Nearly Three In Five Small Businesses Worry The U.S.-Canada Trade War Could Impact Their Summer Tourism Season

The summer tourism season is here, and 58% of small business owners are concerned the U.S.-Canada trade dispute will be disruptive, says the Canadian Federation of Independent Business (CFIB).

“For many businesses, summer is a make-or-break season. Tourism operators in particular count on summer revenues to get ahead of their debt and high costs,” said Louis-Philippe Gauthier, CFIB’s vice-president for the Atlantic region.

This year, almost 40% of businesses expect summer tourism revenue to remain the same as last year, while about equal shares expect either higher or lower revenues. New data from CFIB found that 37% of those surveyed noticed changes in tourists’ behaviour. Among those, 58% of businesses are seeing growing interest from Canadian travelers, and 37% noticed visitors choosing more affordable options for goods or services.

Cross-border travel takes a hit amid trade tensions
A public opinion poll conducted by CFIB with members of the Angus Reid Forum found that 10% of Canadians have canceled their business travel to the U.S and 22% cancelled their personal travel.

Among those who have finalized their travel plans or have yet to do so, 56% plan to travel within their province, 51% elsewhere in Canada, and 21% elsewhere in the world other than the U.S. Only 11% are travelling or looking to travel to the U.S. this summer.

“With more Canadians looking to stay within the country this summer, now is a great opportunity to explore our local businesses and communities and keep the loonies local. Every time Canadians choose to shop at a local small business, 66 cents of every dollar stays in the local economy,” Gauthier added.

To help the tourism industry, CFIB urges all three levels of government to reduce permit and licensing requirements while actively promoting buying local and travelling within and to Canada.

“The tourism sector is one of the largest employers in Canada, and most tourism operators are small businesses,” said Kalith Nanayakkara, CFIB’s senior policy analyst for B.C. “Governments and Canadians have a significant role in strengthening our economy and supporting independent local businesses. We encourage people from coast to coast to get out and explore their communities, their provinces and their country this summer to create new memories and help give small businesses a much-needed boost.”