Despite growing political tensions between Canada and the United States, many Orillia residents are still travelling south of the border, according to local travel agents.
While the trade war and new tariffs have raised concerns, the biggest factor influencing travel decisions appears to be the exchange rate rather than politics.
On Thursday, the Canadian government imposed a 25 per cent tariff on certain imports from the U.S., adding another layer of financial strain for cross-border shoppers. However, Corry Ticknor, owner of Orillia’s Gotta Go Travel TPI, said that, so far, travel bookings to the U.S. have not slowed down.
“I’ve actually had a couple of inquiries just yesterday about cruises leaving from the States with pre-stays in places like New York,” Ticknor said. “Of course, a lot of people already had their March break trips booked."
While some Canadians have voiced strong opinions about avoiding U.S. travel due to tariffs and political concerns, Ticknor has not seen a widespread shift in behaviour.
“What I’m hearing from clients is that it’s not so much about politics or the president himself, but more about the cost of the dollar,” she explained. “The exchange rate is so high right now, and that’s where it’s really hitting people.”
The newly imposed 25 per cent tariff on certain U.S. imports makes cross-border shopping trips less appealing, said Ticknor, who admitted she had reconsidered a personal shopping trip due to the added costs.
“By the time you factor in the exchange rate and the tariff tax, you could be paying 75 to 90 per cent more than you would have before,” she said. “It’s just not worth it.”
While some travellers may avoid shopping-heavy trips to places like Buffalo, Ticknor believes destinations like Florida, New York, and California will still see Canadian visitors.
Eleanor Tinney, a senior consultant at Trapnell InTravel, agrees that travel habits are unlikely to change dramatically, but there could be an impact over time.
“I haven’t had a lot of people call and say, ‘I was thinking of going to the States, but now I’m not,’” Tinney said. “But maybe they wouldn’t call to tell us that. Maybe they would just change their plans on their own and not book.”
With increased costs for U.S. travel, some Canadians are choosing destinations closer to home or overseas.
Ticknor has seen growing interest in travel within Canada, including rail journeys on the Rocky Mountaineer, visits to Quebec City and Montreal, and summer trips to the east coast.
“I’ve always been trying to promote Canada,” Ticknor said. “We have a beautiful country with so much to see and experience.”
Mexico and Europe are also proving to be strong alternatives. Tinney noted many clients are still booking all-inclusive vacations and cruises instead of heading south to the U.S.
“I’m booking lots of Europe trips, lots of Mediterranean and northern Europe cruises,” Ticknor added. “Mexico remains a great spot for honeymoons and all-inclusive getaways.”
While Canadians are still booking trips to the U.S., travel agents say American businesses may start to feel the impact if cross-border tourism slows. Some U.S. operators are already lowering prices to attract Canadian travellers.
“There are a lot of (U.S. travel) companies that know Canadians make up a big part of their business,” Ticknor said. “They’re offering select deals and Canadian-friendly pricing on certain cruises and travel dates.”
However, Tinney believes overall travel costs may rise due to the financial impact of recent weather-related disruptions in the airline industry.
“The airlines and tour operators have lost millions due to delays and cancellations from bad weather,” she said. “They’re going to have to recoup that money somewhere, and I think we’ll see airfare increases rather than decreases.”
While concerns over tariffs and political tensions remain, travel agents believe any dip in U.S. travel will likely be temporary.
“I’m an optimist,” Tinney said. “People are worried right now because they don’t know what’s going to happen. But when anything like this happens, after some time, people go back to booking the way they always did.”