Canadians Cut Back on U.S. Travel for Ninth Straight Month

Travel from Canada to the United States has declined for the ninth consecutive month, according to the latest data from Statistics Canada. The report highlights a significant drop in passenger traffic heading south, particularly at Vancouver International Airport (YVR), which recorded a notable shift in travel trends in October 2023.

In October, only 24.4 percent of airport traffic involved trips to the U.S., a decrease from 28 percent in the same month last year. This decline contrasts sharply with the overall increase in air travel within Canada, which rose by 8.5 percent during the same period. Over five million passengers passed through Canada’s eight largest airports last month, marking a year-over-year increase of 4.5 percent.

Changing Travel Preferences

The data indicates that Canadians are increasingly opting for domestic destinations. YVR alone saw over 900,000 travellers in October, reflecting an impressive increase of nearly 6.6 percent compared to the previous year. This trend suggests a shift in holiday preferences, as more Canadians choose to explore their own country rather than crossing the border.

In contrast, air travel from the U.S. to Canada has shown a slight increase, with arrivals up by 1.3 percent year over year. This reflects a growing interest among Americans in visiting Canadian destinations, despite the overall decrease in cross-border travel.

Ground travel has also been affected. The Whatcom Council of Governments in Washington state reported a 37 percent decline in the number of British Columbia licence plates crossing the border by land in October. This downward trend in both air and ground travel highlights a broader shift in travel behaviour between the two countries.

Political Context and Long-Term Trends

The decline in travel to the U.S. began in February 2023, shortly after Donald Trump was inaugurated as President. At that time, concerns arose over his administration’s stance towards Canada, including remarks about annexing the country, which he referred to as the “51st state.” This political climate may have contributed to the hesitancy among Canadians to travel south.

As the holiday season approaches, the travel industry’s focus will likely remain on adapting to these changing preferences. With increasing numbers of Canadians opting for domestic travel, airlines and tourism operators may need to adjust their strategies to attract and retain customers.

The data from Statistics Canada serves as a crucial indicator for the travel sector, revealing not just current trends but also the potential long-term implications of evolving travel patterns between Canada and the U.S.