Could new tariffs hamper tourism momentum?

Buffalo, NY (WBEN) The latest threats of tariffs by both the US and Canada are worrying tourism leaders, just as they say, Canadians are making their way back across the border.

"We've started to see a little bit of an uptick," says Patrick Kaler of Visit Buffalo. "The cross-border we're still down compared to 2024 by 11 percent through the month of July. What is hurting us mostly are the Canadian day trips because our Erie County hotel occupancy through the year through July is actually up 7.8 percent year over year. So we're doing okay as far as the overnight visitation, but it's those day trips that are really hurting us."

He says Longwoods International, which is a tourism research company, they have been doing Canadian research ever since last year, and they're still finding that Canadian 49% of Canadians still do plan to travel to the United States, which is up from 43% of April of this year, so again, starting to see some good traction coming in that way, but they are worried about U.S. policies, and only 37% feel that the USA is safe. But they also say that 91% of them also say that there is plenty to see and do in the United States, and so they really want to come, but they're not really feeling fully comfortable coming at this point.

Kaler says the threat of tariffs has him concernec. "What we were hearing from Canadians is that you know it's really about that overall sentiment to come to the United States or the sentiment coming out of Washington D.C. towards Canadians that was troubling, and so you know the talk about the 51st state, and now when you say we're going to change the name of Lake Ontario or putting on more tariffs, where we've made some nice traction, starting to see some things go in a different direction. This is going to take us a few steps backwards, I'm afraid," notes Kaler.

John Percy of Destination Niagara USA says Niagara County over the years has become less reliant on on the Canadian market because the dollar has such disparity and is in a state of flux, and the exchange rate is so high affecting their traveling over. "A lot of the Canadians do come over more for day trips than overnights into Niagara County, but that has been affected. Of course, some of our attractions get day trips, like the Aquarium and Old Fort Niagara and some other attractions, and they have seen you know a decrease in the Canadian market. On the one bright spot has been recently some research that from Longwoods International that's showing that their disdain, if you will, or whatever for the Canadian for for Americans has has fallen and softened, and there was starting to be somewhat of a return into the United States overall for travel, and now that we are seeing this spike in the trade war, now it's too early to tell if that will have a negative impact, which I'm sure it will," says Percy.

Percy does note tourism is not tariffed. "It's a sort of an intangible product, if you will. So I think the tariffs are more on a tangible product that is manufactured in either country," says Percy. "I know now one is duplicating the same tariffs, (Prime Minister Mark) Carney against the U.S. now as of today. So it's not the tariffs per se. It is just this sort of another punch to the Canadian market." He adds the grassroots patriotism in Canada really spiked in the last year and a half, and their desire to travel to the U.S. certainly softened as a result of trade wars and and and other rhetoric from the Trump administration. "I think this will resurrect that patriotism and is going to have a negative impact. I mean, it's hard to tell, but I am sure in that crystal ball that is going to have a negative impact. We'll start to see some research here very soon. I'm sure out of different research companies," adds Percy.

What do they think of President Trump's proposed name change of Lake Ontario to Lake America? "I just think that's probably just his retaliation towards any of the tariff talks. It's an easy talking point, but again, it doesn't help our overall reputation as a country, as a destination. It is not the way that I think most people feel about Canada, and so I would just hope that we can get past those types of conversations and get back to our overall friendly nature as a binational destination between Canada and the United States," says Kaler

"I think Canadians never really were cohesive in in their patriotism as a country, and like I said, in the last year and a half, you've seen a spike in that in that grassroots patriotism, and that is just another point that will be a rise. And that I don't want to say a hatred, but a disdain for America and and for the United States, and will have a negative impact, unfortunately," believes Percy..