- Travel firms have reported that visits from Canadians to the U.S. have decreased due to the trade dispute with President Trump.
- Canada has seen an increase in tourists heading to Mexico as an alternate choice to avoid traveling to the USA.
- People from Canada are also choosing to vacation within their own country or go to Europe and the Caribbean.
A theme in travel industry earnings this week has emerged:
Fewer tourists from Canada are traveling to the US.
.
There are indications as well that they might be heading towards their ultimate destination instead.
Mexico
.
Hilton CEO Christopher Nassetta mentioned during an earnings call on Tuesday that the company, which mostly operates within the U.S., experienced a downturn.
Canadian visitors
. Caesars Entertainment, the Nevada-based hotel and casino company, also said on its earnings call that Canadian visitation was down. Both companies said, however, that Canadians made up a small portion of their overall business.
Booking Holdings, an online travel booking corporation, additionally stated that
Canada-US travel
had decelerated and provided some understanding of where Canadian tourists are now choosing to go. The firm’s portfolio encompasses Booking.com, Priceline.com, and Kayak.
In the recent quarter, we noticed significant shifts in various travel behaviors. Specifically, there was a deceleration in the influx of travelers entering the U.S., notably those coming from Canada, with less pronounced decreases seen among European visitors,” stated Ewout Lucien Steenbergen, the company’s Chief Financial Officer, during Tuesday’s earnings conference. “Nevertheless, positive developments were evident in other travel routes—such as trips between Canada and Mexico—which contributed to steady expansion overall.”
Steenbergen also mentioned that the firm remains indifferent about their travel destinations since customers typically spend an equivalent amount, albeit at different locations.
The corporation’s financial performance was the most recent indication that Canadians are shunning US trips due to President Donald Trump’s policies.
trade war
And his remarks regarding Canada becoming the 51st state. Additionally, indicators from travel firms suggest that Canadians prefer traveling to Mexico rather than the U.S.
A market research firm called Longwoods International, which focuses on the travel and tourism sector, revealed in a report released on Tuesday that Mexico ranked high among Canadians’ preferred destinations instead of the U.S. This study, carried out earlier this month, involved 1,000 adult Canadians who had traveled within the last three years and intended to embark on another journey in the following two years.
According to the survey, 36% of participants indicated that they initially intended to travel to the US within the following 12 months but ultimately canceled those plans. Additionally, 60% reported that US governmental policies, trading behaviors, or public remarks have decreased their likelihood of visiting the country over the upcoming year.
Among those who mentioned that U.S. government policies impacted their travel arrangements, 40% opted for traveling domestically as an alternative, whereas 27% decided to visit another foreign country. The top picks for international trips consisted of Mexico, Portugal, Spain, France, and the Caribbean.
In March,
WestJet Airlines
Also mentioned was that Canadian travelers preferred choosing Central America as their destination rather than the U.S.
Definitely, there has been a response,” stated Alex Cruz, who serves as a vice chairman at WestJet, during an appearance on CNBC regarding the impact of Trump’s trade policies on Canadian travelers heading to the U.S. “However, what we’re observing is that individuals are altering their travel plans. Instead of choosing places like Phoenix or Florida, they are now opting for destinations such as the Dominican Republic, Jamaica, and Mexico.
Christian Wolters, who serves as the Canadian president for travel organizer Intrepid Travel, also mentioned
NBC News
Last month, Canadian consumers were shunning travel to the US and opting instead for domestic trips or destinations like Mexico and Costa Rica.
According to the US Travel Association, a decrease of 10% in tourists coming from Canada—the leading source of international visitors to the U.S.—could result in a loss of $2.1 billion in expenditures and around 14,000 job losses.
Would you like to share an experience related to traveling between Canada and the US? Reach out to this journalist at
kvlamis@businessinsider.com
.
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on MSN.
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