Why Are Fewer Americans Visiting Canada?
Americans and Canadians have always been close, with many Americans traveling to Canada every year. But since the pandemic, things have changed. Americans aren't crossing the border as much as they used to. Let’s take a look at how big this change is, why it might be happening, and how it’s affecting Canada’s tourism industry.
To help explain this, we’ll use our dataset, American visitors to Canada 2011-2024, by month and mode of transportation.
Fewer Americans Are Visiting Canada
In the first six months of 2024, there was a 5% drop in the number of Americans visiting Canada compared to the same time in 2019. That might not sound like a lot, but it’s having a big effect on the Canadian economy. The most significant laggard when it comes to the mode of transportation is American tourists coming in by land:
Air and Water are not that bad vs 2019, but Land is definitely lagging behind.
Why Aren't Americans Coming Back?
Here are some articles with experts discussing why they think this is happening:
Many Americans still aren't coming to Canada. Is the ArriveCAN app to blame?
Canada's tourism sector rolls out road map to boost visitor numbers to pre-pandemic levels
No one knows for sure why fewer Americans are visiting. Some think people just haven’t gotten back into the habit of traveling to Canada since the pandemic. Others mention the ArriveCAN app, which was used during the pandemic, as one possible reason. But by 2024, most restrictions have been lifted, so that’s probably not the whole answer.
The Exchange Rate Isn’t Helping
You would think more Americans would visit Canada because their dollar is stronger than the Canadian dollar. Right now, one U.S. dollar is worth 1.36 Canadian dollars, which makes everything cheaper for Americans in Canada.
But even this isn’t enough to bring Americans back. One idea is that inflation (rising prices) in Canada is making things more expensive, even with a strong U.S. dollar. This is just a guess, but it could be part of the problem.
Canada’s Tourism Industry Is Struggling
The drop in American tourists is hurting Canada’s tourism industry. It’s not just about losing money, but also losing jobs. Fewer tourists mean fewer people are needed to work in hotels, restaurants, and travel services.
According to the Employment generated by the tourism dataset by Statistics Canada, here's how employment in tourism looked before and after the pandemic:
Employment generated by tourism (x 1,000) - Unajusted
As you can see, fewer people are working in tourism-related jobs than in 2019, especially in travel services and accommodations.
Conclusion
In summary, fewer Americans are visiting Canada than before the pandemic, and the reasons aren’t entirely clear. Even though the exchange rate is in their favor, and most travel restrictions are gone, Americans haven’t returned to Canada in the same numbers. This is having a big impact on Canada’s tourism industry, leading to fewer jobs and less money coming in. While experts are working on ways to bring tourists back, it may take some time for things to return to how they were before the pandemic.
