Amid strained U.S.-Canada relations due to a trade war, both Canadians and Americans are scaling back cross-border travel. Recent data from Statistics Canada reveals a 10.4% decrease in U.S. residents traveling to Canada by car in June, a more significant drop compared to the previous month.
Approximately 1.4 million Americans visited Canada by automobile last month, down from around 1.56 million in the same period last year. This decline is worrisome for Canadian leaders and businesses as American visitors made a record $15 billion contribution to the Canadian economy last year.
Despite this decline, some tourist destinations are seeing an increase in domestic and non-U.S. international travelers, partially offsetting the reduction in American spending. Conversely, Canadian trips to the U.S. continue to decline significantly.
The number of Canadians returning from trips to the U.S. by air decreased by 22.1% in June compared to the previous year, with a staggering 33.1% drop in Canadian-resident return trips by car.
Notably, a notable number of U.S. residents are also opting out of traveling to Canada. Data indicates a decline in American-plated cars entering Canada since the onset of the trade dispute.
Niagara Falls, Ontario, heavily relies on American tourists, with up to three million of them visiting annually. However, figures from the Niagara Falls Bridge Commission show a sharp decline in Canada-bound car trips, particularly over the Rainbow Bridge.
While American tourism has decreased, non-U.S. international visitors to the Niagara region are on the rise, potentially due to foreign tourists avoiding the U.S. and choosing Canada instead. Visitors from countries like the U.K., France, Australia, and others are contributing to offsetting the decline in American visitors.
Niagara-on-the-Lake Lord Mayor Gary Zalepa acknowledges the decline in American visitors but remains optimistic. He highlights the importance of American tourists to the town’s tourism industry and emphasizes the need to attract visitors from new markets going forward.