I strolled along Clifton Hill in Niagara Falls last weekend, where the contrast couldn’t be more striking. While Canadian families huddled against the early spring chill, American visitors seemed noticeably thinner on the ground compared to pre-pandemic years. The iconic falls roared with their usual intensity, but nearby hotels still displayed vacancy signs—unusual for a holiday weekend that typically marks the unofficial start of the tourism season.
This scene illustrates a broader challenge facing Canada’s tourism sector in 2024, especially in border communities that have historically relied on American visitors. While domestic tourism has largely rebounded to pre-pandemic levels, cross-border travel remains stubbornly below 2019 benchmarks.
“We’re seeing uneven recovery across different tourism segments,” explains Donna Hillman, Tourism Industry Association of Canada’s economic analyst. “Weekend visitors from border states are picking up, but extended vacations from Americans are lagging about 15% behind 2019 levels.”
Statistics Canada’s latest tourism indicators show international visitors to Canada spent $1.6 billion in February 2024, marking improvement but still tracking below 2019’s comparable period by approximately 12%. The bulk of these visitors—nearly 75%—came from the United States.
The fluctuating Canadian dollar presents a complicated picture. Currently hovering around 73 cents to the US dollar, it theoretically offers Americans increased purchasing power. However, this traditional advantage is being offset by other economic pressures.
“American tourists are citing inflation concerns on both sides of the border,” notes Eric Thompson, who operates a bed and breakfast in Niagara-on-the-Lake. “They’re telling me they’re spending more on gas, food, and accommodations both at home and here, which makes them rethink longer stays.”
For many border communities from British Columbia to New Brunswick, American tourism isn’t just a seasonal boost—it’s economic oxygen. In places like Niagara Region, cross-border visitors have historically accounted for over 30% of tourism revenue, according to regional economic development reports.
The pandemic-era requirement for ArriveCAN may be gone, but residual confusion about border crossing requirements persists among potential visitors. A survey by Destination Canada found that 22% of Americans considering Canadian travel still express uncertainty about documentation requirements—despite most needing only standard identification.
“There’s a hangover effect from pandemic restrictions,” explains Michael Crockatt, President and CEO of Ottawa Tourism. “Even though most barriers are gone, perception lags reality. We’re actively combating outdated information in our marketing.”
Beyond perception issues, genuine structural changes are reshaping cross-border tourism. The surge in passport processing times in the US has slowed first-time international travelers, while staffing challenges at border crossings occasionally create bottlenecks that deter spontaneous weekend trips—historically a mainstay for border communities.
Catherine McLeod, owner of three souvenir shops in Victoria, BC, tells me she’s noticed another shift: “Pre-pandemic, many of our American visitors were cruise passengers making day trips. Now we’re seeing more intentional travelers staying longer but fewer impulse shoppers.”
Meanwhile, Canada’s eastern tourism hubs are witnessing uneven recovery. Quebec City reports American visitor numbers approaching 90% of 2019 levels, while Toronto still lags at around 78%, according to provincial tourism data. This disparity reflects both exchange rate sensitivity and the continuing slow recovery of business travel.
The impact extends beyond tourist-facing businesses. Lisa Raitt, former Transport Minister and current Vice-Chair of Global Investment Banking at CIBC, points out broader economic implications: “Cross-border tourism creates downstream effects throughout regional economies. When Americans visit, they’re not just booking hotel rooms—they’re supporting supply chains, local agriculture, and service industries that locals depend on year-round.”
Industry insiders point to several factors that could influence this summer’s cross-border tourism outcomes. The U.S. presidential election cycle typically suppresses some discretionary spending as economic uncertainty rises. Additionally, climate considerations are shifting travel patterns, with some Americans now viewing Canada’s relatively cooler summers as an attractive alternative to extreme heat elsewhere.
Technology is playing a dual role in this evolving landscape. Mobile apps like ArriveCAN’s successor are streamlining border processes, but social media is also amplifying both positive and negative border crossing experiences, potentially influencing travel decisions.
“One viral TikTok about a two-hour border wait can undo months of tourism promotion,” observes Martin Charlton, digital marketing director for Tourism Windsor Essex.
Looking ahead to summer 2024, Canadian border communities are adapting their strategies. Tourism associations in Niagara, Windsor, and British Columbia’s Lower Mainland are coordinating with American counterparts to develop “two-nation vacation” packages. These initiatives aim to transform the border from a barrier into a feature, encouraging visitors to experience attractions on both sides.
The Bank of Canada’s recent interest rate cut—its first since 2020—may eventually weaken the loonie, potentially making Canada more attractive to American visitors. However, economists caution that currency effects typically take months to influence consumer behavior.
“Exchange rates matter, but they’re just one factor in a complex decision matrix,” explains Avery Williams, senior economist at RBC. “Post-pandemic, we’re seeing travelers prioritize perceived safety, health infrastructure, and flexibility in cancellation policies alongside traditional considerations like cost.”
For communities like Niagara Falls, the stakes couldn’t be higher. A recent economic impact study from Niagara College estimated that tourism supports approximately one in eleven jobs across the region. While domestic visitors have helped sustain many businesses through the pandemic recovery, the higher spending patterns of international visitors—particularly Americans—remain crucial to the sector’s long-term health.
As border communities hold their breath for summer 2024, the only certainty is that cross-border tourism won’t look exactly like it did in 2019. The communities that thrive will be those that adapt to new traveler preferences while addressing the practical and perceptual barriers that continue to influence cross-border movement in this post-pandemic landscape.
