doesn't like
but in one corner of the U.S. economy, it may be helping create it.
For the first time since a global pandemic locked down the world in 2020, the number of international travelers coming to the United States is projected to decline, with a boycott by Canadians cited as the main reason.
The US Travel Association predicts
that travel to the United States this year will fall to 85 percent of 2019 levels and foreign tourist travel spending will fall 3.2 percent, a loss of US$5.7 billion compared to last year.
“Significantly fewer visits from Canada are the primary driver of this decline, and the volume of visits from countries other than Canada is expected to remain flat,” the report said.
“As international outbound travel continues to grow, the tourism trade deficit will reach nearly $70 billion in 2025.”
Outraged
and his comments about Canada being the 51st state, many Canadians boycotted travel to the US.
Last month, 30 percent fewer people crossed the border into the United States in vehicles than a year earlier. This is the 10th straight month of decline.
Statistics Canada reported Wednesday
. Air travel to the United States is down 24 percent.
Canadians traveling to the US by car, October
important for America. Last year, the industry contributed $2.6 trillion to the economy and supported more than 20 million jobs.
According to the International Trade Administration, every 40 foreign visits support one U.S. job.
The U.S. Travel Association expects international travel to rebound in 2026 as America hosts the World Cup with Canada and Mexico and celebrates its 250th anniversary. Los Angeles will host the Summer Olympics in 2028.
But he warns the US risks further cuts to international travel, with potential increases in visa fees, longer wait times for visas and “negative perceptions of the US in key markets”.
WITH
It won't be long before retailers and tourism operators are likely to feel the pain of their absent neighbors.
Traditionally, many Canadians travel to the United States each year to shop, but if current trends continue, that number will decline this year.
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In October, the Toronto Blue Jays cut Canadian entertainment spending.
According to
Royal Bank of Canada Consumer Spending Tracker
Most of last month's spending came from entertainment and the arts, and nearly all of the growth came from Ontario, which hosted four of the seven World Series games. The Jays lost to the Los Angeles Dodgers in the final game of the series.
“The Blue Jays in the World Series delivered a notable boost in discretionary spending, particularly in Ontario, highlighting consumers' appetite for experiences even amid economic headwinds,” said RBC economist Rachel Battaglia.
Along with the Jays, spending on entertainment and the arts as a category has risen sharply since the province relaxed online gambling rules, she said.
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Donald Trump's trade war and rising unemployment have Canadians cautious about spending ahead of the holiday season, and that's putting pressure on major retailers to ramp up their deals. Commerce giants like Amazon.com are running Black Friday deals early and offering deeper discounts, according to analyst Bruce Winder. Find out more about l.
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Today's Posthaste was written by Pamela Haven with additional reporting by Financial Post, Canadian Press and Bloomberg staff.
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