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Declining U.S. Travel Among Canadians: A Shift in Focus to Domestic Tourism

Recent statistics indicate a notable decrease in Canadian travel to the United States compared to last year. Unlike during the COVID-19 pandemic when “staycation” tax credits encouraged local travel, no similar incentives currently exist to promote domestic tourism in Canada.

Is it time to reconsider introducing such incentives?

According to Amy Butcher, vice-president of stakeholder relations and engagement for the Tourism Industry Association of Canada, this trend reflects a growing sentiment among Canadians. “We’re optimistic about the renewed enthusiasm and commitment towards exploring Canadian destinations,” she stated. Butcher noted an increase in bookings to various locations across Canada compared to the same period last year, highlighting a newfound sense of national pride in travel plans.

While specific statistics on domestic travel trends are still emerging, data released by Statistics Canada revealed a significant decline in Canadians visiting the U.S. The number of return car trips from the U.S. dropped by 31.9% to 1.5 million in March, and air travel saw a similar downturn, with a 13.5% decrease year-over-year to 719,500 return trips.

Kristine Geary, the owner of Maple Leaf Tours, shared her observations of this trend, reporting a staggering decline of 70 to 80% in her U.S. travel bookings. She mentioned that popular destinations, such as New York, which previously sold out monthly tours, have experienced numerous cancellations without rescheduling.

Despite the downturn in U.S.-bound travel, Geary is pivoting her offerings to include various appealing Canadian destinations like Charlevoix, Quebec, Tofino, B.C., and Newfoundland and Labrador. Her upcoming tour in the Charlevoix and Saguenay regions is already sold out, prompting her to suggest that as Canadians turn away from the U.S., they may increasingly explore the diverse regions of their own country. “This could lead to a significant uptick in travel within Canada,” she noted with enthusiasm.

Potential Incentives to Enhance Domestic Travel

Industry experts are weighing the potential impact of reintroducing incentives like “staycation” tax credits to further boost local tourism. Darren Reeder, president and CEO of the Tourism Industry Association of Alberta, emphasized that such a policy could encourage Canadians to explore their own country while stimulating economic activity. “Incentivizing domestic travel through tax credits or promotion programs could provide economic benefits across the nation,” he explained.

In 2022, the Ontario government implemented a “staycation” credit allowing residents to claim 20% of accommodation costs within the province, which received positive feedback. Other provinces introduced similar initiatives, with Manitoba’s temporary incentive in the summer of 2021 demonstrating early success. However, the current political landscape shows limited focus on tourism incentives, with notable announcements lacking from provincial and federal leaders amidst ongoing trade tensions.

While Liberal Leader Mark Carney proposed free entry to national parks this summer if elected, the Liberal Party did not clarify their stance on additional tourism incentives. The NDP has yet to reveal any tourism-specific policies, although they expressed commitment to protecting cultural sectors, including Canadian arts and heritage. The Conservative Party has also not responded to inquiries regarding their support for tourism initiatives.

Reeder urged that any incentive measures should target off-peak travel times, not just the busy summer months. “Implementing these strategies could help businesses navigate tough financial periods,” he stated. Geary expressed concern that the ongoing economic uncertainties, particularly feelings of anxiety surrounding job security, might be causing travelers to hesitate in making holiday plans. “People are being cautious, waiting to see how things unfold,” she noted.

Nevertheless, Butcher remains optimistic about Canadians’ willingness to support local tourism. “There seems to be a strong readiness among Canadians to engage with and discover their own communities and destinations,” she concluded.

As the landscape of Canadian travel evolves, both industry leaders and travelers alike are keeping a watchful eye on emerging trends and potential shifts in policy that could further encourage exploration within Canada.

Source
globalnews.ca