Amid ‘Buy Canadian’ surge, should travel at home get you a tax credit?

Canadians are looking within their borders to travel, but some say governments making travel tax credits available could spur even more trips.

New data shows fewer Canadians are visiting the U.S. compared to last year, but unlike during the COVID-19 pandemic, there aren’t any incentives like “staycation” tax credits to spur travel at home.

Is now the time to bring them back?

“What we’re seeing is really a reflection of how people are feeling, and we’re encouraged by the renewed sense and commitment to Canadian destinations,” said Amy Butcher, vice-president of stakeholder relations and engagement for the Tourism Industry Association of Canada.

Butcher said they’ve been hearing from members about increased bookings to various Canadian locations compared to this time in 2024, adding that there’s been a “new sort of focus on national pride” in travel plans.

While specific data may not be available just yet on how many Canadians are investing in trips within the country, Statistics Canada data published Thursday showed the number of people visiting their southern neighbours has declined.

The number of return trips by car from the U.S. hit 1.5 million in March, a decrease of 31.9 per cent compared to the year prior, while return trips by air dropped 13.5 per cent year-over-year to 719,500.

Kristine Geary, owner and founder of travel group Maple Leaf Tours, told Global News she’s seen that decline first-hand.

She said her business has seen a decline of about 70 to 80 per cent in U.S. travel bookings.