Old Orchard Beach hotels brace for impact of Canada-US trade spat
Photo / Jim Neuger
Old Orchard Beach may be less popular with Canadian tourists this summer for a number of reasons.
Old Orchard Beach, a popular vacation destination for Canadians, may get far fewer visitors from up north this summer due to an unusual combination of politics and economics.
Earlier this week, the seaside town made international headlines when outgoing Canadian Prime Minister Justin Trudeau fired back at U.S. tariffs by saying that Canadians will boycott U.S. products and “choose not to go on vacation to Florida or Old Orchard Beach.”
That message, which comes on top of unfavorable exchange rates that make U.S. travel more expensive for Canadians, spells trouble for Old Orchard Beach hotels and campsites dependent on the annual influx of visitors from Maine’s northern neighbor.
“It’s really unfortunate that the prime minister who was a couple of days out from the end of his term was making statements based on how Canadians feel,” said Mike Halle, president of the Paradise Park Resort and of the Old Orchard Beach Chamber of Commerce..
With less than two months to go until the camping resort opens for the season in early May, reservations are about 17% below last year, Halle said. Halle attributes part of the decline to a drop-off in demand from Canadians, who tend to book earlier at Paradise Park than American guests.
Canadians currently represent around half of the bookings, compared to 58% last year.
In addition, cancellations at Paradise Park have gone up from 30 last year at this time to 120 — the majority of which Halle said are by Canadians. The beachfront resort boasts more than 200 campsites from tent sites to waterfront RV hookups.
Optimistic that political leaders will bury the hatchet at some point, Halle said he’s more concerned about the weakening Canadian dollar that makes U.S. pricier for tourism.
One Canadian dollar currently buys 69 U.S. cents, a 7% decrease from 74 U.S. cents at the end of last summer’s tourist season.
“I’m not an economist [but] I don’t see where this is going to turn around sometime soon,” Halle said.
He also said that while he may consider offering some price promotions to Canadians, he’s hesitant to do so in part because it wouldn’t be fair to do so without offering a comparable break to American customers.
In addition, “once you give a deal it’s hard to no longer give it.”
’Nice to be mentioned’
Fred Kennedy, who owns the Alouette Beach Resort with his wife Anne, is more amused than angry at Trudeau’s Old Orchard Beach remark.
“At least we got a call-out,’” he said. “It’s nice to be mentioned in the same company as Florida.”
On a more serious note, Kennedy said that while Alouette has not gotten a single cancellation this year, some Canadian guests have voiced their concerns about the political rhetoric in response to promotional emails.
"I have received some Canadians that have taken the opportunity after receiving on of our perky invites to say, 'We're not coming back to Old Orchard Beach until there's a change of leadership,'" he said.
His main fear for longtime customers who choose to vacation elsewhere this year: “Heaven forbid they’ll have a good time and that will become their go-to place.”
License plates from Canada normally account for around 30% of the tags seen in the Alouette Beach Resort's parking lot, Kennedy said.
If there is any drop-off in Canadian visitors this summer he remains optimistic that those rooms will be snapped up by Americans.
Kennedy's bigger worry is the shoulder season, which he says can “make or break” a year for the year-round venue, whose 130 accommodations are spread across three properties.
Kennedy also pointed to an increase in red tape around crossing the Canada-U.S. border, including stricter rules for transporting pets, as another hurdle for travelers.
Expanded discounts
To entice more Canadian visitors this year, Alouette is offering discounted “par” rates to make up for the exchange rate difference.
“We have tried it in the past, but I have enhanced it to include more dates, particular during the shoulder season where it might be a selfish idea to make sure we fill rooms,” Kennedy explained..
While the response so far “hasn’t blown the doors off,” he noted that “it’s still early in the reservation season.”
Chamber of Commerce
Putting on his chamber of commerce hat, Paradise Park’s Halle said the group is brainstorming ideas with various partners on digital tourism initiatives for Old Orchard Beach.
“We believe the digital world gives us a chance to connect us to markets better,” he said.
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