Peter Guidi owns the Seagrass Inn in Old Orchard Beach.

By any measure, Maine’s summer economy depends on tourism, and Canadian visitors are one of its most important pillars. In 2024, roughly 800,000 Canadians visited our state and spent close to $500 million in our communities. They fill our hotels and motels, eat in our restaurants, shop in our stores, buy gas, attend attractions and support tens of thousands of seasonal jobs.

But Maine is quietly becoming too expensive, and too politically complicated, for many of the Canadian visitors Maine depends on most.

The Canadian dollar is now about 30% weaker than the U.S. dollar. That means a Maine vacation already costs Canadian families roughly 30% more in their own currency. On top of that, Maine adds a 9% lodging tax that appears directly on hotel bills and booking websites. Lodging is the most visible price point in any trip.

For a Canadian family booking a $1,200 hotel stay, that tax alone adds more than 100 U.S. dollars, or roughly 140 Canadian dollars. In a world where families are watching every expense, that surcharge can be the difference between choosing Maine or choosing somewhere else.

But cost is no longer the only barrier.

Recent federal trade actions and tariff disputes have angered many Canadians and hardened public attitudes toward the United States. Whether or not Mainers agree with those policies is beside the point. What matters is that tourism is emotional as well as economic. People are less inclined to spend their vacation dollars where they feel unwelcome, overcharged or politically alienated.

Maine now has a rare opportunity to send a clear and constructive message: federal politics are not Maine values, and Maine still wants Canadian visitors.

That is why Maine should adopt a one-year suspension of the 9% lodging tax for Canadian visitors during the summer of 2026.

This is not a permanent tax cut. It is a targeted, temporary tourism stimulus designed to bring new money into Maine’s economy at a moment when exchange-rate pressures and political resentment are both pushing visitors away.

Removing the lodging tax would reduce the tax-inclusive room price by about 8.3%. That price cut would be immediately visible on booking platforms and invoices. It would also give Maine a powerful and simple international marketing message: “Canadians stay tax-free in Maine — Summer 2026.”

More importantly, it would signal goodwill. It would say, in practical terms, that Maine understands the pressure Canadians are under, recognizes the political climate and wants to keep cross-border friendships and commerce alive regardless of what happens in Washington.

As a Maine business owner who depends on seasonal tourism and cross-border travel, I have seen firsthand how sensitive bookings are to price changes and sentiment shifts. When the exchange rate moves or political tensions flare, cancellations rise and shoulder-season occupancy drops. This affects payroll, hiring and whether small businesses can make it through the winter.

Tourism demand is price-sensitive, especially cross-border leisure travel. Canadians deciding between Maine, Quebec, New Brunswick or Nova Scotia are not making abstract economic comparisons. They are comparing final, all-in prices.

Independent economic estimates suggest that a lodging-tax suspension could generate between $18 million and $34 million in new Canadian tourism spending in a single summer season. That new spending would not be limited to hotels. It would flow directly to restaurants, bars, retail shops, gas stations, attractions and local services.

It would also stabilize seasonal employment. Higher occupancy means more hours worked, higher wages, better employee retention and more reliable hiring for businesses that already struggle with workforce uncertainty.

Critics may worry about the loss of lodging-tax revenue. But that concern ignores two important realities.

First, much of the forgone lodging-tax revenue would be offset by new tax receipts from meals, retail sales, gasoline, attractions and payroll. New visitors generate tax revenue across multiple categories, not just lodging.

Second, this policy would increase occupancy during shoulder periods; early June and late September and October when Maine has excess lodging capacity. That means much of the new activity would be truly incremental, not merely shifted from one week to another.

The administrative side is also straightforward. Eligibility can be verified using a Canadian passport or a Canadian billing address. The tax can be removed at booking or checkout. The program can run from June 1 to Oct. 30, 2026, and automatically sunset after one year.

Maine’s tourism economy is facing new structural headwinds. Exchange rates are not in our control. Federal trade policy is not under our control. But our tax policy is.

A one-year suspension of the lodging tax for Canadian visitors is a simple, responsible way to keep Maine competitive, protect seasonal jobs and show our closest international neighbors that Maine is still open, friendly and grateful for their business.