Small businesses fear summer tourism hit from Canada-U.S. trade dispute

A majority of small businesses are concerned the ongoing trade dispute between Canada and the United States could impact their summer tourism season, according to new survey results from the Canadian Federation of Independent Business (CFIB).

The organization says nearly 60 percent of small business owners expect some level of disruption this summer, especially in regions that rely heavily on tourism. Many are seeing changes in traveller behaviour, including fewer American visitors and Canadian tourists opting for more affordable options.

“For many businesses, summer is a make-or-break season,” said Louis-Philippe Gauthier, CFIB’s vice-president for the Atlantic region. “Tourism operators in particular count on summer revenues to get ahead of their debt and high costs.”

About 40 percent of businesses expect revenues to stay the same as last year, while others are evenly split between predicting higher or lower sales. Roughly a third have already noticed consumer behaviour shifting, including increased interest from Canadian travellers and more careful spending.

A CFIB poll found that 10 percent of Canadians have cancelled trips to the U.S. for business, and 22 percent cancelled personal travel. Among those still finalizing plans, most are looking to stay within their province or elsewhere in Canada, with just 11 percent saying they plan to visit the U.S.

The CFIB says this creates an opportunity for local tourism operators if Canadians choose to travel within the country. “Hopefully, we can convince them to travel at home and to buy from Canadian small businesses,” Gauthier said.

To help, the CFIB is urging all levels of government to reduce red tape for tourism operators and actively promote local travel. The organization also emphasizes the impact of consumer choices — noting that for every dollar spent at a small business, about 66 cents stays in the local economy, compared to just 11 cents when spent at large multinational retailers.

In Atlantic Canada, where tourism is a major economic driver, Gauthier says the stakes are especially high. “There’s a substantial number of Canadians who haven’t finalized their travel plans yet,” he said. “If they stay local, that could make a real difference for small businesses in the region.”