In midst of tariff war, Canadians are being courted

It’s all hands on deck as stakeholders ranging from local business owners in Old Orchard Beach to the Maine Office of Tourism respond to news that Canadians may boycott trips this summer to the state in general and the seaside community in particular.

The hospitality industry is apprehensive after President Donald Trump announced earlier this month that 25% tariffs would be tacked on to goods imported from Canada.

The Old Orchard Beach Chamber Board of Directors and Maine Tourist Association said they have strategies in place following the news that Canadian Prime Minister Justin Trudeau said residents of his country will respond to a tariff war with the U.S. “in their own ways.”

"This is a trade war," Trudeau said in a March 5 article by Maine Public. "Canadians are hurt. Canadians are angry. We're going to choose to not go on vacation in Florida or Old Orchard Beach or wherever.”

Canadian citizens make up between 30-40 percent of mostly seasonal visitors to Old Orchard Beach, according to Chamber of Commerce Executive Director Kim Howard, referencing a survey conducted of business owners in 2023.

Some of the approximately 200 Chamber members have received cancellations, mostly from Canadians, she said, mainly at hotels and campgrounds. Howard does not yet have specific numbers because events are unfolding in real time, but expects to get a better handle on them.

To complicate matters, the Canadian dollar is really weak now, Howard said.

Business owners respond

Canadians are still making reservations to stay at his resort properties, said Fred Kennedy, who owns Alouette Beach Resort, Beach Walk Oceanfront Inn, and Neptune Beach Hotel and Suites along with his wife, Anne Kennedy. The Kennedys are also represented on the OOB Chamber executive board.

“We don't know if they’re not coming," Fred Kennedy pointed out during a March 19 interview. He said no one knows “how many people are not picking up the phone and not making reservations” since Trump announced the tariffs about six weeks ago.

“We’re still taking reservations from Canada,” Kennedy said. “At the same rate, it’s hard to say right now.”

Lisa Kidd and her partner, Deb Dolan, could suffer from a domino effect as the proprietors of Ocean Park Subs and Grocery and gift shop Cottage Designs. This year the couple is adding to their holdings by opening a book and acai bowl store in the space between the sub shop and the gift shop.

“It’s uncertain what is going to happen,” Kidd said. “Canadian folks spend money at gift shops.”

Kidd said she’s hearing locally that cottage rentals which were canceled are being filled up by Americans.

But more concerning, Kidd said, is the sense that Canadians “in some way feel a certain way about us now. Even beyond financially, people feel they can’t come.”

“After what might happen here and then going back, they (could be) ashamed they went to America and spent money here,” a sentiment she’s heard from two Canadians through her business.

“That’s really sad. Maine is a friend of Canada and Canada is a friend of Maine”, Kidd said. “We’re immediate neighbors.”

Chamber’s plan of action

“It’s definitely uncertain out there now,” Howard said. “It’s all industries that seem to be impacting, not just tourism.”

The OOB Chamber has begun a proactive outreach campaign to entice visitors to return by “marketing Old Orchard Beach as a destiny more and in different ways,” Howard said on March 13, and spending more on advertising, with special promotions “to entice Canadians and beyond.”

To that end, Chamber member Strategic Digital Marketing was hired to focus on digital advertising on platforms such as Google and social media, a new strategy the chamber has not pursued before.

Rob Labelle, principal of Strategic Digital Marketing, said as an agency focusing on tourism and hospitality, “We understand what the goals are and target the market to help with offsetting the possibility of having fewer Canadian visitors this year.

“We're gonna let the data drive the campaign,” Labelle said, pulling numbers from “a number of sources and entities.”

Digital advertising will allow him to see in real time who is engaging, he said, adding that there are also lessons from the pandemic year that can be employed.

“We’re definitely going to look at Mainers as well,” Labelle said.

In addition, “We’re going to do a little bit of what Mainers do – ask our neighbors for help.”

He said there is “a huge drive” to the area from all over New England, and noted that direct flights from other states have been added to the Portland International Airport’s schedule.

“There are layers,” Howard said. “We’re definitely looking at other roads we can go down.”

When asked about initiatives to draw local, state and regional visitors, Howard said that will be tied to the digital advertising campaign and marketing Old Orchard Beach as a staycation destination.

“Everybody is looking at everything,” Howard said, but nothing specific has jumped out yet. “That’s why we’re looking at all these things to make up the numbers.”

The chamber has begun discussing the challenge with Old Orchard Beach town officials. Howard also contacted other Maine Chambers of Commerce, the Maine Tourism Association and the Maine Office of Tourism, which is under the umbrella of the Maine Department of Economic and Community Development.

The state steps up

Maureen Terry, communications spokesperson for the MOECD, said her office tracks visitation, tourism expenditures and Maine visitor profiles, but it involves “hard metrics to measure (data) for OOB.”

According to the available data from MOECD, 5% – or 189,800 – of around 3.8 million visitors to Maine beaches in 2023 were our neighbors to the north.

Additional numbers show that more than half a million Canadians visited the Pine Tree State last year and the vast majority of Canadian tourists who visit Maine are repeat visitors — many of whom have traveled here more than 10 times.

“We’re trying to get the word out,” Howard concurred, saying, “We're here and welcoming Canadian families that have been coming up here for 20 to 30 years.”

Terry said her department has been proactive by meeting via Zoom about the issue with business interests from around the state that represent skiing, boating, camping, beach areas and other hospitality industries.

“It’s tough and we’re not leaving anyone out,” Terry said, adding that someone from MOECD visited Toronto a couple weeks ago and a visit to Montreal is also in the works. 

Terry said she’s giving everyone the same message: “We don’t want our Canadian visitors to go away; we love them and are doing our best to keep going with marketing efforts.”

Ann Fisher is a freelance journalist based in Saco. She can be reached at 432-7483.