TIABC Voice of Tourism Newsletter – February 14, 2025

It didn’t take long for anti-American sentiment to reach a feverish pitch once Donald Trump assumed office, largely because of the trade dispute initiated by #47. Even Canadian sports fans have taken to booing the US national anthem (which has not been well received BTW) to protest impending tariffs and other head-scratching proposals by POTUS.

I’ve been asked multiple times by media about the consequences of possible tariffs and counter tariffs on the tourism industry. The short answer is it’s both an opportunity and a threat.

For example, I’m told the ramifications could include a decline in visitors that travel in recreational vehicles (RV). The cost to purchase an RV is expected to increase significantly given that most units sold in Canada are manufactured in the United States with imported Canadian steel and aluminum. Similarly, the cost of a bus ticket could also rise since parts and components to build or repair motor coach engines are largely manufactured in Canada but assembled stateside.

TIABC and several of its industry partners have been working diligently on this file over the past couple of weeks. One of the tactics to position tourism as an opportunity to bolster British Columbia’s economy, is to send a message to politicians, media, community leaders, other business associations, and relevant stakeholders via an op-ed that touts the benefits of an industry that is sustainable, creates jobs, has the potential to grow market share from new export markets, and contributes to social, cultural, environmental and economic prosperity.

To that end, we’ve created a template that you can draw from, personalize, or use as a foundation to communicate with your customers, members, media, decision-makers and relevant audiences. I encourage you to amplify the message that BC’s tourism industry is very much poised for growth in spite of the broader issues like tariffs.

Tourism Primed to Lead BC’s Economic Prosperity in Challenging Times

Tourism is one of British Columbia’s largest business sectors with a foothold in virtually every community and region in the province. In 2024, the industry generated an estimated $22 billion in revenue and a projected $9 billion in GDP, and directly employed over 154,000 people in 16,300 businesses.

Aside from the domestic market, BC’s tourism industry relies on travellers from all over the world, particularly the United States, which represents some 50% of international expenditures in the province and 75% of all visitors from other countries.

Similar to the forestry, mining and manufacturing sectors, tourism is an export industry but with one notable difference. Rather than shipping commodities abroad for customers to buy, tourism generates revenue by bringing people here from other countries to purchase BC products and renewable experiences.

As the trade dispute between Canada and the United States continues to advance, BC’s visitor economy stands side-by-side with other natural resource sectors, businesses and senior levels of government to find solutions and opportunities in the event that tariffs are implemented in March.

In a recent survey of Tourism Industry Association of BC members, 70% of respondents indicated that tariffs are somewhat or very likely to have an impact on their business or community. The prospect of a fortified border, a recessed Canadian economy, anti-American sentiment, and higher costs for goods were among the concerns cited by tourism operators and destination management organizations in every region.

Regardless, the tourism industry has a unique opportunity to help lead BC’s economic prosperity through private and public investment in shovel-ready projects that will not only generate revenue and create jobs, but will also add to the incredible experiences and world class reputation British Columbia enjoys as a must-visit destination. At the same time, we need government assistance to create a level of certainty by eliminating unnecessary regulation while also speeding up decision-making on tenures and infrastructure that helps support good paying jobs, strengthens existing businesses, fosters partnerships with Indigenous nations, reinforces environmental stewardship, and generates revenue for communities and regions throughout the province.

In the meantime, as a sector we commit to collectively reinforcing sales and promotional efforts domestically and internationally to maintain existing markets, as well as retain a strong presence in the United States to strengthen relations with millions of Americans who enjoy visiting friends, family and colleagues throughout British Columbia.

During a time of great uncertainty and fear, the tourism industry is poised to be the catalyst to drive BC’s economy forward. It is also a bridge to celebrate myriad values such as diversity, respect, dignity, and equality that we share with visitors from around the world, including our closest neighbour, the United States.

In the context of tourism and tariffs, TIABC’s messages are clear:

A. No matter their political views, we value and welcome our American friends who represent BC’s largest international visitor market.

B. Businesses, sectors, as well as community, regional and provincial destination management/marketing organizations (DMO) will continue sales and promotional efforts in the United States while also pursuing opportunities to grow market share domestically and internationally.

C. DMOs will continue to promote local and iconic experiences throughout BC to encourage residents to travel within the province and Buy BC.

D. Tourism is a catalyst for economic growth and is in the best position to quickly diversify into new export markets like India, Dubai, Taiwan, Singapore, Japan, Korea, and Brazil.

E. The Canadian dollar is low relative to the American dollar so the value for experience for US visitors is exceptional.

F. While some communities are experiencing cancellations or a decline in US visitation, others are seeing record numbers of American visitors, and bookings are trending well for the coming months.

TIABC is actively working on this file from multiple angles, including but not limited to:

A. Engagement with provincial and territorial counterparts to support TIAC on advocating for incremental government investment to bolster tourism marketing efforts in key international markets including the United States, as well as a support package should tourism significantly decline as a result of tariffs.

B. Collecting and remitting research and data to TIAC on areas such as operator sentiments vis-a-vis the impact of impending tariffs, as well as booking patterns of American and other international visitors to BC to help inform further federal advocacy initiatives.

C. Coordination of a proposed virtual roundtable with key stakeholders and decision-makers to share information, data, and strategies to mitigate the impacts of impending tariffs.

D. Media interviews, social media communication and key messages on impacts and opportunities to various audiences.

E. Liaison with the province and Premier’s Task Force to provide relevant tourism data and strategies for government investment in BC’s visitor economy.

F. Regular industry engagement such as surveys to ensure any potential issues are identified for lobbying and advocacy efforts.

In these early days it’s difficult to know the extent to which the proposed tariffs and counter tariffs will affect tourism and BC’s broader economy. Suffice it to say, we continue to monitor the daily developments and will endeavour to keep you posted on TIABC actions pertaining to this critical issue.

I bristle when people boo national anthems at sporting events, mostly because it doesn’t accomplish anything and actually creates a greater wedge. Moreover, I don’t understand anti-American sentiment over this issue since many US citizens disagree with what their president is doing in bullying a close ally. So whether it’s friends, family, colleagues or customers from the United States, they deserve to be welcomed in spite of the politics that can so easily divide us.

As Premier Eby so eloquently said to Team USA at the opening ceremonies for the Invictus Games, “It doesn’t matter what the politicians say, because if you need us, you just say the word USA, and if we ever need you, you’d be there in a second.”

It goes without saying, our tourism industry is counting on it.

Walt Judas
CEO, TIABC