Navigating the US Tariff Situation as a PEI Tourism Operator
As an Island tourism operator, you already know this industry is not for the faint of heart! It demands resilience, flexibility, and creativity.
We’ve faced challenges before, and with the newly imposed tariffs introduced by the Trump administration on March 4th, we must once again adapt.
Rest assured, TIAPEI, in partnership with the Tourism Industry Association of Canada (TIAC) and its provincial and national tourism partners, is working hard to protect PEI’s and Canada’s tourism industry, ensuring it remains strong, competitive, and resilient.
The Situation
The US and Canada are each other’s primary sources of tourists, with US visitors accounting for over 70% of international tourists to Canada. A projected 10% drop in travel could mean 1.5 million fewer US visitors to Canadian destinations.
Fortunately for PEI, our key markets remain primarily domestic, which may help minimize the impact locally. However, we’re already seeing growing tensions between Canadian and American travelers. We understand this situation can feel overwhelming, but please know that TIAPEI is here to support you. We are actively advocating for both PEI’s and Canada’s tourism industry and working hard to find solutions on your behalf.
“At TIAPEI, we are committed to advocating for policies that support our operators and ensure PEI remains a welcoming and accessible destination for American visitors. Tourism is a key driver of our Island’s economy, and we encourage support for our industry to sustain jobs, businesses, and communities.
We will continue working with partners to mitigate challenges and promote PEI as the friendly, world-class destination it has always been.” – Corryn Clemence, CEO of TIAPEI
What TIAPEI is Doing
Together with TIAC and our industry partners, we will continue advocating for policy measures that support tourism operators and push for meaningful, targeted assistance.
We will also use our platform and resources to:
Highlight the Role of Tourism in Economic Growth
TIAPEI has been actively championing the tourism industry through targeted media campaigns designed to highlight its vital role in PEI’s economy. Utilizing social media, digital marketing, TV, radio, and out-of-home initiatives, we’ve worked hard to inform both Islanders and government leaders that investing in tourism is investing in the province’s future. As we move forward, our efforts will continue, with a fresh focus on encouraging staycations, supporting local businesses, and extending a warm welcome to American visitors.
We will continue to emphasize to decision-makers and Islanders that tourism is more than just an industry. Tourism is one of our largest sectors and exports, contributing significantly to employment and economic growth on Prince Edward Island.
Tourism fuels our economy, creates provincial tax revenues to fund essential services, supports local businesses, and allows us to share our Island’s story with the world.
Amplify the Importance of Tourism Marketing and Industry Support
Now is not the time to slow down. We will continue advocating for strong tourism marketing efforts at both the provincial and national levels to maintain visibility and competitiveness. Cutting back on marketing now would risk losing valuable momentum and make recovery more challenging.
Continued investment in promoting PEI and Canada as top-tier destinations will not only sustain our industry but also set the stage for future growth.
Embrace Domestic Travel While Welcoming US Visitors
While we hope these new tariffs won’t deter American visitors, we will embrace domestic travel, just as we did during the post-COVID recovery.
At the same time, we want to make it clear that PEI is open for US business—we are ready to welcome American visitors and travelers from around the world with open arms. TIAPEI will continue advocating for strong marketing efforts, and we encourage you to continue your marketing efforts.
Build Awareness and Encourage Local and National Support
We encourage Islanders and all Canadians to support local and Canadian tourism businesses whenever possible. Everyone plays a role in sustaining our industry by choosing to travel within PEI and across Canada.
We will also emphasize the importance of upholding our Island and Canadian values and maintaining positive relationships with our US visitors.
What You Can Do
In addition to the actions we’re encouraging Islanders to take, there are several steps you, as business owners and tourism operators, can take to address the tariff situation and economic challenges.
Share Your Voice
Use social media to share positive messages about the key role tourism plays in PEI and our local communities.
Consider writing an opinion piece for your local newspaper highlighting how the tariffs impact tourism, the local economy, and workers’ livelihoods.
Let’s ensure our advocacy for tourism remains positive and respectful, fostering strong relationships with all visitors, including our friends and neighbours in the US. By focusing on the benefits of tourism in a collaborative and welcoming way, we can support our industry while maintaining goodwill.
Looking Ahead
By combining these actions with positive Island and Canadian industry messaging, our tourism sector can push forward against the impact of these tariffs and help protect the future of our industry.
For more information on how TIAC is responding to this trade situation, explore resources on the Tourism Industry Association of Canada website.
We’re here to help!
If you have any questions or need further support, please reach out to a member of our team.
And for further insights on the impacts of the tariffs, join us on Industry Partner Day.
Register at tiapei.ca/industry-partner-day