Domestic Travel: A Timely Boost for Canada’s Economy

With summer in full swing, travel is front and centre for many Canadians.

As economic turbulence and trade tensions with the U.S. continue to affect Canadian industries, domestic tourism is stepping into the spotlight as a much-needed economic driver. Canadians are increasingly choosing to spend their travel dollars at home, and that choice is creating meaningful ripple effects across the country.

New figures show a significant drop in Canadians crossing into the U.S., with vehicle traffic from B.C. down nearly 43% year over year. Instead of heading south, more Canadians are embracing local travel, supporting small businesses, and rediscovering what our own provinces have to offer. According to a recent survey, 64% of Canadians plan to travel domestically this summer, and 89% say they’re committed to supporting small businesses.

This couldn’t come at a better time. Tourism is one of the few sectors that generates direct local revenue, and it’s uniquely positioned to soften the blow for communities affected by potential trade-related slowdowns. From restaurants to hotels, tour operators to artisans, the benefits of domestic travel touch nearly every corner of the economy.

Even modest shifts in travel habits make a big impact. Canadians spend roughly $22 billion annually in the U.S., and redirecting just a portion of that toward Canadian destinations could mean billions more flowing into the economy.

Global uncertainty, a weaker Canadian dollar, and growing national pride are proving to be a silver lining not only for the tourism sector, but for the greater economy as well. That’s good news, and it strengthens our conviction to maintain the Canadian exposure within the portfolios.

For those heading out of town, safe travels!