Amid ‘Buy Canadian’ surge, should travel at home get you a tax credit? - National | Globalnews.ca (2025)

New data shows fewer Canadians are visiting the U.S. compared to last year, but unlike during the COVID-19 pandemic, there aren’t any incentives like “staycation” tax credits to spur travel at home.

Is now the time to bring them back?

“What we’re seeing is really a reflection of how people are feeling, and we’re encouraged by the renewed sense and commitment to Canadian destinations,” said Amy Butcher, vice-president of stakeholder relations and engagement for the Tourism Industry Association of Canada.

Butcher said they’ve been hearing from members about increased bookings to various Canadian locations compared to this time in 2024, adding that there’s been a “new sort of focus on national pride” in travel plans.

While specific data may not be available just yet on how many Canadians are investing in trips within the country, Statistics Canada data published Thursday showed the number of people visiting their southern neighbours has declined.

The number of return trips by car from the U.S. hit 1.5 million in March, a decrease of 31.9 per cent compared to the year prior, while return trips by air dropped 13.5 per cent year-over-year to 719,500.

Kristine Geary, owner and founder of travel group Maple Leaf Tours, told Global News she’s seen that decline first-hand.

She said her business has seen a decline of about 70 to 80 per cent in U.S. travel bookings.

“A destination like New York, where I had tours going monthly, sold out, are all cancelled,” she said.

“There’s a huge, huge trend in cancelling tours and not even deferring them.”

Despite the drop in business to the U.S., Geary said when customers cancel, she offers various Canadian locations instead, such as the Charlevoix region or Eastern Townships of Quebec or a trip to Tofino, B.C., or Newfoundland and Labrador.

She said her planned tour to the Charlevoix and Saguenay region in June is sold out, adding that as more travellers avoid the U.S., it could “catapult” many into exploring parts of Canada instead.

“I think it’ll just perpetuate more and more travel into Canada, and I think it’s a super exciting time to be in travel, not travel going to the States, but travel into Canada,” Geary said.

Some tourism industry officials suggest incentives such as a “staycation” tax credit could help boost local travel even more.

“Tax credit policy and encouragement for people to explore their country through the use of some level of incentivization and promotion program could definitely help move economic value across the country,” said Darren Reeder, president and CEO of the Tourism Industry Association of Alberta.

When the COVID-19 pandemic eased in 2022, the Ontario government unveiled a “staycation” credit, giving residents the chance to be reimbursed 20 per cent of the cost of their stay at in-province accommodations.

Similar programs in other provinces, like a two-week incentive in Manitoba during the summer of 2021, showed signs of early success.

Yet few provincial politicians nor federal leaders on the campaign trail have made substantial announcements focused on incentivizing tourism at home during the trade war.

Liberal Leader Mark Carney announced free national park entry this summer if elected, though the party did not respond to emails by publication time on whether it had further tourism plans or if it would support staycation tax credits.

The NDP have not announced tourism-specific policies so far, however, a spokesperson for the party referred Global News to its announcement to protect cultural sectors from being sold off or exploited by foreign interests when asked about support for domestic tourism.

The official said it would include Canadian arts, museums and heritage sites.

The Conservatives did not respond to emails about support for tourism or staycation incentives.

Reeder said any action should focus on off-peak months, not just summer.

“With potentially rising input costs, all of that can help reduce some of the hard edges for businesses trying to find the cash flow in the slower months of the year,” he said.

Geary added that apprehension over the consistently changing economic landscape due to Trump’s tariffs may have people waiting to make any plans.

“People aren’t jumping into making holiday plans yet,” Geary said. “I think you’ve got a lot of hesitation and anxiety. Again, it comes back to that, ‘Will I have a job?'”

Butcher, however, says that amid the surge in support for Canadian businesses and the country, it likely won’t take much to spur many to want to travel within Canada’s borders.

“I think what we’ve seen is that Canadians are ready to support their communities, Canadians are ready to choose local, Canadians are really ready to discover Canada as a country,” she said.