✈️ U.S. Trade Tensions Could Mean $8.8B Boost for Canadian Tourism
July 15, 2025
Amid escalating trade tensions and a weak Canadian dollar, more Canadians are choosing to vacation at home—a shift that could result in an $8.8 billion windfall for the domestic tourism industry in 2025, according to the Conference Board of Canada.
Canadians took 18.7% fewer trips to the U.S. this April compared to the previous year. Many are opting to spend locally due to affordability concerns and discomfort with U.S. border policies. Regions like British Columbia, Quebec, and the Maritimes are already reporting stronger domestic bookings.
While the gross potential gain is estimated at $10.3 billion, the Board adjusted it to $8.8 billion to account for fewer Americans visiting Canada amid similar geopolitical headwinds. Economist Kiefer Van Mulligen cautions that consumer confidence remains fragile, but the opportunity is real.
Our Take: This reinforces a broader truth: when Canadians spend money at home—whether on vacations, food, or consumer goods—it pays off more than most people realize. It supports local jobs, strengthens regional economies, and builds resilience into sectors that are too often overlooked. The tourism story is just one example of how economic friction abroad can spark a healthy recalibration at home.
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