A new report argues that Canada’s trade war with the United States might come with a silver lining for the domestic tourism industry.
The Conference Board of Canada says its April travel intentions survey suggests roughly 27 per cent of Canadian respondents are considering a trip to the U.S. in the next few years, down from more than 50 per cent in the same survey last November.
The report estimates that Canadians boycotting the U.S. for cross-border vacations could net the country’s tourism sector up to $8.8 billion in extra business this year as travellers stay closer to home.
It’s predicting that windfall despite signs in the past few months of a drop in border crossings by American tourists — typically Canada’s largest source of in-bound travellers.
Kiefer Van Mulligen, senior economist at the Conference Board of Canada and the report’s author, says Canada could also pick up some “slack” from overseas tourists alarmed by U.S. President Donald Trump’s efforts to upend global trade and annex nations like Greenland.
Van Mulligen says fears of an economic slowdown tied to the tariff dispute could also encourage Canadians to rein in spending and opt for more affordable “staycations.”
