With new 25 per cent border taxes in place and rising uncertainty around cross-border travel, tourism leaders in Ontario are preparing for a possible uptick in domestic tourism, with destinations like northern Ontario potentially reaping the benefits, officials say.
According to Kris Puhvel, executive director of Orillia and Lake Country Tourism, early data is already showing signs of change.
“We’re already seeing some indication that there are fewer border crossings since the start of the year,” Puhvel said. “More Canadians are choosing to stay home.”
The border tax, which applies to certain purchases made across the U.S. border, has made American travel less appealing for some Canadians, he said.
But Puhvel sees a silver lining. Drawing on trends that emerged during the COVID-19 pandemic, he believes many Ontarians may once again turn to local destinations for their summer vacations.
“There could be some positive impacts on tourism, with people looking at more of a stay-cation, just like they did during the pandemic,” he said. “Those conditions are favourable for our region.”
While Canadians may be opting to stay within provincial borders, there’s growing interest from international visitors as well — especially from the United States.
“We’ve been getting quite a few inquiries, and I’ve heard from some of our partners that Americans are reaching out more than usual, looking for information,” Puhvel noted.
Factors such as ongoing political instability in parts of the U.S., a strong U.S. dollar, and the general appeal of Canada’s natural beauty are driving this trend, he explained.
“Some Americans might be looking at Canada as a destination this summer,” he said. “And if they do, we’re ready to welcome them.”
Puhvel noted that while the organization hasn’t launched a specific digital campaign targeting U.S. travellers, their existing promotional materials are already positioned to reach audiences in nearby American border states.
“We’ve always distributed our guides in those regions,” he explained. “But if interest continues to grow, we’ll certainly look at all options and adjust our strategy accordingly.”
Even as Orillia and Lake Country monitors interest from American tourists, the region’s bread and butter remains its domestic audience, Puhvel told OrilliaMatters.
“There’s this growing sense of supporting local — supporting Canadian,” Puhvel said. “It’s something that took hold during the pandemic, and I think people are still feeling that now.”
From local restaurants and artisans to small resorts and family-run attractions, the benefits of increased domestic travel are felt at every level of the regional economy. According to Puhvel, many local operators are embracing the trend and leaning into the idea that everything Ontarians need for a great vacation is already in their own backyard.
“I think you’ll see a lot more of that ‘stay and play’ messaging — encouraging people to explore their home province,” he said. “And we’ll reflect that in our own marketing as well.”
Located just 90 minutes north of Toronto, Orillia and its surrounding communities in Simcoe County offer a compelling mix of natural beauty, cultural experiences, and year-round outdoor activities, Puhvel says.
“We really shine in the summer,” he said. “Our waterways, our trails, our events —we’ve become, in many ways, the event capital of Ontario.”
Whether it’s paddling on Lake Couchiching, hiking through lush forest trails, or attending one of the many summer festivals that fill the regional calendar, Puhvel says there’s no shortage of things to see and do.
And unlike some major tourist destinations, the area offers these experiences without the overwhelming crowds, he noted.
“We have the space,” he added. “We have the opportunities to enjoy nature in a more peaceful setting.”
Puhvel says the region is also home to a growing number of high-quality resorts, boutique accommodations, and family-friendly attractions, making it an easy sell for both Ontario residents and American travellers looking for a different kind of vacation.
Beyond the summer of 2025, Puhvel believes this moment could be part of a longer-term shift in how Canadians think about travel.
“One of the big takeaways from the pandemic was that Canadians really got to know their own country. They explored it, and they enjoyed it,” he said. “Now, I think there’s a renewed desire to embrace that — to see what’s already here, close to home.”
While it’s too early to predict whether the current tariff controversy will lead to a permanent change, Puhvel sees reasons to be optimistic.
“I don’t know if it’s an ideology exactly, but there’s definitely a spirit behind it. It’s about appreciating what we have and supporting our local communities,” he said. “And as long as that spirit is there, I think tourism in regions like ours will continue to thrive.”