Michigan tourism destinations, promoters brace for Canadian backlash to tariffs
The backlash in Canada to President Donald Trump’s tariffs on the U.S. neighbor — plus his comments about the country becoming the 51st state — is starting to reach tourism-dependent businesses in Michigan.
Canadian travel agents and officials say many Canadians are canceling trips to the United States, a trend that is expected to continue into the peak summer travel season as they opt for other international destinations or stay close to home for their vacations.
Windsor Mayor Drew Dilkens said Canadians are increasingly hesitant to visit or spend money in the United States despite longstanding ties between the two countries.
“We know where we’re putting the blame, and it's on one person making the decisions,” Dilkens said. “One American. So this does not impact the way we view Americans as a whole. But I can tell you what it does impact is the way we view America right now, and the fact that most Canadians aren't all that interested in going to the U.S. to spend money.”
Dave Charlton is among Canadians opting not to travel to the United States. The Ontario resident said he used to visit Michigan six to eight times a year, but he will not be returning. He recently canceled an annual golf trip for eight to Gull Lake in Kalamazoo County.
"That was a trip we took for about 30 years except for COVID," he said. "We are going instead to a Canadian golf resort."
The number of Canadians entering Michigan began dropping in February as Trump announced a 25% tariff on imports from Canada and Mexico early that month. According to data from U.S. Customs and Border Protection, the number of travelers arriving by passenger vehicle in Michigan from Canada in February fell 15% year over year to 544,929.
At Harry’s Detroit bar near Little Caesars Arena, General Manager Hugh Leonard said he’s noticed a shift in patrons in recent weeks.
“We've seen a small decline with Canadian fans, I wouldn't say too noticeable, but it's kind of hard with us because we're very busy,” he said, adding that he’s concerned the new tensions between the United States and its northern neighbor will hurt Detroit.
According to CoStar, bookings at U.S. hotels near the Canadian border have declined, with Detroit/Dearborn showing a 4.9% drop in demand during the four-week period ending March 15, compared to last year.
Other U.S. border cities are seeing similar declines. In Niagara Falls, N.Y., bookings were down 11.8% for the four weeks ending March 15. Bookings slid 10.3% for the same period in Bellingham, Wash.
"It's a little hard to parse. There certainly is demand decline," said Jan Freitag, senior vice president of lodging insights for STR and national director of hospitality analytics for CoStar Group. "And because you're so close to the border, I would think that a part of your room demand comes from Canada, and it's not a huge leap to say they are related. But by how much, our data doesn't show."
McKenzie McMillan, a travel adviser with Vancouver-based The Travel Group, said in recent weeks he’s seen 20% to 30% of his Canadian clients cancel bookings to the United States.
“I think a lot of Canadians just were of the impression — they were partially worried about how the economy was going to look once the tariffs were in place,” he said. “But also just anger — anger primarily at the U.S. government for what was being perceived as an attack on our Canadian prosperity and well-being.”
McMillan said leisure travelers have largely shifted to other destinations, including Mexico. Mexico is typically less popular in the summer due to its rainy season, but has seen a surge in Canadian travelers choosing it. European destinations, especially Iceland and other parts of Europe, have also grown in popularity, he added.
"Canadians are flying in droves to Europe, and the Canadian dollar is even weaker against the euro than it is against the U.S. dollar,” McMillan said. Air Canada and WestJet have adjusted their routes accordingly, he said, with certain U.S. routes, such as Vancouver to Washington, D.C. and Dallas, being canceled due to low demand.
Canadians are also planning to travel more domestically, opting for destinations closer to home, he said. Michigan tourism officials? They're adjusting as best they can.
Trevor Tkach, president and CEO of Traverse City Tourism, said the organization has paused advertising in Canada after noticing there was a drop in interest in digital campaigns targeted there: “We can see how campaigns are performing, and the Canadian campaigns are not doing as well.
“So for us, it made sense to kind of pull back. We could turn it on some point, but just based on where things are, it seemed to make sense to pause on that and maybe refocus our attention on customers closer to home.”
The Mackinac Island tourism community is preparing for a travel season that begins in early May. Regarding Canadian visitors, Tim Hygh, executive director for Mackinac Island Tourism Bureau, said: “While it's too soon to determine the full impact on travel decisions, we do anticipate a possible shift in Canadian sentiment on travel to Mackinac Island this season. We are monitoring closely and expect to have a clearer picture of things once the island is in full swing later this season.”
Claude Molinari, CEO of Visit Detroit, said political tensions, tariffs and the strong U.S. dollar are headwinds against Canadian travel to the United States.
"Air traffic from Canada is still muted,” he said. “It doesn't help that the U.S. dollar is so much stronger than the Canadian dollar. But also, certainly, the political position of the federal government. This certainly doesn't help drive Canadian tourism to the United States."
Molinari acknowledges the impact of less travel from Canada to Detroit: “If we lose a significant portion of our Canadian visitors, that's a negative impact on our destination and our economy. I don't believe that's being unpatriotic. I just believe it's being factual."
Molinari said areas facing negative impacts include hotels, restaurants and sporting events. Visit Detroit advertises across Canada in Toronto, Mississauga, Ottawa and Quebec. Molinari said the nonprofit had plans to increase its marketing in Canada, but must balance those efforts with being sensitive to the current political climate.
"We don’t want to be tone-deaf to the situation,” he said. "If the situation continues to deteriorate, we’ll have to adjust our strategy accordingly."
Molinari, who says he is an optimist by nature, said he’s hopeful the situation will improve, noting the interdependence of Windsor, Essex County, and Detroit, particularly in sectors like manufacturing.
"I'm very hopeful that we’ll be able to come to a good resolution and resume what has been a very strong partnership for both destinations,” he said.
► RELATED REPORT: Windsor residents say they are already feeling effects of Trump tariffs on Canada
Dilkens, the Windsor mayor, said a lot will need to change for that to happen: “Let's travel in our own country. Let's go to Cuba or Mexico for vacation ... just avoid the United States until we're treated with more respect that we deserve.”
Dilkens said a shift in Canada-U.S. relations began when Trump was sworn in and immediately signed an executive order targeting Canada, followed by the announcement of tariffs. He pointed to what he called disrespect from the president, particularly when he called Canadian Prime Minister Justin Trudeau "governor.”
“Listen, I'm not a Justin Trudeau fan,” he said. “I'm happy he's not our prime minister anymore. But to watch the president of the United States call him governor, it’s disrespectful. But the reality is, the underlying concern that Canadians have is the ongoing threat by the president to annex Canada. This isn't just a tariff war. This is like a fight for sovereignty.”
The tensions between the United States and Canada solidified Dilkens' decision to stop funding the Windsor-Detroit Tunnel bus, a service he said was no longer financially feasible. The Windsor City Council approved the funding, but Dilkens vetoed it in February.
“Before Donald Trump, it was becoming economically unfeasible to do it,” he said. “Justin Trudeau made the service unaffordable. Donald Trump just killed it. I couldn't in my right mind support subsidizing the tunnel bus to the tune of $1.6 million a year basically to the exclusive benefit of our neighbors across the river at a time when our country is under economic threat.”
In an emailed statement, Detroit-Windsor Tunnel LLC said: "Earlier this year, the Detroit-Windsor Tunnel experienced a decline in traffic, largely due to colder temperatures and significant winter weather in January and February. While commuter traffic remains steady, discretionary travel has softened. There is no indication of a broader trend at this point, and we do not anticipate any immediate changes to operations or service levels."
Dilkens said the bus service will continue to operate its regular schedule until August and operate for special events though mid-December.
Charlton, the Ontario resident who canceled his group's annual golf trip to Michigan, also plans to vacation next winter in Costa Rica instead of Florida, where he and his family sometimes have rented a house for four weeks. His daughter lives in the United States, and during visits to see her, they would stay in Holland overnight and also make overnight trips to Detroit to dine and shop.
"I don’t know how we got here," he said. "My father worked his entire life in Detroit, my daughter is a dual citizen and lives in the States. I have aunts, uncles and cousins who are American. If they want to get together, they will have to come to Canada. We, simply put, don’t feel safe crossing the border, and that is a very disconcerting thing to have to say."
He echoes Dilkens in his feeling that a return to normalcy isn't likely any time soon: "We were once friends, and I sincerely hope we can be again. But I don’t see that happening for the next four years."
cwilliams@detroitnews.com
This article originally appeared on The Detroit News: Michigan tourism destinations, promoters brace for Canadian backlash to tariffs
