Is Trudeau’s resignation a good thing for the travel industry?

Political change is in the air after Prime Minister Justin Trudeau on Monday (Jan. 6) announced that he will step down once the Liberal Party has chosen a successor.

Trudeau, who became Liberal leader in 2013 and prime minister in the fall of 2015, resigns amid growing pressure from within his party and low public approval ratings.

Announcing his decision outside of his residence, Rideau Cottage, in Ottawa yesterday, the PM said Canada “deserves a real choice in the next election, and it's become clear to me that if I'm having to fight internal battles, I cannot be the best option in that election.”

Trudeau said he met with Gov. Gen. Mary Simon and that she has agreed to prorogue, or suspend, Parliament until March 24.

The decision has now sparked a leadership race to replace Trudeau and find someone who will take on the Liberals' rival, Conservative Leader Pierre Poilievre, in the next federal election.

Yesterday’s update resolves weeks of political turmoil within the Liberal party. At least two dozen MPs and regional caucuses — including Atlantic Canada, Quebec and Ontario — have called on Trudeau to step down.

In a more a high-profile case, Trudeau's fate was perhaps secured when Chrystia Freeland, last month, resigned as finance minister and deputy prime minister on the day she was set to present the fall economic statement.

What does Trudeau’s resignation mean for the Canadian travel industry?

During the pandemic, when air travel reached a near shutdown and prolonged travel restrictions – from pre and post-flight COVID-19 testing to hotel quarantine measures – crippled the travel industry, Canadian travel advisors, tour operators and airlines were at the mercy of Trudeau and his willingness, under the direction of Health Canada, to reopen the border.

Trudeau was a source for public (and travel industry) anger during those dark years as other countries reopened and resumed everyday life, including travel and tourism.

And while the PM may be remembered for quickly rolling out emergency COVID-19 assistance programs, travel advisors won’t forget the complexities that came with those funds as they weren’t a one-size-fits-all system.

Many travel pros – home-based and independent travel advisors, for one – faced intense difficulties in qualifying for much-needed relief funds both on the federal and provincial levels.

Wait and see

Is Trudeau’s exit a good thing for the Canadian travel industry?

“It’s a wait and see for the travel industry until the election,” Gregory Luciani, president & CEO of TravelOnly, told PAX on Monday. “A change in leadership could result in another Liberal government, depending on a number of factors, so only time will tell what priorities the new administration will have.”

Luciani doesn’t trust the polls as October, when the federal election is set to take place, is still “a long way away.”

“If the PC party does get in, I believe that will only help fuel the economy, which will boost the travel industry even higher in 2026 and beyond,” he said.

The future of the travel industry will depend heavily upon private sector investments in infrastructure, technology and services that meet the needs of a rapidly-aging population, Luciani went on to say.

But there are still things to worry about. 

“The wild cards – the war between Russia and Ukraine and Israel versus Iran – is a cause for concern, so hopefully we can deescalate the tensions in these regions,” Luciani said. “Trump is also a cause for concern as any change in U.S. foreign policies can have serious implications for travel and our economy.”

Despite the reset in Ottawa, Luciani thinks 2025 will still be a “record year” for Canadian travel advisors.  

“With interest rate cuts on the way and post-COVID demand still strong, combined with the aging baby boomers and inheritances, this will push the travel industry to new pre-pandemic highs,” he said. “Even with a lower CAD dollar versus the USD, it’s going to be a great year for the Canadian travel market – especially for the advisors as the demand for professional services is also at all-time highs!”

“A pivotal moment for Canada”

Zeina Gedeon, CEO of Trevello Travel Group, noted how the Canadian travel industry has “weathered unprecedented challenges in recent years,” and during this time, Trudeau’s leadership has been both lauded and criticized.

“Particularly for decisions around border closures, travel restrictions, and financial relief for the industry,” she said.

That being said, Trudeau's resignation marks “a pivotal moment for Canada” and could “significantly influence the future of the nation's travel sector,” Gedeon told PAX.

“The industry continues to grapple with pandemic recovery, economic uncertainties, and environmental pressures, making leadership and strategic vision more critical than ever,” she said.

A change in leadership presents an opportunity to “reimagine the role of travel and tourism in Canada's economic and cultural fabric,” Gedeon said.

“A new government could introduce innovative policies to revitalize the sector, including increased investment in tourism infrastructure, enhanced regulatory frameworks, and targeted marketing campaigns to attract global visitors,” she added.

“For the industry to thrive, it is crucial that incoming leadership recognizes travel not merely as a revenue generator but as a cornerstone of Canada's identity and a driver of economic growth. Collaboration, innovation, and sustained investment will be key to fostering long-term resilience and growth in the Canadian travel industry.”

ACTA ready to engage 

Acknowledging the recent events in Ottawa, the Association of Canadian Travel Agencies and Travel Advisors (ACTA), which advocates on behalf of the travel trade with the federal government, said it remains committed to “working constructively with all elected officials and party leaders to advance the interests of travel agencies and travel advisors.”

“ACTA will continue its dedicated advocacy on key industry priorities, including elimination friction for travellers and a competitive market,” said ACTA’s President Wendy Paradis in a statement. “We look forward to engaging with all parliamentarians and political leaders to ensure the retail travel industry's perspective is well represented in policy discussions that affect our sector.”

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