Despite cuts, U.S. destinations remain committed to Canadian market
Two Toronto-based individuals who for years have been promoting different American destinations to the travel trade in this country are warning that the decision by American officials to slash the amount of money the U.S. government contributes to the body that promotes the United States to international travellers will almost certainly curtail travel to the United States, with the cost-cutting development coming at a time of pronounced declines in Canadian travel to the United States.
Cost-conscious American officials decided this month to lower the amount of funding the U.S. federal government provides to Brand USA from US$100 million to US$20 million for the 2026 fiscal year.
Brand USA CEO Fred Dixon said it was “disappointed” with the decision but hopes the funding will be fully restored down the road. But Dixon cautioned that the government move will force Brand USA to “significantly reorganize its resources,” and added its work since its 2010 founding has been a major boost to the American economy. He added Brand USA is continuing to lobby American officials about restoring funds.
Tensions between Washington and Ottawa have led to a marked drop in Canadian travel to the United States, with statistics just released by Ottawa showing the number of Canadians heading to the United States by plane in June was down 22% from the same month last year, while road travel fell a more pronounced 33%. It was the sixth straight month of declines.
Jerry Grymek of LMA Digital and Sana Keller of Pulse Communications and Travel Marketing both say that the cost-cutting will definitely be detrimental to efforts by the United States to attract foreign visitors.
“Cutting the Brand USA budget will definitely have a direct negative impact on travel and tourism and specifically Canadian travel to the USA,” Keller stated. “Brand USA plays a key role in promoting US destinations internationally, including Canada. Without a strong budget to market the USA, marketing campaigns and media partnerships will be challenged, visibility of lesser-known or seasonal destinations that rely on Canadian visitors will be diminished, and at a time when travel to the US needs to be promoted from their leading source market, a cut in promotional activity can lead to reduced economic activity and impact overall visitation.”
Keller currently represents Santa Monica Travel & Tourism, Visit Myrtle Beach and Colorado Tourism in this country.
Grymek, who promotes such destinations as Philadelphia and the Florida Keys to Canadians, also said the reduced Brand USA budget is a step in the wrong direction.
“I feel that the cutting of the Brand USA budget will more affect the awareness of certain destinations that relied on Brand USA for promotional support,” he said. “From the media outreach to the trade road shows, Brand USA was pro-active with their organized missions to get everyone excited. Now, more and more destinations will have to rely less on that and it is unfortunate.”
LMA Digital and Pulse Communications, among other things, help stage road shows in this country for U.S. destinations wanting to attract Canadian tourists.
Meanwhile, another individual who carries the flag for several American destinations in this country said the places he promotes remain eager to attract Canadians, regardless of Brand USA’s financing.
“Although we do not have the foresight to determine the impact of Brand USA’s budget on future Canadian travel, we can confirm that our USA destinations that we represent remain 100% committed to the Canadian market,” Corey Marshall of Canuckiwi added. “Those include Travel Nevada, Visit Utah, Visit Seattle, North Lake Tahoe, Travel Oregon who continue to invest as we move into new fiscal years.”
