A year and a half after Canadians began avoiding trips to the United States, some are starting to travel there again. Statistics Canada’s latest data shows that in June, Canadian residents returning from the U.S. increased by 3.2% compared to the same period last year. This marks the third consecutive month of growth in inbound travel from the U.S. by Canadians, following increases of 9.5% in May and 1.4% in April.
The rise in travel was primarily driven by an uptick in car travel, with a 5.2% increase in Canadians returning from the U.S. by car compared to the previous June. However, air travel from the States to Canada decreased by 3.8% year-over-year for June.
Despite the slight increase in car travel, Canadian travel to the U.S. has not yet returned to pre-pandemic levels. This means that while there is some optimism in the U.S. tourism industry, businesses may not see a significant boost in the near future.
Compared to June 2024, Canadian return travel from the U.S. last month was down by a significant 28.7%. Wayne Smith, director of Toronto Metropolitan University’s Institute for Hospitality and Tourism Research, views the recent travel uptick as a step towards normalization rather than a complete return to previous travel patterns.
Kristy Kennedy, vice president of marketing and operations at the North Country Chamber of Commerce, noted a slight increase in Canadian travelers near the New York State border with Quebec. She mentioned that some local businesses have observed more Canadian visitors, indicating a potential positive trend.
Amir Eylon, president and CEO of travel consultancy Longwoods International, suggested that promotional campaigns and discounts could have played a role in the recent increase in cross-border travel. Factors such as high airfare costs and the World Cup co-hosted by Canada, the U.S., and Mexico may have also contributed to the boost in travel.
While there is cautious optimism in the industry due to three consecutive months of growth, Smith believes that the shift to car travel and other factors like changing travel habits and currency exchange rates could pose challenges for the U.S. in attracting Canadian tourists back in significant numbers.