Canada Hidden Gem: How Orillia is Poised to Reap the Benefits of Rising Border Taxes and Boost Domestic Tourism in 2025

Published on March 25, 2025

By: Tuhin Sarkar

As rising border taxes and uncertainty surrounding cross-border travel take center stage, Orillia, a charming town in Ontario, is poised to experience a surge in tourism, driven by domestic travelers and increased interest from U.S. visitors. With a 25% border tax on certain purchases made across the U.S. border, many Canadians are rethinking their summer travel plans. This shift in behavior, sparked by the increasing cost of U.S. travel, is predicted to benefit Ontario’s tourism economy, with destinations like Orillia positioned to capture a larger share of the market.

A New Trend: Canadians Staying Closer to Home

Kris Puhvel, executive director of Orillia and Lake Country Tourism, has observed early signs of change in the region’s tourism landscape. “We’re already seeing some indication that there are fewer border crossings since the start of the year,” he said. “More Canadians are choosing to stay home.” The 25% border tax, which has made American travel less appealing, is encouraging many Ontarians to look at local destinations for their vacations. Puhvel sees this as a positive trend that could reinvigorate domestic tourism in the region, much like the “staycation” movement that flourished during the COVID-19 pandemic.

The pandemic played a significant role in reshaping Canadian travel habits. With international travel restrictions and safety concerns, many Canadians explored their own country, rediscovering local gems and fostering a deeper appreciation for regional tourism. Puhvel believes that this renewed sense of exploration will continue into the post-pandemic era. “There could be some positive impacts on tourism, with people looking at more of a staycation, just like they did during the pandemic,” he said. “Those conditions are favorable for our region.”

A Growing Interest from U.S. Tourists

While many Canadians are opting for domestic vacations, Orillia is also seeing growing interest from U.S. visitors. “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 explained. The combination of a strong U.S. dollar, political instability in parts of the U.S., and the undeniable appeal of Canada’s natural beauty is driving this uptick in interest. Puhvel notes that Americans are increasingly looking at Canada as a travel destination for the summer, especially with the added allure of the country’s scenic landscapes and outdoor activities.

To cater to this growing demand, Orillia’s tourism officials are ensuring their marketing materials are accessible to American audiences. “We’ve always distributed our guides in those regions,” Puhvel said. “But if interest continues to grow, we’ll certainly look at all options and adjust our strategy accordingly.” While the region has not launched a specific digital campaign targeting U.S. travelers, the growing inquiries are prompting tourism leaders to consider how best to leverage their resources.

Supporting Local: A Shift in Travel Behavior

While attracting international visitors remains important, Puhvel emphasized that Orillia’s core tourism audience remains domestic. The border tax, along with the growing sentiment of supporting local businesses, could further reinforce this shift in travel behavior. “There’s this growing sense of supporting local—supporting Canadian,” Puhvel explained. “It’s something that took hold during the pandemic, and I think people are still feeling that now.”

This renewed commitment to local experiences benefits small businesses, local artisans, family-run attractions, and restaurants in Orillia. The impact of increased domestic tourism is felt throughout the region, from the vibrant downtown area to the tranquil lakeshores. Many local operators are embracing the trend and are focused on marketing their offerings to Ontarians who are increasingly seeing the value of a vacation in their own province. “I think you’ll see a lot more of that ‘stay and play’ messaging—encouraging people to explore their home province,” Puhvel said.

Orillia: Ontario’s Hidden Gem for Summer Adventures

Orillia, located just 90 minutes north of Toronto, offers a perfect mix of natural beauty, cultural experiences, and outdoor activities, making it an ideal destination for domestic tourists seeking a peaceful, laid-back vacation. “We really shine in the summer,” Puhvel said, highlighting the town’s picturesque waterways, extensive trail systems, and vibrant event calendar. With summer festivals, art exhibitions, and outdoor adventures such as paddling on Lake Couchiching or hiking through lush forests, Orillia provides a refreshing contrast to larger, more crowded tourist destinations.

Orillia’s appeal is further bolstered by its growing collection of boutique accommodations, high-quality resorts, and family-friendly attractions. With fewer crowds and more space to enjoy nature, Orillia offers a unique opportunity for visitors to experience Ontario’s outdoors in a relaxed, stress-free environment. Puhvel notes that Orillia’s position as the “event capital of Ontario” during the summer months is a significant draw for tourists looking for lively, engaging experiences without the hustle and bustle of major cities.

A Lasting Change in Travel Habits

While it’s too early to predict whether the recent rise in border taxes will lead to permanent changes in Canadian travel behavior, Puhvel believes that the shift toward domestic tourism could be part of a longer-term trend. The COVID-19 pandemic allowed Canadians to explore their own country in a way they hadn’t before, and this newfound appreciation for local travel could have lasting effects.

Puhvel concludes with optimism, stating, “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. Now, I think there’s a renewed desire to embrace that—to see what’s already here, close to home.” As the domestic tourism market continues to grow, and as U.S. visitors increasingly look to Canada for a safe and scenic getaway, regions like Orillia are well-positioned to thrive.

The Spirit of Supporting Local Communities

Puhvel reflects on the growing movement to support local communities, noting that, while the shift in travel trends is still in its early stages, there is a strong sense of appreciation for what Canada has to offer. “It’s about appreciating what we have and supporting our local communities,” he said. With this spirit in mind, Puhvel is confident that Orillia and other Ontario destinations will continue to thrive, regardless of external factors like border taxes or global political instability. As long as the desire to support local businesses and experience the beauty of Ontario persists, tourism in regions like Orillia will remain strong.

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