FROLITICKS

Satirical commentary on Canadian and American current political issues

Economic Impact of Current Decline of Canadian Tourists to U.S.

Few people really understand the importance of tourism on their economy, in particular with respect to employment, revenue and taxes.  The Gross Domestic Product (GDP) contribution of tourism to the U.S. economy went from $2.36 trillion in 2023 to $2.5 trillion in 2024.  In 2024, this represented about 9% of the U.S. economy.  By 2034, the industry estimates that tourism will continue to grow to represent almost a 10th of the country’s total GDP.  Total direct and indirect U.S. employment related to tourism is estimated at more than 20 million people, close to 10% of the labour force.  Many work in the accommodation, food services and travel sectors.  This compares with the manufacturing proportion of the labour force at 7.5% in 2024, representing about 13 million workers.

However, 2025 has so far seen a serious decline in the number of Canadian tourists visiting the U.S., largely due to the political and economic policies of the Trump administration which placed tariffs on a number of Canadian exports.  Let’s also not forget Trump’s assertions that Canada should become the 51RST state which angered a large number of Canadians.  In addition, tourism to the U.S. is already stressed by the continuing high exchange rate versus other currencies, including the Canadian dollar.  This decline is particularly pronounced in specific segments, with Canadian overnight land trips falling by 26%, indicating regional tensions affecting traditional travel corridors.  As a result of bordering with the U.S., there has always been a significant amount of travel between the two countries, most notably within the northern U.S. states which rely most heavily on Canadian tourists.

The World Travel & Tourism Council’s projection of a $12.5 billion loss in international visitor spending represents the most significant challenge facing the sector.  This decline affects not only major metropolitan areas but also rural communities that depend on tourism revenue for economic sustainability.  The most significant drop has been in Canadian visitation which has seen a 20.2 % decline so far this year.  In 2024, Canada had maintained its position as the leading source market with over 20 million visitors.  However, Canadian visitors returning from the U.S. by land plunged 31.9% year-over-year in March 2025, while air arrivals fell 13.5%.  In general, the tourism landscape in America during 2025 presents a complex narrative of recovery and decline. The projected annual loss of $12.5 billion in overall international visitor spending represents more than just statistical data — it reflects a fundamental shift in global travel patterns that directly impacts communities, businesses, and employment across the nation.

In both the U.S. and Canada, tourism is an important expanding sector, representing more employment potential than even in the manufacturing sector.  This fact appears to be something loss on members of the Trump administration, who fail to see the negative impact of their trade relations on this sector.  It’s difficult to say when a turnaround might occur with respect to Canadian tourists, particularly since governments and businesses in Canada are greatly promoting the idea that Canadians should travel and vacation in Canada.  In addition, Canada is currently promoting international visits by persons from other countries to Canada in lieu of visiting the U.S.  Since Canadians were number one in terms of visitors to the U.S. in the past, unfortunately there is little doubt that American tourism businesses are now feeling the direct impact of this decline.  Again and again, our southern neighbours, particularly in border states, have expressed their disappointment.  They have also expressed their understanding as to why more Canadians are holding off on visiting their country, given the current policies of the Trump administration.  All in all, the whole situation is truly regretful given the traditional, friendly and close relationship between the two countries and its peoples.

Leave a comment »

When Will We Stop Young Men From Going To War?

Years ago, I read somewhere that old men begin wars and send young men to fight them.  This was certainly true of the multitude of wars fought during the Twentieth Century.  Today, it would appear that nothing has really changed.  Look around the world, and you cannot help to witness the continuing atrocities caused by wars and the loss of not only young soldiers, but also, and most importantly, the loss of civilian lives.  There is no need to once again recount the statistical losses of war, for what matters most is the real human suffering that one sees among the individuals and families affected by war.

I had family members who fought in both World Wars, and gratefully had survived to return.  Born shortly after WWII, I lived through the Cold War period and the West’s battles with the then Soviet Union.  I lived through the break up of the Soviet Union in 1991 and the subsequent struggles of East European countries for independence.  I lived through the Vietnam conflict, which one must remember like the earlier Korean conflict, was never officially declared a war by Congress. Then came the U.S.-led invasion of Iraq in 2003 toppling the long time dictator Saddam Hussein and leading to the subsequent decade occupation of Iraq.  Fortunately, the then Prime Minister Jean Chrétien refused to send Canadian troops to fight in Iraq.  However, Canada did join the NATO mission in Afghanistan where in over ten years of fighting, Canadian combatants loss their lives and several were seriously injured.  With the war in Afghanistan going poorly and in light of the gains being made by the Taliban, the U.S. couldn’t wait to get out of that country, much in the same way the Vietnam conflict ended.  And for what?

Now, we have the Ukrainian-Russian war being initiated by 73 year old Vladimir Putin, a former KGB foreign intelligence officer for 16 years and de facto dictator of Russia since 2000.  To date, while supplying Ukraine with weapons and financial support, no NATO country has boots on the ground in Ukraine.  However, there is little doubt that NATO’s European countries are deeply concerned about Russia’s incursion into Ukraine and potential future threat.  The result is that they have begun to build up their military forces and to expend a larger proportion of their budgets on defence.  Canada, as a NATO member, has also agreed to significantly increase its military spending to meet its continuing commitments to the alliance.

In the Middle East, Israel’s conflicts with Hamas in Gaza, its attacks on Iranian nuclear weapons facilities, and its most recent attack on Hamas negotiators in Qatar, represents a long period of wars and deaths and destruction on both sides.  Indeed, there have been multiple wars with Israel, including those in 2008-09, 2012, 2014, 2021 and an ongoing one since 2023, which began with the infamous October 7 attacks.  According to the Costs of War Project at Brown University, the U.S. spent almost $18 billion on military aid to Israel from October 2023 to October 2024.  While the U.S. continues to provide this massive support, do date President Trump has not indicated that American troops could become directly involved in Gaza.  Time will tell!

People in the Trump administration like to describe the president as a president for peace — this despite the recent change whereby his Secretary of Defense is now the Secretary of War.  In addition, the Trump administration is building up its military presence in the Caribbean, especially off the coast of Venezuela.  Drone attacks have been carried out on boats in international waters, with the administration declaring that these are drug smugglers originating out of Venezuela and supported by the country’s president Nicolás Maduro.  However, some current and former U.S. officials contend that the unspoken goal is the goal is to force Maduro from power.  In other words, regime change.  As of November 6th, the U.S. Senate has twice failed to pass resolutions that would limit Trump’s authority to continue military action against Venezuela or airstrikes against alleged drug vessels.  After long-running wars in Iraq and Afghanistan, the combination of the words America and regime change raises alarm bells, both inside and outside the U.S.  Let’s hope that this aging American president isn’t once again ready to sacrifice American young lives in another worthless war.

Leave a comment »