Why Canada tourism is thriving in the face of the Trump slump

Andrea Thompson

ByAndrea Thompson

May 2, 2025
Jaynes Luxury Rentals (12)

With inbound travel from Canada to the US going through the floor, the reverse trend is being seen in parts of Canada itself, with American travellers keener than ever to escape home territory and head to their near-neighbour.

Despite the headlines and market uncertainty, Muskoka remains a top destination for US globetrotters and more travellers this year are opting for Canada over Europe.

“So far this year, bookings from US guests make up 40% of our revenue, when last year it only accounted for 17%,” explains Jayne McCaw, founder of Jayne’s Luxury Rentals in Muskoka, Ontario. “We’ve seen 135% growth year to date in revenue from US sales against 2024, and have already surpassed total bookings from the US in 2024 by mid-April 2025”.

Many local restaurateurs and hospitality businesses have removed all traces of American-made or owned brands from their wine cellars, bars and kitchens, says Jayne. “We’re delighted to welcome our US neighbours as ever,” she says, “but there’s definitely a strong feeling here that we should be visibly supporting our home country in this way.”

An established history of welcoming those looking for private escapes

Muskoka’s popularity expanded in the mid twentieth century, first among US Pittsburg industrialists, such as Carnegie and Mellon, then among the Hollywood film industry. The welcoming locals and beautiful natural environment saw lakeside inns, summer camps and homes spring up around the lakes in the 1940s and 1950s, and its popularity continues to grow. Jayne’s Luxury Rentals was set up in 2013 specifically to fulfil the requirements of guests used to five star hotel service, within the ultra-private setting of a lakefront home.

Quiet luxury for understated travellers

Muskoka ‘cottage country’ is all about quiet luxury, discretion and privacy. The architecture and accommodation is five star, while activities are often far more down to earth: Hollywood A-listers share tables at the pavement cafes of lakeside towns like Bala and Port Carling with multi-generational families, and Webers burger bar on Highway 11 is an essential pit stop for everyone coming and going to the region from Toronto.

To visitors that stay in Muskoka, it’s a chance to totally relax into lakeside living. Whether that’s on the dock or in the garden, with unobstructed views over whichever of the region’s 1,400 lakes your cottage is located, to skimming over the water on a boat or paddle board, tranquillity is a given.

Properties through Jayne’s Luxury Rentals start at £4,600 per week for a cottage sleeping four and rise to upwards of £60,000 per week for a 14-bedroomed estate on a private 16 acre island, with food and drink, travel and activities on top. McCaw is confident that despite the economic turbulence created by political uncertainty and tariffs, her clientele will remain loyal.

“A large proportion of our guests are firmly wedded to Muskoka as their must-go destination and really don’t want to go anywhere else. They’re drawn in by the stunning scenery and beautiful properties and once they have experienced the quality of our service and the incredible privacy we can offer, they just want to come back time and time again.

“I don’t see that changing any time soon – if anything, people are going to need that escape to quiet luxury more than ever.”