Tourists from Canada refrain from traveling to NYC due to escalating tensions under Trump's administration
In the heart of summer, the tourism industry in New York is facing a significant downturn, as stated by U.S. Senate Minority Leader Chuck Schumer. He decried the effects of President Trump's trade war on the state's tourism sector, particularly in Upstate New York.
The trade war with Canada, a key tourism market for the state, has led to a decrease in border crossings. In July, there were nearly 500,000 fewer border crossings than usual, a 22% decrease from the previous year. This drop is particularly concerning as it marks the peak tourism season.
Canadian tourists are responsible for 35% to 40% of Western New York's tourism revenue. However, the tariffs imposed by the U.S. have worsened an already unfavourable exchange rate between Canada and the U.S., making travel to New York more expensive for Canadians. As a result, many Canadians are considering vacationing within Canada instead of New York.
The increased costs are not limited to tourism. The cost of raw materials for agriculture and production in New York has risen significantly due to new import tariffs. This has led to higher costs for businesses in Upstate New York, causing a ripple effect that is impacting Main Streets across the region.
Schumer has been vocal about the challenges faced by Upstate NY's Main Streets due to Trump's tariffs. He stated that these tariffs have driven away Canadian friends, crushing the summer tourism industry.
Despite these challenges, New York is experiencing economic effects less severe than the country as a whole. The state's hotel occupancy was flat compared to last July, while the average daily rate was up 4%. However, the U.S. as a whole saw a 1% drop in hotel occupancy, with the average daily rate remaining flat.
The Pew Research Center conducted a survey in July, finding that only 34% of Canadians have a favourable opinion of the U.S., a historic low. Furthermore, 59% of Canadians view the U.S. as their largest threat, and 77% view the U.S. as a threat to Canada's economy.
The current governor of New York, Kathy Hochul, has not yet commented on the trade war's impact on the state's tourism industry. However, New York City is expecting a 10% dip in Canadian visitors, which could have significant implications for the city's economy.
In conclusion, the trade war with Canada is having a noticeable impact on New York's tourism industry. The increased costs and unfavourable exchange rate are causing Canadians to reconsider their travel plans, leading to a decrease in border crossings and revenue for the state. As the trade war continues, it remains to be seen how New York will navigate these economic challenges.
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