The drop coincided with both the trade war and a weaker US dollar, which fell more than 5% against the ‘loonie’ in the first half of the year.
Canadians’ return trips by air from other countries rose 7.3% in June, while those from the US dropped 22%.
Tourist arrivals from the US decreased by 0.7%, and those from other countries were at similar levels to last year.
“These trends are particularly promising as ongoing US tensions appear to be influencing some global tourists to consider Canada as an alternative destination,” Anusha Arif, economist at Toronto-Dominion Bank, said in an interview.
Other indicators, including airport screening data, also showed a “significant shift” towards domestic travel among Canadians, she said.
Canada’s total tourism spending is expected to grow between 2% and 4% this year despite an anticipated 5%-10% decline in US spending, Arif said.
That’s because a strong increase in the number of Canadian and other international visitors is expected to compensate for fewer American tourists.