by Natasha Lair
Last updated: 10:45 AM ET, Tue March 18, 2025
As Canadians increasingly choose destinations like Mexico and Europe over the U.S., trade tensions and a weak Canadian dollar are contributing to rising travel costs abroad, with a projected increase in Canadian tourism.
But, the situation is complex.
According to recent reports, while Canadians advocate for a boycott of U.S. travel as a form of protest, some argue that this approach unfairly punishes Americans for their government’s policies.
Prices on the Rise for Non-U.S. Travel
With fewer Canadians travelling to the U.S., travel agencies report increased demand for alternative destinations, including Mexico, the Dominican Republic, and Europe.
“Most of those people are choosing either to look at travelling to Europe in the summer or have looked toward domestic destinations and, obviously, sun destinations like Mexico, the Dominican Republic, and so on, are always really popular,” Andrew Stafford, manager of Flight Centre Kitsilano in Vancouver told 1130 NewsRadio.
The growing demand is already driving up costs.
“If you look at packages like your WestJet Vacations and Air Canada Vacations, et cetera, the prices are starting to creep up already heading into next year,” Stafford said.
“It’s for a couple of reasons—one is increased demand, the other is that most of those hotels down there do charge the tour providers in U.S. dollars. We are starting to see those prices slowly go up, sooner than we normally would.”
Stafford recommends that travellers book early to lock in current rates.
“We would definitely recommend people start looking at Christmas or even into next year’s sun breaks now. Get a deposit down and lock that price in so you don’t lose those rates.”
Ethics of Travel Boycotts
After U.S. President Donald Trump indicated he would impose tariffs on Canadian goods, a movement to boycott U.S. travel and products emerged.
But not all Canadians agree.
CBC News reports some argue that U.S. citizens should not be punished for what their government is doing, and others don’t want American politics dictating their vacation choices.
"Our hope is when we disengage, we're signalling to not just our fellow Canadians, but especially to Americans: 'Hey, this is not normal. We need to change something here,'" Peter Dietsch, a philosopher and economist, told CBC.
However, the consequences of such actions remain uncertain.
"How are the average Americans … going to react to that?"
“Unfortunately, I think the existential threat arguments are stronger. But you know, here's the thing, I think we all try to hang on to normality. But that's exactly the problem," Dietsch told CBC's The Early Edition.
"Things are not normal right now. I think we need to communicate that, and we need to signal that to others who maybe haven't realized that.”
Outside of a political boycott, economic factors are a big influencer for Canadians, leading many to seek destinations where the dollar goes further.
According to reports, there’s increased interest in places like Portugal, Fiji and Japan, where the Canadian dollar is stronger.
Boon for Canadian Tourism
While fewer Canadians are visiting the U.S., Canada is projecting a rise in international tourists, as a weaker Canadian dollar makes the country more attractive to visitors.
Looking at what boosts Canadian tourism, transport is about 21% of the contribution, lodging sits at 27%, meals and drinks bring in 16%, and other activities cover around 36% - forming roughly 1.55% of the nation’s GDP, reports Tourism Review.
A stronger U.S. dollar typically leads to increased spending by foreign tourists in Canada and decreased travel by Canadians abroad.
In 2023, Ontario attracted 47% of travellers from January to November 2024, followed by British Columbia and Quebec.
Domestic tourism, which accounts for about 76% of Canada's tourism revenue, can be influenced by economic conditions.
According to Travel Review, "In these uncertain economic times, many folks seem likely to tighten their wallets regarding domestic spending.
"Still, looking ahead to 2025, it appears that a surge in international visitors could very well give the industry a much-needed boost."
Reports indicate that nearly 669,000 Canadians worked in tourism in 2024—about 3.3% of the workforce.
Advice in Uncertain Times
Regardless of where travellers go, Stafford emphasizes the importance of staying informed and prepared.
“There’s so much happening with travel right now, be it the cost of it, where your money is going, or consistently changing geopolitics and world situations,” he said.
“Always have travel insurance and the most flexible policies you can so you don’t lose money on anything if you do want to change.”
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