As the U.S. tariff war evolves, Canada’s tourism industry sees massive spike

Tourism operators say it’s a record-breaking summer as Canadian and international visitors take vacations across the country. Paul Hollingsworth reports.

HALIFAX – On a hot August day with the Halifax summer season in full swing, the city’s busy waterfront offered a snapshot of the province’s tourism vibe.

“At this moment, our business is 29 per cent ahead of passenger counts based on this time last year,” said Ambassatours Gray Line CEO Sean Buckland, who added this could grow into a record year for tourism business – not just locally, but also nationally.

According to Statistics Canada, 2026 first-quarter tourism spending in Canada saw a 5.6 per cent increase year over year, with financial totals reaching $29.5 billion.

“We are having increased Americans take advantage of the Canadian dollar and we are seeing increased Canadians stay home,” said Buckland. “And we are seeing international visitors come and stay longer.”

Donna Riani and her husband are visiting Canada from Boston for the first time. Given the recent tariff tensions between the two countries, Riani said she is here to see the sites and show support to her northern neighbours.

“Well, obviously, the USA is not a friendly neighbour anymore,” Riani said. “Being here is something I wanted to do, and it is nice.”

As Americans visit Canada, Canadians continue to travel within their home country. Statistics Canada also reported domestic spending reached $23.5 billion during the first three months of 2026.

David Martel of Quebec City was tempted to travel to the United States, but ultimately decided to stay in Canada this summer.

“I figured for now I’m going to support the local markets,” Martel said.

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Canadians refusing to travel south of the border has taken a bite out of the American tourism industry.

To attract more travellers, Porter Airlines is offering 20 per cent off flights from Canadian cities to New York from August until December, while New York is tossing in cheaper hotels and deals on Broadway shows.

“Canada remains our No. 2 tourism market,” said New York City Tourism + Conventions CEO Julie Coker. “So, we are offering 30 per cent off of 85-plus tourism attractions.”

That sounded like a good deal, but Martel said, “thanks, but no thanks”.

“Maybe in a couple of years,” he said with a laugh.

For now, he will spend his vacation money in his home country, at a time with the tourism industry has surged from coast to coast to coast.

With files from CP24