US Businesses Hit Hard by Decline in Canadian Tourism

US businesses are hitting hard by a decline in Canadian tourism, with double-digit drops reported at many American destinations. The decline is believed to be a result of political tensions between the two countries, particularly regarding ongoing trade disputes and "51st state" rhetoric from President Donald Trump.

Nancy Helman, Executive Director of the Virginia Beach Convention and Visitors Bureau, expressed concern over the impact on local businesses. She noted that Canadian tourists are the largest sector of international travel to Virginia Beach, generating $38 million in revenue in 2023.

"The uncertainty of running a business at the Oceanfront right now is very concerning," said Debbie Lou Hague, owner of Ocean Eddie's restaurant. "If they don't come, that's a big chunk."

John Zirkle, President of the Virginia Beach Hotel Association, remained optimistic, stating that while there is a dip in summer bookings from the Canadian market, it's too early to determine if there will be a loss. He noted that Canada has a large portion that can drive to Virginia Beach, making it an attractive destination.

Micah Desforges, Executive Producer of JACKALOPE Virginia Beach, acknowledged the challenge posed by the current political climate but emphasized the importance of building bridges and continuing to welcome Canadians. The festival, which is returning for its third year later this month, injected $8 million into the local economy with 8,000 hotel nights booked in its first year.

"We're also being proactive. We're doing additional marketing domestically. In the United States," said Helman, preparing to make up for any losses.