In a significant shift in travel patterns, Canadians are increasingly opting for South American destinations over traditional U.S. hotspots, according to WestJet Airlines. This change comes amid growing tensions in U.S.-Canada trade relations and changing consumer sentiments.

A Decline in U.S. Travel Among Canadians

WestJet Airlines has observed a marked decline in Canadian travel to the United States. The airline attributes this trend to multiple factors, including economic policies, tariffs, and shifting consumer preferences. According to estimates, a 10% drop in Canadian visits to the U.S. could cost the American economy $2.1 billion and lead to the loss of approximately 14,000 jobs.

Alex Cruz, Vice Chair of WestJet, noted during a recent CNBC interview that Canadians are reacting to ongoing trade disputes by altering their travel plans. "What we are seeing is people changing their destinations. It’s no longer Phoenix or Florida. It’s the Dominican Republic, Jamaica, and Mexico," said Cruz. He emphasized that while Canadians continue to prioritize travel, they are increasingly selecting destinations outside of the U.S.

The Impact of Trade Tensions on Travel

The cooling of U.S.-Canada relations has played a role in this trend. The fluctuating 25% tariff imposed on Canadian goods, along with controversial political remarks, has led many Canadians to rethink their spending habits—including travel. Additionally, reports suggest that Canadian consumers are boycotting U.S. goods and services, further underscoring the changing dynamics between the two countries.

The shift is also evident in border traffic data. The U.S. Customs and Border Protection agency reported a significant drop in passenger vehicle crossings from Canada, with numbers in February 2025 falling by nearly half a million compared to the same period in 2024. This marks the lowest monthly total since April 2022.

A Boon for Sun Destinations

While the U.S. tourism industry may experience losses, other travel markets are seeing gains. WestJet confirms an increase in bookings to Mexico, the Caribbean, and other South American locations. The airline is strategically aligning itself with this shift by expanding offerings to these high-demand regions.

Market research firms are also noting this changing sentiment. Amir Eylon, CEO of Longwoods International, stated, "We’re already seeing the first signs that Canadian sentiment toward the U.S. is changing in a not-so-positive way. Bookings from Canada to the U.S. are down."

This trend is also affecting popular U.S. tourist destinations. Shirley Horn, a board member of the Highway 120 Chamber of Commerce near Yosemite National Park, has observed a decline in Canadian visitors. "International visitors would usually book well in advance. Now, we’re seeing the impact of tariffs—Canadians are making a statement."

What This Means for Canadian Snowbirds

For Canadian snowbirds who traditionally seek warm-weather escapes in Florida, Arizona, and California, the appeal of destinations like Mexico and the Dominican Republic is growing. Lower costs, favorable exchange rates, and welcoming policies in these locations make them attractive alternatives.

As Canadian travelers rethink their options, Snowbirds Realty is here to help navigate this evolving landscape. Whether you're considering a winter getaway or investing in property abroad, we're ready to assist you in finding the perfect location.

Stay tuned for more updates on how travel trends are shaping the real estate market for Canadians abroad.