Canadian leisure travel to U.S. down 40% in February, Flight Centre says

Shift in Canadian Travel Preferences: A Move Away from the U.S.

In recent months, Canadian travelers have been increasingly reconsidering their travel plans to the United States, with a significant decline in bookings and border crossings. This shift is attributed to a combination of factors, including tariff threats by the U.S. administration and a weaker Canadian dollar. Additionally, the political climate and encouragement from Prime Minister Trudeau to avoid U.S. travel have played a role in this trend. The decline began to manifest in November but saw a sharp drop of 40% in leisure travel bookings to the U.S. by February, as reported by Flight Centre Canada.

The Broader Context: Economic and Political Factors

The U.S. administration’s tariffs announced in early February have been a significant deterrent for Canadian travelers. Furthermore, the weaker Canadian dollar has made travel to the U.S. more expensive, leading many to seek alternative destinations where their money goes further. Travel agencies such as B.C.-based Travel Best Bets have observed similar trends, noting that Canadians are expressing a sense of pride and reluctance to spend their dollars in the U.S. at this time.

Exploring New Destinations: Beyond the U.S.

As Canadian travelers look beyond the U.S., they are gravitating towards countries where the cost of travel is lower and cultural experiences are rich. Destinations such as Vietnam, Mexico, Portugal, and Eastern European countries like Poland and the Czech Republic are gaining popularity. These countries not only offer affordable travel options but also diverse cultural experiences, making them attractive alternatives to the U.S.

Domestic Tourism on the Rise

Interestingly, Canadians are also turning to domestic travel, particularly to Canada’s East Coast. There has been a notable increase in interest in "fly-and-drive" vacations, with car rentals and bus tours becoming highly popular. This trend is expected to continue into the summer months, signaling a potential boost for Canada’s domestic tourism industry.

Implications for the U.S. Tourism Industry

The decline in Canadian visitors could have significant economic implications for the U.S. travel sector. According to the U.S. Travel Association, Canadians made 20.4 million visits to the U.S. in 2024, contributing $20.5 billion to the economy. A 10% drop in Canadian travel could cost the U.S. tourism industry $2.1 billion and result in the loss of 14,000 jobs, underscoring the importance of Canadian visitors to the U.S. economy.

Conclusion: A New Era in Travel Preferences

The combination of economic and political factors has led to a noticeable shift in Canadian travel preferences, with a significant move away from the U.S. in favor of international destinations where the Canadian dollar