U.S. Customs and Border Protection data reveals a dramatic 17% decrease in Canadian travelers crossing the northern border in March 2024 compared to the previous year, totaling nearly 900,000 fewer entries. This significant drop, impacting tourism-reliant U.S. states like California, is largely attributed to political rhetoric and trade disputes. Consequently, California’s governor launched an ad campaign to attract Canadian tourists, highlighting the state’s welcoming atmosphere. The decline significantly impacts businesses along the border, with duty-free stores reporting sales down 40-50 percent.
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February saw significant declines in Las Vegas gaming revenue (down 14 percent) and tourism (down 12 percent), partly attributed to the absence of the Super Bowl and a shorter month. These decreases, coupled with a sharp drop in Canadian air travel to Las Vegas (up to 55 percent for some carriers), raise concerns about the impact of a worsening US-Canada trade dispute. The reduced Canadian visitation is alarming given Canada’s status as Las Vegas’ top international market and the potential impact on major events like the Global Gaming Expo. Industry experts are monitoring the situation closely, anticipating further consequences in the coming months.
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WestJet Airlines reports a significant shift in Canadian travel patterns, with a decline in US-bound bookings and a corresponding increase in trips to South American destinations. This shift, potentially linked to past trade disputes and political tensions, could severely impact the US tourism industry. A 10% drop in Canadian visits is projected to cost the US $2.1 billion and 14,000 jobs. Canadians express lingering concerns beyond trade, citing issues such as immigration policies and annexation rhetoric as deterrents to future US travel.
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Air Canada’s recent announcement to cut some US-bound flights in March has sparked considerable conversation, and understandably so. The move isn’t entirely surprising given the current political climate and the resulting impact on travel patterns. Many people are choosing to avoid the United States for vacations, opting for destinations elsewhere. This shift in travel preferences seems to be a significant factor influencing Air Canada’s decision.
This decision reflects a broader trend; people are actively choosing to spend their tourism dollars outside the US. Anecdotal evidence abounds: family trips to Florida have been replaced with Mexican getaways; Disneyland dreams have been swapped for Canadian adventures; Vegas stag dos are now Montreal celebrations; and planned Hawaiian anniversaries are becoming French escapes.… Continue reading
John Q. Hosedrinker 
Matt Underwood