Some Canadians are scrapping plans to travel south of the border for vacation in a bid to stay local after U.S. President Donald Trump threatened to annex Canada and imposed a series of tariffs on Canadian goods.

Toronto

Recent surveys indicate a growing trend among Canadians to vacation domestically rather than travel to the United States. A Bank of Canada survey found that 55% of Canadians plan to spend less on U.S. vacations, while a TD Bank poll showed 64% intend to travel within Canada. This shift has been influenced by political tensions, including threats of annexation and tariffs imposed by the U.S. government, which have spurred a movement to boycott U.S. businesses and avoid cross-border travel.

Travel data supports this trend, with a 17% decrease in air travel and a 37% decrease in car trips to the U.S. in May compared to the previous year. Despite higher costs for some domestic flights, Canadian airlines are experiencing increased demand, particularly for destinations in the north, while some routes between Canada and the U.S. have been suspended due to lower demand.

Canadians vacationing closer to home as they ditch U.S. travel

If you ask Canadians about whether they plan to travel to the U.S. for a vacation, you may get an answer that reflects a newfound desire to stay local. With everything going on in the U.S., I feel like a lot of Canadians kind of want to stay home. I won't be going to the U.S. No. Recent numbers back up the sentiment. A Bank of Canada survey this week showed that 55% of Canadians plan to spend less money vacationing in the United States this year. And a survey by TD Bank showed 64% of Canadians polled plan to travel within the country. The shift started earlier this year when U.S. President Donald Trump threatened to annex Canada and imposed a series of tariffs on Canadian goods. That has spurred a bi-Canadian movement boycotting U.S. businesses and, in turn, avoiding travel south of the border. As we look at Canadians traveling south, we are seeing a decline. Joe Ahmadi is from Destination Canada, a government agency that promotes Canadian tourism. We've seen over the course of the first quarter of 2025, a 4% increase in Canadians traveling domestically. Taking their hard-earned money and spending it in their own backyards to celebrate and enjoy all the authentic natural beauty that Canada has to offer. The number of return trips from the United States made by Canadians via air travel fell 17% in May from a year earlier. According to Statistics Canada, the number of such trips made by car fell by 37% that month. Torontonian Divya Mohan is among those who decided to cross the U.S. off her travel list in favour of destinations in Canada. U.S. was something we had planned for last year. But with the recent changes to travel advisories, the general climate around travel in the U.S., it just didn't seem like it was the right time for us to go. But traveling within Canada can be expensive. Domestic flights to remote locations often cost more than traveling to the United States or even Europe. Still, airlines are seeing rising demand. Air North, which serves the Yukon and Northwest Territories and the country's north, said arrivals to the Yukon rose 7.6% from January to June this year. Meanwhile, WestJet suspended nine routes from Canada and the United States in May, citing lower demand. For more stories, visit nyseagrant.org

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