remains to be seen how the decline in cross-border travel will affect the economy and relationships between Canada and the U.S. in the long term.