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California Tourism Takes a Hit as Canadians Cancel US Travel Plans
The US-Canada trade war is affecting California’s tourism sector, as backlash to the Trump Administration is prompting Canadians to cancel their US travel plans. While travel to the US is down across the board, the decline from Canada has been particularly steep. Recently published data shows that arrivals from Canada fell for a second straight month in March, decreasing nearly 16% from last year. This exceeds the broader 11% decrease seen across all international travel, and compounds the 12% decrease in travel from Canada registered in February.
These trends are concerning for California’s tourism industry, which is one of the largest in the US and forms a significant part of the state economy. International visitors are a disproportionate source of tourism revenue; while only comprising 6% of total tourists, they accounted for 17% of spending. And Canada has long been a top source of tourists. Last year, over 1.8 million Canadians visited California, spending over $3.2 billion. Even with recent tensions, over 81,000 Canadians entered the state in March, the largest number of arrivals from any foreign country.
A recent report suggests things may be even worse for San Francisco. It predicts a 19% drop in visitors to the city from Canada this year, representing almost 60,000 people. And Air Canada announced that it would be cutting some direct flights to San Francisco later this year due to weakening demand.
In response to this problem, Governor Gavin Newsom and Visit California, the state tourism board, launched a $5.2 million campaign to entice Canadian tourists back to the state. The campaign seeks to distance California from the Trump administration, which it blames for the tensions. In a video message to Canadians, Newsom noted that California is “2,000 miles from Washington and a world away in mindset.” The campaign positions the state as welcoming and accepting, appealing to the values it shares with Canadians. It will also highlight Canadians’ contributions to California, such as businesses owned by Canadians, landmarks designed by Canadians, and even acknowledging a Vancouver chef’s disputed claim to inventing the California roll.
Will this campaign work? The CBC spoke to travel agents in Canada who have their doubts. According to consultant McKenzie McMillan, interest in US travel has almost completely evaporated over the last few months, with Canadians rerouting their travel to other, friendlier countries. While few Canadians are specifically upset with California, the anger at the US government over Trump’s tariffs and “51st state” comments will be difficult to overcome. Many Canadians are boycotting the United States, and a perception of effectiveness can only strengthen their resolve. Last month, BC official Ravi Kahlon, who is leading the province’s response to the trade war, praised Canadians who took a stand by cancelling their US vacations. It will likely prove difficult to overcome the emotional valence and social dynamics on this issue through mere advertising.
Image: Air Canada plane by Eddie Maloney, via Wikimedia Commons. |