Canadians shifting travel destinations to cheaper East Asian countries amid affordability crisis

Nearly half of Toronto residents are still taking vacations despite the affordability crisis, but many are rerouting to cheaper destinations in East Asia to stretch their travel budgets.

A YouGov study commissioned by Flight Centre Canada found that 49 percent of Toronto respondents said affordability is the biggest factor influencing where they travel—outweighing safety (20 percent) and geopolitical concerns (10 percent).

Instead of quitting travel altogether, residents are adjusting their destinations. Lower-cost countries with favourable exchange rates have seen a surge in bookings. Around 52 percent of surveyed travellers chose Japan, 50 percent Cambodia, 42 percent Vietnam, and 20 percent China.

The price difference is dramatic. Eight nights at a four-star resort in Phuket, Thailand, costs about $1,855 CAD per person with flights—nearly $150 less than seven nights at a four-star resort in Jamaica. A bowl of pho at a street market in Ho Chi Minh City goes for less than $3 CAD, one-sixth the cost at Toronto restaurants. A visit to the Terracotta Army in Xi'an costs around $25 CAD, compared to $48 for the Acropolis in Athens.

Almost three-quarters of Canadians polled expect rising fuel and flight costs to affect their summer travel ability. Another 61 percent say higher prices in travel and other sectors will have the biggest impact on their ability to travel internationally.

Canada is facing a major affordability crisis affecting housing, food security, child care, and education, with the loonie dipping to a 14-month low. For many, choosing a cheap East Asian destination is a way to escape and rejuvenate without further straining their finances.