Tariff reaction: “Travel is now at risk”

As Canadians digest the impact of U.S. tariffs and Canada’s response – which along with retaliatory tariffs also includes the filing of dispute resolution claims at the World Tourism Organization (WTO) and through USMCA – industry associations are reacting.

In a statement, ACTA made it crystal clear that “these tariffs will profoundly harm both the American and Canadian economies,” and it is calling on “our Canadian and American travel industry colleagues to demand their immediate withdrawal.”

Pointing to the long-standing partnership between Canada and the U.S. – with travel between the two countries contributing billions to both economies – ACTA said that with the implementation of tariffs, “travel is now at risk, and we are already seeing signs that demand for US destinations by Canadians is decreasing.”

Rising prices and a falling dollar will weaken “Canadians’ buying power and appetite for travel.”

Says ACTA: “As Canadian companies face higher costs, job losses will inevitably follow, reducing disposable income for millions of households. If these tariffs are not short-lived the direct impact on Canadians’ purchasing power will significantly harm travel advisors as their clients delay or cancel travel plans due to financial constraints.”

Going forward, ACTA said it will be “vigorously advocating for travel agencies, travel advisors, and independent travel advisors with all levels of government.”

The association states: “We are currently assessing the full impact of these tariffs as the situation unfolds and will be communicating with members on a timely basis through our various communication channels.”

As for what travel advisors can do, ACTA offers the following:

• If you normally book travel to the United States, write directly to state senators about how much business you sell to their state, how these tariffs are risking this valuable economic activity and ask them to advocate to have these tariffs removed. Senator contact information is available here: https://www.senate.gov/senators/senators-contact.htm
• Voice your opposition to these tariffs on social media, clearly articulating how they will impact your business and your clients.  Refrain from derogatory comments, just state the facts and reiterate that Americans have been our allies, friends and neighbours for decades.
• Share concrete examples with ACTA about how these tariffs are affecting your bookings and business operations so we can strengthen our advocacy efforts. Please email Avery Campbell, Director of Advocacy and Industry Relations, at [email protected]. We are particularly interested in learning about changes to future bookings to the US and how your business is being impacted, and ideas for support that governments can provide.

Go to www.acta.ca for more.

TIAC intensifies advocacy efforts

In a message to its members, Beth Potter, President and CEO of the Tourism Industry Association of Canada (TIAC) writes that: “For over 50 years, Canada and the United States have shared a special relationship that transcends politics and administrations. This enduring relationship is evident in our deeply integrated economies, including our position as each other’s top visitor destination for one another’s citizens.”

Potter notes that “Since January, we have directly engaged with government officials through the Prime Minister’s Canada-US Summit and a weekly forum with officials from Finance Canada on any support measures.”

And she continues: “Rest assured that we are advocating for meaningful and targeted support measures for our industry. To ensure that Canada remains a competitive destination, we have urged the Minister of Finance to act swiftly to extend the International Convention Attraction Fund (ICAF) and increase funding for international marketing efforts.”

Potter concludes: “We are steadfast in our belief that our industry will not only weather these uncertain times but will emerge stronger than before.”

Tariffs a challenge for Indigenous tourism

In a post on Linkedin, Keith Henry, President & CEO of the Indigenous Tourism Association of Canada (ITAC), said that the US tariffs will present three challenges to Indigenous tourism:

• Pricing is going to increase; flights, food and all services
• Potential to expect new US cancellations, there is growing negative sentiment in the US about Canada
• Domestic tourism may increase but new inflation is going to impact every Canadian, so will more Canadians stay home

Henry observes that: “These are the three main concerns and given the timeframe and the question is what will happen this summer?”

And he continues: “I want to assure the Indigenous Tourism Association of Canada (ITAC) members that we are analyzing and seeking policy solutions with Canada and all partners. I will be in Ottawa this week, raising the very serious concerns about the impacts to Indigenous cultural tourism throughout Canada.”

And Henry concludes: “I am asking all partners and supporters to pull together now more than ever. Our Indigenous tourism businesses and destinations will need all of us working together to ensure the sustainability of tourism throughout Canada.”