Leisure and hospitality franchises bracing for a challenging season
In 2024, Canadian tourists spent US$20.5 billion...
In 2024, Canadian tourists spent US$20.5 billion visiting America. However, visitor numbers this year have plummeted, leaving many leisure and hospitality franchises concerned about the bottom line as the summer vacation period approaches.
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Why Canadian visitor numbers are dropping
The biggest reason Canadian visitor numbers are dropping is uncertainty resulting from President Trump's policies, particularly when it comes to tariffs and his view of Canada as the 51st state.
Canadian travelers are voting with their feet, making alternative travel arrangements for the summer that do not involve visiting the United States. Unfortunately for businesses, many of which do not share these views, they will be impacted by a situation outside of their control.
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What can be done to overcome this challenge?
It will be challenging to attract Canadian tourists to the US this summer, but doing nothing could have severe financial consequences. It may be worth taking the lead from the Seattle Hospitality Group's Open Arms for Canada program, which saw 40 local businesses offer discounts and special offers to Canadian travelers during the period from May 9 to 11, when the Toronto Blue Jays played against the Seattle Mariners. The program was accessed more than a thousand times during these three days, benefiting both travelers and local businesses, and it is expected that a similar program will be launched in time for the summer period.
Businesses in the Plattsburgh and Adirondack region have already joined the movement to incentivize Canadian travelers, recently launching a new website that offers them exclusive discounts at tourism-related businesses [1]. As these two examples show, there is power in numbers, so it may be worthwhile for franchises to collaborate with other businesses in their local area to develop a discount program targeted specifically at Canadian travelers in a bid to entice them back.
Special offers and discounts won't work to attract back all of the lost Canadian business, but it is a stepping stone in the right direction that shows a desire for unity. Even if only 50% of the previous customers return, it is still more than what would otherwise be expected during this period of political turmoil.
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The summer season can be salvaged
It might not be possible to reverse the damage that has already been done, but leisure and hospitality businesses would be wise to consider offering discounts and special offers to their Northern neighbors in a bid to rescue what could otherwise be a very challenging summer season.
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Resources:
[1] https://northcountrychamber.com/chamber/cross-border-specials
