Potential Impacts of Tariffs on Travel from Canada to Las Vegas, According to the U.S. Travel Association
Revamped Article:
Title: Trade Wars Impact: Las Vegas Casinos, Tourism Hit by U.S.-Canadian Tariffs
Turns out, that tiff between the U.S. and Canada over trade tariffs could take a toll on Sin City. The U.S. Travel Association raised the red flag on Monday, warning about potential drops in retail and hospitality revenue in top tourist destinations, including Las Vegas.
And guess which countries are the top tourists in Las Vegas? Canada and Mexico according to the Las Vegas Convention and Visitors Authority. Holler at Buck Wargo for the deets!
Last year saw 817,221 Canadians touch down in Las Vegas via Harry Reid International Airport, accounting for half of all international visitors—50.6% to be precise. Mexico wasn't far behind with 330,044—nearly a quarter of the total, or 20.4%.
The U.S. Travel Association didn't mention Mexico in its statement, as President Donald Trump already halted a 25% tariff on that neighboring country. But Canada? Well, the president paused the tariffs there too. Shout out to Canada and Mexico for agreeing to up the ante on border security to curb the flow of fentanyl into the U.S.
While China brings in the fourth-highest number of Asian tourists to the U.S., their impact on U.S. tourism hasn't been as devastating as Canada's. They slapped an additional 10% tariff on Chinese goods, but despite the pandemic, Chinese tourists still flocked to the U.S. in droves, totaling 1.1 million in 2023.
Prime Minister Justin Trudeau? He encouraged Canadians to spend their cash on Canadian goods and services, likening a Canadian vacation to an adventure through the country's breathtaking landscapes, historical landmarks, and tourist attractions.
So, will Canadians say adiós to their American vacay dreams? Corey Padveen, a partner with t2 Marketing International, doesn't think Canadians will forego their American travel plans for the sake of patriotism. Instead, they'll steer clear of American products.
However, the strengthening of the American dollar against the Canadian dollar? That's a different story. With the value of the Canadian dollar dipping, travel to the U.S. suddenly feels a whole lot pricier. A $500 gambling budget now means shelling out an extra $250 due to the exchange rate.
"The concern isn't about tariffs or a trade war—it's about the impact on the economy with the threats of tariffs and a trade war," Padveen says. "The Canadian dollar over the past few months compared to the U.S dollar has taken a beating. It hasn't affected existing travel plans, but future ones are at stake. Right now, the Canadian dollar is trading at around $1.43 to $1 U.S. That's a near 50% increase in the cost of your travel, and in Vegas, where it's all about spending and playing the odds, that means a $500 gambling budget now feels more like $750."
So, Canadians thinking of vacationing south of the border? They might want to rethink that Miami beach trip and head to Central or South America instead, where the Canadian dollar will stretch farther. And let's not forget our Scottish pals across the pond, who've been through their own trade war brouhaha. They'll vouch for the fact that a strong dollar means fewer tourists coming for a visit.
In conclusion, the proposed tariffs and ensuing trade disputes could mean a steep decline in Canadian tourism and investment in the U.S. economy, with potentially devastating effects on industries like commercial casinos in Las Vegas. The U.S. may want to prioritize diversifying its tourism base to offset the challenges posed by international trade spats. Keep your eyes on this one, folks—it's shaping up to be quite the rollercoaster ride!
- The potential drops in retail and hospitality revenue in top tourist destinations, including Las Vegas, could lead some Canadians to reconsider their lifestyle choices, with Central or South America becoming more appealing destinations for their vacations.
- The strengthening of the American dollar against the Canadian dollar might dissuade Canadians from their usual travel plans to the United States, especially for leisure activities like gambling in Las Vegas, as the exchange rate makes the costs feel significantly higher.
