Why Canadian Tourism to Cape May County is Declining: The Impact of Political Tensions, Exchange Rates, and the Economy on Wildwood’s Visitor Numbers

Published on August 2, 2025

Canadian tourism to Cape May County, especially on Wildwood has decreased because of the sour political relations between U.S. and Canada, falling exchange rates along with other international economics issues. Political tension — including trade disputes and tariff threats, which have created frost between the nations in recent months; and an unfavorable exchange rate that makes American travel more expensive for Canadians — has also made vacations less economical. Combined with residual impacts of COVID-19, the result is that a large number of Canadian visitors to Jersey Shore have seconded guessed visiting on their trip for this summer.

Cape May County, specifically Wildwood, has been a popular destination for Canadians over the past few decadesl -particularly during late July and early August’s”construction holiday.” This unofficial holiday, which started out as a day off for construction workers in Quebec, has become an annual pilgrimage for many Canadians who head to the southern Jersey Shore. But local business leaders are seeing a worrisome slump in Canadian tourism over the past couple of years, and it’s taking its toll on how much Canadians spend while here.

Canadian tourists provide between 7% and 9% of the tourism money in this region, said Diane Wieland, director of tourism for Cape May County. This has long been a significant slice of the county’s economy, especially during the height of summer when Canadians typically stream into Wildwood and other shore towns. But in 2023, the Canadian tourists who might once have visited are a rarity and businesses like this one feel deprived.

The Decline in Canadian Visitors: Economic and Political Causes

Several factors have contributed to the decrease in Canadian tourists along the southern Jersey Shore, but the primary reasons appear to be economic in nature, compounded by political tensions between the United States and Canada. U.S. Customs reported a 17.4% decrease in travelers entering from Canada as of June 2023, and a recent survey by Leger Marketing found that over half of Canadians who had planned to visit the U.S. had chosen alternative destinations instead.

One major issue is the exchange rate between the U.S. dollar and the Canadian dollar. As of late July, one U.S. dollar was worth 1.38 Canadian dollars, while the reverse exchange rate made the Canadian dollar worth only 72 cents in U.S. currency. This unfavorable exchange rate means that Canadians must spend significantly more when traveling to the U.S., particularly for things like gasoline, food, and lodging.

In Quebec, for instance, gasoline costs about CA$5.64 per gallon, while in New Jersey, the price is significantly lower at $3.05 per gallon. The difference in prices, along with the exchange rate, significantly increases the cost for Canadian families to travel to Cape May County for their vacation.

Additionally, political tensions between the U.S. and Canada have added fuel to the fire. Former U.S. President Donald Trump’s threat in early July to impose a 35% tariff on Canadian goods in response to Canadian Prime Minister Mark Carney’s refusal to drop a digital services tax on U.S. tech companies only heightened the strain between the two countries. This political climate, along with other factors, may have dissuaded some Canadian tourists from traveling to the U.S. altogether.

The Impact of the COVID-19 Pandemic

The COVID-19 pandemic also had a significant impact on Canadian tourism to Cape May County, as travel restrictions closed the U.S.-Canada border for much of 2020. While Canadian tourism began to recover in 2021, it has not yet returned to pre-pandemic levels. Prior to the pandemic, Cape May County saw a strong presence of Canadian tourists during the construction holiday, with many families booking rooms for weeks at a time and returning year after year.

By 2023, tourism numbers from Canada had improved but were still only about 60% to 65% of what they were before the pandemic. The economic strain caused by the pandemic, coupled with the ongoing political and financial challenges, has made it harder for Canadians to justify a trip to the Jersey Shore.

The Historical Significance of Canadian Tourism to Cape May County

The connection between Cape May County and Canadian visitors, particularly from Quebec, has been strong since the 1970s. During that time, the construction holiday became a popular time for Canadians to vacation. Local officials in Cape May County recognized the opportunity and began advertising to Canadian markets, particularly in Montreal and Quebec. The strategy paid off, and Cape May County became a top destination for Canadian families, with many returning year after year.

As the years passed, this connection only deepened. The region’s tourism office operated in Montreal until 1995, and local businesses began to cater specifically to their Canadian guests. Many motels, resorts, and campgrounds were filled with Quebecois families during the summer months, and Wildwood, in particular, became known for its French-speaking visitors.

The area’s local economy grew accustomed to this influx of Canadian tourists, and the relationship became an integral part of the local tourism identity. Businesses in Cape May County continue to advertise to Canadians and maintain a French-language presence on social media, but the current downturn is raising concerns about the future of this vital connection.

The Impact on Local Businesses

For local business owners in Cape May County, the decrease in Canadian visitors is already being felt. Motels and resorts that typically see a large number of Canadian families booking rooms months in advance are struggling to fill vacancies. Sylvia Rutkowski, who works at Five Mile Marketplace in Wildwood, remembers when the store was bustling with French-speaking customers. This year, however, the absence of Canadian tourists has been noticeable.

Kathleen Thompson, who owns the Granada Ocean Resort in Wildwood Crest, reported that, typically, about 30 of her 36 rooms are booked by Canadian families during the peak of the summer. This year, however, she has been accommodating walk-in guests, a sign that the motel is not seeing its usual Canadian influx.

The Charm of Wildwood: A Town Steeped in Tradition

While the drop in Canadian visitors is a concern, Wildwood still has its charm. The town is known for its retro, “doo-wop” motels and neon signs that seem frozen in time, evoking the classic beach vacation of the 1950s. The local vibe, along with its long-standing connection to Canadian tourists, makes Wildwood a nostalgic destination for many families.

Debbie Heenan, who manages customer relations at the Quebec Motel By-The-Sea, has noticed that a number of Canadian visitors often reserve their next year’s stay before departing, ensuring their return to the motel. Wildwood’s familiarity, with its classic resort atmosphere, continues to draw loyal visitors, and many of them stay in touch with the motel on social media during the off-season.

Despite the decline in Canadian tourists, businesses in Wildwood remain hopeful that the town’s unique appeal will continue to attract visitors from both sides of the border, even if the numbers have decreased.

The Future of Canadian Tourism to Cape May County

With Cape May County bracing for a decline in Canadian tourism, local businesses are scrambling to adjust. The political and economic realities driving that downturn might be temporary, but the problems facing Cape May County tourism leaders are not. The future of Canadian tourism in the U.S. for example is likely to hinge on a range of factors, including when (or if) geopolitical tensions between Canada and the U.S. are resolved, how exchange rates fluctuate, and pandemic recovery more generally.

Among other factors, the number of Canadian tourists coming to Cape May County is falling because of political frictions like trade wars between the United States and Canada, disadvantageous exchange rates for Americans abroad and continued economic stress. All of these forces have combined to make travel difficult, and less fun for Wildwood as well—especially when you add in the hangover from COVID-19.

For now, Cape May County and Wildwood must muddle through a summer season with fewer Canadian tourists. Although its future is far from certain, the town’s long-standing ties to its Canadian guests hold out hope that one day soon — perhaps not this summer but next?—the Jersey Shore will once again be a premier destination for families of Quebec and elsewhere.