On one hand, it is a lot of revenue lost. On the other, it’s also a lot of resources freed up for Americans that would otherwise have been used by foreign tourists. As long as the supply remains the same and the demand drops, prices should get reduced as well. That’s what people understand.
What they don’t understand is that companies expect this to be temporary, and they’d rather have losses they can write off, rather than smaller profits that their investors will be upset about.
The international demand lost is well beyond what can be replaced with domestic demand. Tariffs are also going to keep prices high so even with a demand reduction that won’t matter to a lot of the supply cost.
The taxes are one thing but less profit and less demand=jobs being cut which has downstream effects. Any smart company doesn’t expect this to be short. Being advised against travel is not something that gets turned around easily.
On one hand, it is a lot of revenue lost. On the other, it’s also a lot of resources freed up for Americans that would otherwise have been used by foreign tourists. As long as the supply remains the same and the demand drops, prices should get reduced as well. That’s what people understand.
What they don’t understand is that companies expect this to be temporary, and they’d rather have losses they can write off, rather than smaller profits that their investors will be upset about.
The international demand lost is well beyond what can be replaced with domestic demand. Tariffs are also going to keep prices high so even with a demand reduction that won’t matter to a lot of the supply cost.
The taxes are one thing but less profit and less demand=jobs being cut which has downstream effects. Any smart company doesn’t expect this to be short. Being advised against travel is not something that gets turned around easily.
What resources are Canadian tourists using that would otherwise go to Americans? I don’t feel deprived of flights to Ottawa…