Page 26 - INSIGHT MAGAZINE_July 2025
P. 26
BRIAN'S BLOG
Tariffs set to impact
local tourism
The impact of U.S. President Donald Trump’s tariffs threats on
Canadian imports and Canada’s counter tariffs has significant
implications for various sectors of our economy, including tourism,
with Ontario poised to experience both direct and indirect effects
on this industry.
The Canada-U.S. border has traditionally seen substantial movement
of tourists in both directions. However, these escalating trade
tensions have led to a surge in nationalistic sentiments, influencing
travel decisions.
Reports show that many Canadians are boycotting travel to the U.S. in Potential side-effects
response to Trump’s tariffs, opting instead for domestic destinations However, economic downturns typically result in reduced disposable
or alternative international locations, a trend that has not gone income, which can lead to a decline in domestic tourism as residents
unnoticed by tourism experts. may cut back on travel and leisure activities.
“We're hearing that 40% of Canadians that had booked a trip to the Moreover, the weakening of the Canadian dollar is likely to make
U.S. have cancelled their plans,” says Explore Waterloo Region CEO international travel more expensive for Canadians, potentially
Michele Saran, noting travel destinations nationwide are expecting an reducing outbound tourism. But on the flipside, a weaker Canadian
uptick in tourists this summer. dollar could make Canada a more attractive destination for foreign
“If I was a Canadian destination that actively pursued the U.S. market, tourists, as their currencies would have greater purchasing power.
right now I would be pushing the exchange rate really hard.” There are also potential side-effects surrounding the impact
heightened political tensions and changes in consumer sentiment
that have been created.
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