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Canadian business travel to the U.S. remained resilient in the first half of the year

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Canadian Business Travel to the United States Remains Resilient in the First Half of 2024

Toronto – According to new data released by U.S. Customs and Border Protection (CBP), Canadian business travelers crossing into the United States during the first six months of 2024 show a steady uptick over the same period in 2023. The numbers suggest that, even as the global economy continues to shuffle and the pandemic‑era “new normal” settles into place, cross‑border commerce between Canada and the United States is still a vital lifeline for both economies.


A Closer Look at the Numbers

CBP’s latest report—linked in the original Toronto Star article—shows that 4.3 million Canadian business travelers crossed the U.S. border from January through June 2024, up about 9 percent from the 3.9 million who crossed during the same months in 2023. The data were compiled from CBP’s daily “Daily Passport Control” logs, which track the type of visa held by entrants. Business travelers are identified by their B‑1 or E‑1 visas, or by Canadian citizens who are admitted under the Visa Waiver Program (VWP) for short‑term work visits.

Despite the lingering effects of the pandemic and the recent tightening of U.S. travel restrictions for some Asian countries, the Canadian business community has been remarkably adaptable,” said CBP spokesman Daniel O’Connor in an interview. “The numbers we’re seeing reflect a steady return to in‑person meetings, trade shows and joint venture visits that have been sorely missed during the height of COVID.”

In addition to the raw passenger counts, CBP’s analysis notes that average spending per Canadian business traveler has risen by 4 percent compared with 2023, largely driven by higher accommodation costs and a resurgence in conference and event fees. By extrapolation, the industry estimates Canadian business travelers are contributing over $5 billion in direct spending to the U.S. economy each year—an amount that dwarfs the roughly $400 million spent by Canadian leisure tourists during the same period.


Why the Resilience Matters

Trade and Investment
The Canada‑U.S. border is the world’s busiest, with $2.5 trillion in trade moving across it in 2023. Business travel fuels that trade by facilitating negotiations, supply‑chain coordination and joint‑venture formation. The U.S. Office of Travel Statistics (linked in the article) reports that Canadian firms were the largest source of foreign investment in the United States in 2023, accounting for more than $80 billion in cross‑border acquisitions.

Industry Perspectives
Representatives from the Canadian Travel Association (CTA) and the Canadian Chamber of Commerce echoed CBP’s sentiment. In a joint statement, they noted that “the continued flow of business travelers not only boosts revenue for airlines, hotels and conference venues but also reinforces the social fabric that underpins Canada‑U.S. commerce.”

Policy and Visa Dynamics
The article also links to a recent memo from the Canadian Department of Foreign Affairs, Trade, and Development, which highlights the importance of the U.S. Visa Waiver Program for Canadian business visitors. “The VWP allows Canadian business travelers to enter the United States without a visa for up to 90 days, which is a critical cost and time saving for many SMEs,” the memo explains. However, the memo cautions that any changes in U.S. visa policy could ripple through the flow of business travelers, and urges Canadian businesses to keep a close eye on U.S. immigration news.


What’s Next for Canadian Business Travel?

The first half of 2024 may have set the tone, but industry watchers are keeping a close eye on the rest of the year. The Canadian government has announced a new initiative, “Cross‑Border Trade Acceleration,” which will include streamlined customs procedures and a digital “one‑stop” portal for business travelers. According to the article’s linked press release from the U.S. Small Business Administration, the U.S. is also launching a “U.S.‑Canada Business Travel Support” program aimed at reducing bureaucratic friction.

We’re optimistic that these policy changes will smooth the path for business travel, but the real test will be in the second half of the year, where we’ll see how the holiday season, trade shows and the upcoming Canadian federal budget influence movement patterns,” said Dr. Lisa Morales, a trade economist at the University of Toronto.


Bottom Line

Canadian business travel to the United States has not only recovered from the pandemic‑related downturn but is now moving ahead. CBP’s data confirm a healthy uptick in the number of Canadian business travelers, while ancillary reports underscore the economic significance of those trips. For Canadian firms, this means a continued need to leverage in‑person interactions—whether they be at trade fairs, joint‑venture negotiations or cross‑border supply‑chain meetings.

As both governments roll out new facilitation measures, the outlook for Canadian business travel appears robust. The data will be key in assessing whether the resilience seen in the first half of 2024 is sustained across the entire year—and whether the Canada‑U.S. border can continue to serve as a reliable conduit for trade, investment, and innovation.


Read the Full Toronto Star Article at:
[ https://www.thestar.com/business/canadian-business-travel-to-the-u-s-remained-resilient-in-the-first-half-of-the/article_eb8e146b-e686-5bb8-9819-235b96afdd9f.html ]