Tariffs & tourism in Atlantic Canada
As global economic and political tensions evolve, so do travel trends. With all of the American tariff commentary and a growing wave of ‘buy Canadian’ on the shelves, many Canadians also are reconsidering where their vacation dollars are being spent.
We are only mere days into the threat of tariff troubles and we are already consistently hearing from a large number of guests about exploring new travel plans for 2025. The conversation goes the same every time - ‘we usually travel down to the States, but are wanting to spend our money in Canada instead and explore something new in our own country.’
From what I can tell, Ontarians and Quebecers seem to be all over this idea.
One of the biggest winners in this shift of mindset seems to be Atlantic Canada. It all makes sense in my mind anyhow.
Now, I am no economist and I barely qualify as a passable researcher/writer, but I am boots on the ground here on the Coast and we book a lot of travel. This is what we see happening already. It’s a theory and I am sure it has a little confirmation bias on my side, however it certainly ‘feels’ like this is what is happening here and the numbers, so far, are backing it up.
Let’s go …
That old feeling of what it means to be Canadian
While Canadians brace for the possible sting of economic nationalism from South of the border, it has fuelled an unintended similar effect here in the North - ‘You’re going to make my life more expensive? Ya, well you don’t get my money then!’
Canadians are tough and we are very patriotic. We don’t get pushed around. Sure, we have lost our unity a little (a lot?) since Covid, but read some history - Canadians don’t roll over.
True Canadian pride is back, it is palpable and we are going out of our way to support our own. From decisions at the grocery store, to buying made-in-Canada products, to where we will vacation this summer with the family - we are now making the conscious decision to support ourselves.
I would say it’s a good thing and it’s a really great thing for Atlantic Canada tourism.
The Exchange Rate
This math is as simple as it gets - we are far more cost effective for both Canadian and American travellers. Period.
With the Canadian dollar hovering around 70 cents to the US dollar, vacations in the US just cost more. While the exchange rate issue for Canadians has been there for a number of years, couple that with the pro-Canadian sentiment from above and paying more is making less and less sense.
Canadian travellers simply get more bang for their buck by travelling domestically instead.
How about American travellers, anything new happening there? Americans generally make up about +/- 30% of our prime season guests - June, July, August and September. This year the number is closer to 40%, not a huge jump but a noticeable one. The conversation is always the same - Atlantic Canada is far better value when compared to the Eastern US seaboard vacation haunts. Something new at significantly less of a price.
In an expensive world, saving money where you can is a major driver of ‘where’ your vacation dollar is being spent. See below …
More Affordable, High-Quality Travel
Setting aside the exchange rate, tourism and travel-related prices in general are often far less expensive in Atlantic Canada. We discuss this point with all of our incoming American guests and it is something that they are very in tune with..
Accommodation - Hotels, cottages, and b&b’s in Nova Scotia are often 50-70% cheaper on the nightly rate than similar accommodations in high-demand U.S. destinations like Main and New Hampshire. That is without the exchange rate!
Food & Dining - Fresh seafood, farm-to-table experiences, no high-volume chain restaurants and world-class dining are available at significantly lower prices than in major American cities. Just ask Frommers travel, they agree.
Activities: From whale watching to hiking in national parks, the cost of outdoor adventures in Atlantic Canada is significantly lower than comparable experiences in the U.S.
Add this to the exchange rate savings and voila - tourism dollars are becoming a bit of a one-way street to the North East.
The Post-Covid Marketing Move
It was a different time. We couldn’t leave the country, now we are simply choosing not to.
Many Canadians ventured out to the East Coast for the first time out of necessity during the pandemic. Then they fell in love. They have been back every year since and spread the good word of how life on Canada’s East Coast just hits right.
Nova Scotia is spending millions on promoting the provincial tourism market both nationally and internationally and PEI appears to be going just as deep, recently becoming the official tourism partner of the NHL and spending millions to promote its already legendary hospitality, beaches and serenity.
Covid was the spring board, but now is the time to hit the nerve of ready-to-book Canadian vacationers and the Atlantic tourism boards know it. As operators, we have a real partnership with the provinces here.
Atlantic Canada’s New Geographical Advantages
Yes, the region is known for its rugged coastlines, pristine beaches, scenic drives, and untouched wilderness. Iconic experiences like The Cabot Trail and Fundy National Park have always been there, but this is a different type of geographical advantage - we are within a days drive of the economic and most congested part of the country, Southern Ontario.
With a Canada-first sentiment afoot, folks from Southern Ontario really have limited options as to where to drive for vacation. It’s a shorter drive to the East Coast than it is to Thunder Bay. It’s a 3 day drive to Alberta and a 4 day drive to BC. And have you checked the prices in Muskoka??? Not many families have a budget that fits that location any longer.
So they look East …
And with plenty of significant Canadian cultural stops to be made along the way, Atlantic Canada road trips are back in full force, baby.
And it will last
This whole ‘movement’ will have longevity. You can screenshot this with plans of throwing it back in my face at some later date, but it wont happen, I assure you. You know why? Because once you travel to Atlantic Canada once - you will want to return time and time again. We know, because we hear it from every single traveller we house.
It doesn’t matter where they are from - Canada, the US, Europe - they all say the same thing and plenty of them decide to invest and buy here after only one visit. Those who don’t buy, they book. Quite often on the spot for their next vacation. It’s a real thing. Our goal is about 10% Y/Y for repeat guests, but I only see that number climbing after this latest wave.
Atlantic Canada forces you to fall in love, so bring on all of those new tourists, they will become repeat guests year after year. You have my personal guarantee on this one.
Final Thoughts
As unforeseen as it may have been, all of this beef with our Southern neighbours has only served to further beef up the demand for great vacation properties here on the Eastern Coast.
It’s magical combination of sentiment, cost and circumstance.
No matter how we got here or where things may be headed politically in the future, Atlantic Canada has quickly become the premium destination for Canadian travellers seeking authenticity at a palatable price. This new found feeling and information will never go away.
Thanks Donald.
