Canadian tourism operators are bracing for uncertainty, with more than half expressing concern that ongoing U.S.-Canada trade tensions could disrupt critical seasonal travel revenues.
As the summer tourism season kicks off, 58% of small business owners are concerned the ongoing U.S.-Canada trade dispute will impact their operations, according to new data from the Canadian Federation of Independent Business (CFIB).
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“For many businesses, summer is a make-or-break season. Tourism operators in particular count on summer revenues to get ahead of their debt and high costs,” said Louis-Philippe Gauthier, CFIB’s vice-president for the Atlantic region.
Nearly 40% of business owners expect tourism revenues to remain steady compared to last year, while roughly equal shares anticipate either an increase or decline.
Among those surveyed, 37% reported noticing changes in tourist behaviour, with 58% of that group seeing more interest from Canadian travellers and 37% noting visitors are opting for more affordable options.
A public opinion poll conducted with the Angus Reid Forum found that 10% of Canadians have cancelled business trips to the U.S., and 22% have cancelled personal travel.
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Of those with finalized or pending summer travel plans, 56% intend to stay within their province, 51% plan to visit another part of Canada, and 21% will travel internationally outside the U.S. Only 11% plan to travel to the U.S. this summer.
“With more Canadians looking to stay within the country this summer, now is a great opportunity to explore our local businesses and communities and keep the loonies local,” Gauthier said. “Every time Canadians choose to shop at a local small business, 66 cents of every dollar stays in the local economy.”
CFIB is urging all levels of government to ease licensing and permit requirements and promote domestic travel and local shopping.
“The tourism sector is one of the largest employers in Canada, and most tourism operators are small businesses,” said Kalith Nanayakkara, CFIB’s senior policy analyst for B.C.
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“Governments and Canadians have a significant role in strengthening our economy and supporting independent local businesses. We encourage people from coast to coast to get out and explore their communities, their provinces and their country this summer to create new memories and help give small businesses a much-needed boost.”
The Your Voice survey was conducted from May 6 to June 2 and received responses from 2,190 Canadian business owners. A public opinion poll was conducted online from June 6 to 9 with a representative sample of 1,501 adult Canadians who are members of the Angus Reid Forum.
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