Canadians flying out of U.S. airports to avoid taxes

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Canadians flying out of U.S. airports to avoid taxes

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CTV News Video

CTV National News: Scott Laurie on the trend

Canadian hotels and airlines are sounding the alarm over the increasing number of Canadians who are driving south of the border to board flights out of the U.S. in order to cut costs.

CTV Toronto: Pat Foran crunches the numbers

As many as 5 million Canadians could cross the border this year to use an American airport. The Hotel Association of Canada says it's not just hurting airlines, it's taking money away from hotels, restaurants and tourist attractions.

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Integrated Deicing Services employees de-ice a plane during a winter storm at Buffalo Niagara International Airport in Cheektowaga, N.Y., Tuesday, Feb. 1, 2011. (AP / David Duprey)

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CTV.ca News Staff

Date: Wed. Feb. 16 2011 8:49 PM ET

About one in five Canadian leisure travellers avoided high domestic taxes by driving to a United States airport to fly to their destination, according to a Hotel Association of Canada survey.

The amount of Canadians who crossed the border prior to flying was up three percentage points from 18 per cent in 2009, according the group's 2011 travel intentions survey.

Another 11 per cent of Canadians surveyed said they are considering making the trip to a U.S. airport this year because of dollar parity.

The potential that a third of Canadians could head to American airports could cost domestic businesses -- such as hotels and airlines -- billions, the hotel association says.

Association president Tony Pollard says the Canadian government needs to reduce airport and fuel taxes, security surcharges and airport rents, all of which the travel industry has long lobbied for.

"At the end of the day, the government's losing revenue, industry is losing revenue, we're all losing," Pollard told CTV News. "We need to stop this snowball effect and turn it around."

Toronto's Pearson International Airport, for example, has some of the most expensive taxes in the world. That makes the airport near Buffalo, N.Y. -- a two-hour drive away -- inviting for travellers from the GTA.

Pollard said travellers from Ottawa are heading to Syracuse, N.Y. to board planes, while Montrealers can fly out of New York State's Plattsburgh International Airport, which bills itself on its website as "Montreal's U.S. Airport." Travellers from Vancouver have long opted to fly out of Bellingham or Seattle, Washington.

"You name it, the list goes on and on," he said. "And the numbers keep increasing. We're very, very concerned."

Pollard says the Internet has made it easier for travellers to find deals, making it more likely for them to cross the border if the price is right.

The survey found 73 per cent of leisure and 86 per cent of business travellers go online for information before booking.

Some 40 per cent used their mobiles to check the weather, 27 per cent to check flight times, 19 per cent to book hotels and 11 per cent to book travel tickets.

The survey found 83 per cent of Canadians plan to take a vacation in 2011, up from 78 per cent last year.

The online survey was conducted in January 2011 among 1,627 "likely travellers" and had a margin of error of plus or minus 2.4 per cent.

With a report from CTV Toronto's Pat Foran

Comments are now closed for this story

Dan Nowak
said
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I am sad to hear that our secret is getting out. I have been telling all our freinds for years to fly out of Buffalo. It is a nicle little airport, tickets are a fraction of what you would pay at Pearson, so is parking and getting in and out of Buffalo is a breeze. Pearson is a nightmare that I only use when I have absolutely no other choice.

Lyle in Pincher Creek
said
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Yes now someone is showing what is happening. Just hope this doesn't close the loopholes. I priced tickets from Calgary to Dallas and all I could find was round trip cost of $1500 each. I am flying out of Kalispal MT on Friday for $700 round trip each.

Eve
said
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It has nothing to do with the taxes. For us its got to do with the price of the fares. To fly from where we are in Canada its roughly $2,400 for 2 return to drive over the border and fly it's almost 1/2 the price that includes parking our car for 2 weeks at the airport and medical coverage

randy
said
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Ottawa to San Antonio Tx $1600 per person. Syracuse to San Antonio TX $900 per person, 3hr drive Ottawa to Syracuse, $99 1 night in a holiday Inn (incl a week of car park). You do the math....

10-78
said
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I live in a large border town. Not only do I use Buffalo airport for all my air travel but I also cross weekly to purchase my gas and groceries. On milk and gas alone (4 kids) I save $1800.00 a year. I am all for paying my FAIR share of taxes but I refused to be ripped off.

Sam
said
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I'm not sure how helpful it is to drive sometimes 100 kilometers or more to save $50 bucks on a plane ticket. What's it cost to park your car there as well?

Northern Princess
said
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Don't blame the people for doing that at all. It is so incredible how expensive things are in Canada for travelling. Our Canadian tourism says we should visit our own country, which I would love to do, but flying from Ottawa/Toronto to Vancouver costs an arm and a leg, so with shopping around and getting deals, one can almost travel to the other side of the world for almost the same price. Unreal! Time Air Canada, fix their planes first and foremost, and reduce prices. International flight and seats missing parts on armrest, seat not able to slant, not enough blankets/pillows for ALL passengers, food terrible and huge prices... ridiculous. (Been there, done that, will not go there again)

Brian - Kamloops
said
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Go online and check the fare difference between Alaska Airlines from Seattle- Kahului, Maui return and WestJet from Vancouver-Kahului, Maui return! The difference is in excess of $400.00 in favour of Alaska Air. Air Canada for the same route is even more expensive then WestJet. The foregoing is regular fare for travel from early October to early December, 2011 and does not include sale fares.

Michelle
said
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Perhaps our higher flight costs are due to Canada paying our pilots higher and "acceptable" salaries. Pilots in the U.S. rank at the lowest tax bracket or in the poverty line, as they are paid such low wages. Maybe that's why the U.S. flight costs are so much lower?

Al B
said
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My parents recently flew to Vegas for 2 weeks. I suggested they look at flying from the US. To fly from Flint to Vegas was 500$. To fly from Toronto to Vegas was 950$. We're in Sault Ste Marie. It's 4 hours to Flint or 8 hours to Toronto? Which would you choose? Oh ya, and when my friend comes home from Finland, they have to drive from Toronto, because the return flight from Toronto costs more than the flight from Helsinki? Does that make sense?

Richard in New Brunswick
said
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You can bet your boots that there's an entire department of CRA bean counters working furiously to find ways to block Canadians from avoiding getting screwed. It would never occur to them to work as hard to find ways of lowering taxes and fees so Canadians wouldn't have to go to such lengths as described here. Of course, I found a way to beat them all. I DON'T FLY. IMHO, hauling an entire family, with luggage, south for a few days is a ridiculous waste of not only money but of non-renewable resources. Is life really that boring right here in Canada, where there are numerous healthful activities in which to participate, to warrant the incredible hassle and cost to fly to some overpriced, artificial, "keep-up-with-the-Joneses" resort in some other country? Are you people all nuts? You don't know a good thing when it's right under your noses.

Jackie Treehorne
said
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I too have saved money by driving to Syracuse, NY and not flying out of Ottawa. I spend the money saved on cake, which I love to eat!!

Jim - North Saanich, BC
said
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The last time I travelled by air within Canada, 57% of the cost of my ticket were "add-ons" like HST, NavCan, Airport Improvement, Security and the list went on. Today I just priced a round trip from Victoria to a US destination and the total cost with all the additional "Canadian" charges was $609. I can make the journey from Seattle to that same destination for $219 inclusive using exactly the same flights I would have connected with by leaving from Victoria. I can get to and from Seattle by other means for a great deal less than $390 and shall do so.

unknown
said
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Me and my family have gone to Disney World the last 4 years.We live in Nova Scotia and we drive to Maine to fly to Orlando.

PearsonNeedsARealityCheck
said
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We made the 3 hr drive from Guelph to Detroit because the cost of flying to Vegas out of Toronto was over double that of US airline. Toronto is ridiculous for fees.

Cix Cents
said
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For Toronto to Chicago, Porter Airlines is quite competitive especially when you buy their discounted tickets at 20-30% off. Even with taxes included, it's still way much cheaper than Air Canada, and only costs just as much as flying out from Buffalo with American, United, or Southwest. Plus with Porter, you get business class service, convenient location of the city airport, and very short x-ray/immigration line. Compare that to an hour long queu at Pearson or the Niagara border.

James from Vancouver
said
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I recently priced a flight Vancouver to London Heathrow on Air Canada - $1132; priced the flight Seattle - London Heathrow via Vancouver on Air Canada - $850! Almost $300 cheaper and I was going to be ON THE SAME PLANE flying Vancouver to London. Taxes are part of the problem, but the base fare Air Canada was charging was almost $250 of the difference. We are being ripped off!

colleen
said
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With the Canadian dollar we can buy a great deal more in the US, homes, food, clothing, electronics etc. Even the US minimum wage is higher. Makes you wonder what the big deal is about the Canadian dollar which isn't worth much in Canada. Things are so over priced despite China working away to bring us those great deals.

lvt
said
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10 of us flew detroit-aspen, the first batch of tickets were $366, then the last batch were $450, this was on Frontier Airlines(first time, loved it)The flights from toronto were about $850 each, average saving was about $500 per ticket.
I used priceline and got 4 hotel rooms the night before in detroit for $240 (3 1/2 star marriott), paid $40 per car at the airport, the drive was about 4 hours, the border crossing was a breeze!!!
Although Buffalo is closer Detroit has more direct flights.
I feel that AC/United have a monopoly re Colorado...I took great satisfaction with flying out of Detroit and saving $5k.

Joe
said
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2 yrs ago we flew out of Buffalo to Orlando for $666 taxes included. Out of Toronto it would have been more than double, the airfare was the same, it was just because of the taxes.

JPC
said
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You're also forgeting about the taxes that you don't see and are built into the price.Taxes on fuel pumped into the plane, landing fees paid to the airport, employee costs are higher as employers pay EI and CPP and everything from fuel, parts and deicing fluid costs more in Canada.

Steve from Alberta
said
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I live in Alberta and not far from the border of Montana. I travel to the US to make some international flights or even flights within the US. To get to the Calgary airport from Medicine Hat by air can cost me as much as $400 one way per person so driving the three hour road trip to Calgary can be worth it. The savings can be quite substantial even if I drive the 4 hours to get to the international airport in Montana. For example I compared flights to Las Vegas from Calgary or from Great Falls Montana. A 3 hour drive to Calgary verses a 4 hour drive to Great falls. I would also have to be at the Calgary airport 2-3 hours before my flight because it is considered international. If I leave from Great Falls I drive for 4 hours but only have to be there 1 hour before as it is not international. Airfare costs were also about $400 cheaper for me and my spouse from Great Falls as well. Good savings all around by leaving from the US instead of Canada. I think this should be a WAKE-UP call to Canadian airlines and government to lower the fees, taxes and ticket fares so we dont have to go somewhere else. BUT in the same breath this a part of the free market system where consumers go to where they can get the BEST deal.

Travelbug
said
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We fly from the US all the time. Air Canada from our home to Orlando - $696. Air Tran from Portland, non stop, return airfare - $189.00 taxes included. You do the math - Air Canada has a monopoly and figures they can charge what they want and people will use them. West Jet is the same ....US has many more carriers and options. Makes sense to cross the border.

savings
said
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I booked a trip to Disney today on bookit.com my total costs for round trip for 4 and hotel for 5 nights came to 1239.00. We are flying out of Syracuse. The same trip out of Ottawa is just shy of being triple the price.I would like to put this money back in the Canadian economy but at the same time would feel like the same economy was gouging me knowing I could have gotten a much better deal.I guess the Canadian government will have to survive on the 31% of personal income tax I give them. That's right my husband and I along with many other Canadians pay 31%. I'm not overly motivated to give more. Sorry:(

Joe Canadian
said
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Gareth hit the nail on the head - it isn't just the taxes it is also what the airlines charge and airport fees they may have buried in their rates. I hate flying from a Canadian airport and will avoid it any chance I get. Wake up Air Canada, your monopoly is beginning to crumble!

Krystle
said
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WHEN WILL THIS SYSTEM FIX? $ is the same adjust the costs accordingly to prevent the loss. Jeez it isnt rocket science. Some money is better than none.

Brian in Calgary
said
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You want to talk brutal, then do not fly out of Calgary. The fees here are outrageous and they could not care less about you. They are building new runways, hotels, want to add onto the terminal, so they are sucking every cent out of you. Save money, drive to Spokane, fly cheaper. Take advantage of the high dollar, buy south of the boarder if you can.

Sam C
said
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Gareth is right -- the fees are high, but so are the fares. I just checked online, I can fly from Toronto to London UK - RETURN - for $492 plus $505 in fees, for a total of $997. A return flight from the Soo to Toronto runs $975 plus $229 in fees, for a total of $1204. (Both depart Sat and return Mon). I compared that with flights from Soo, MI to Detroit, and Detroit to London. The domestic flight runs $534 (including $28 in fees), and the international flight is $869 (incl. $157 in fees). THAT's why we're flying from the US.

Brad
said
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My folks have driven to Buffalo 3 times in the last 3 years for travel to Peru, Florida, and Costa Rica. They say they save a fortune.

Darlene in B.C.
said
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Yes, we did fly out of Bellingham via Alaska Air last Oct. $153.00 return to Vegas. Our hotel in Bingham gave us 7 days free parking to stay one night with them ( on our way home). We live about 300 miles in the interior and can't even get a one-way flight to Vancouver for that price. Thanks to the hotel, none of ours would do that in Canada. At home I shop only made in Canada which is becoming almost impossible. So, new hotels assc. can shove their info...more laws will ruin this avenue for Canadians now.

Bucko
said
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If you are close by an American city with an airport that has all the routes covered it is just common sense after all things considered that if it is money in your pocket then go for it.

Michael
said
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Politicians take note. Taxes are too high at our airports.

Jimmie In Eastern Ontario
said
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agreed...Syracuse has a great airport and I fly out of there as much as possible to avoid the taxes.

Amazing how much cheaper everything is in the states when compared to Canada. $15 for 30 cans of beer while in canda it is over $40 for 24....

Makes you wonder just how much waste is taking place at all levels of government????

wake up tax payers

George in Calgary
said
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Maybe it is time for Canadians to get off their ever loving duffs and become more proactive. By this story and the comments some have and for those close to the US border it is a possibility. One commentor said that it is not only the taxes that elevate prices. One must also consider the landing fees and improvement fees that each landing aircraft must pay. However all of that aside maybe we as a nation should take a page from what is happening in the Middle East. At least on the surface things are changing from the old very wealthy guard to something that is maybe more people friendly.

Greg in Cambridge
said
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tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax ........had enough yet?

Retired in Burlington
said
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Toronto is the most expensive airport in the world. What is the reason for all the taxes that are put on over and above the cost of a ticket? I have seen ads for a trip to Orlando for $59 and in very small print beside the price it reads Tax $250.00. I flew to Tampa with Westjet out of Hamilton Ont. and the same trip was $125.00 more flying out of Toronto and this is with the same carrier. If you want people to use your services, you have to give them a good price or they will go elswhere. Quit the gouging and increase your business on volume thus increasing your profit.

RGBrook
said
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This is but a small example of how Canadians are heading south for the breaks in our wallets that our government could care less about. Our dollar has more value than the US dollar, yet we pay more for virtually everything. We are taxed to death and look what we get for "forking over" every penny demanded. It's up to the Conservatives to correct this and to correct this now. But don't hold your breath - you will die!

Ed Philips
said
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Don't forget the airport improvement fees in the mix. By the time you add it all up holidays are half price by flying through US airports using US carriers. It's called competition. You don't want to compete? Consumers will find someone who does.

ray
said
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There is another advantage of driving to the states to fly. First it's customs - when you drive across the border you don't get near the hassle as airport customs. Second, I find that busineses in the states are more appreciative of the business, you get a thank you. When in a restuarant you're greeted with a very nice greeting, usually hun or dear whereas in Canada you get the impression that you are interupting a waiter's time. So maybe the government should actually stop and look at the figures and see what the results are, but not likely.

Paul
said
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We have done this for years and years. You have to save where you can.

Rob in Calgary
said
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Many of the taxes and fees represent a warped version of the "user pay" philosophy, even though the costs benefit a much wider community. Costs related to security should not be borne just by travellers, but should be part of national defence and intelligence costs paid by all who live here. lf a plane is brought down, it affects everyone not just those inside it. Just more federal unloading of national budget items onto others.

A.G.N.
said
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taxes,taxes,taxes. good god next we will be taxed for breathing air, going to the bathroom. is there any thing else? we the people can bring the government to their knees. stay home for a year and don't use the airports and trains.

Mac in Victoria
said
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My wife and I are two of those people that fly out of the States. We recently flew to Mesa, Arizona from Bellingham, Washington by Allegiant Air. We paid for return ferry from Vancouver Island to the mainland,spent two nights in a hotel in Bellingham, (one going,one returning) paid for gas, food etc and saved over $400.00. If our politicians and Canadian Airlines are upset, I say too bad. Lower the taxes and prices..Simple!!

Gerry from Toronto
said
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Cry me a river. It's more than just taxes. It's greed.I routinely fly out of Buffalo and AVOID Toronto at all costs. I recently flew to JFK for $98 return from Buffalo. Two canadian carriers wanted over $1000 to fly the same day.

Gareth Hitchings
said
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It's not fair to say this is about taxes, as the article itself makes clear: "A midweek roundtrip Air Canada flight costs $629, including $137 in fees, taxes and surcharges. Star Alliance partner United Airways offers the trip for $308, including $42.80 in taxes and fees."Ok so what does that tell us? The Canadian air fare, without taxes, is $492. The US air fare without taxes is $265.20. So yes, the taxes are higher in Canada, but even when you ignore taxes, the fares that the Canadian airlines are charging are almost double those of the US airlines. So quit blaming all of this on taxes - taxes are only part of the problem. Canada has an uncompetitive airline market with a monopolist player that gouges Canadians.

TC
said
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I live in Montreal and have to travel for work on a regular basis. The cost of flying to the USA & overseas is ridiculously higher from Montreal than it is from Burlington, VT, which is just a short 2 hour drive from here. It's a rather nice drive too. Canadians are getting gouged in every way possible (food, gas, taxes etc) and its a huge savings for me to fly from across the border.

Kevin B
said
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We did this last year, flying out of Buffalo. It wasn't a bad trip at all down the 407 and QEW to Buffalo, stayed overnight at a hotel right by the airport that included a week's parking pass in their fee, and then flew out the next morning. On the shuttle to the airport, and at the airport, we ran into three other Canadian families, doing the exact same thing. For a family of five, it's a no-brainer! When Southwest or Jet Blue are offering flights for $69 plus a few token taxes, how can you possibly compare that to $700-800 per to fly out of Toronto with AC or WJ? Even w/o the inflated airport taxes, AC and WJ are still not competitive. Those two airlines just bank on having enough business travelers to cover the cost of each flight.Plus with flying out of Buffalo within the USA, there's no customs to go through. Getting thru security wasn't that bad, and then coming back we were out of the airport within 20 mins of touching down.

Lorna
said
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I fuel up in Blaine, Washington every weekend. I avoid all the fuel taxes that are imposed across the lower mainland. We arent clogging the border crossings for only cheese and milk. Throw in the gasoline and electronics and that's a huge chunk of untaxed goods leaving our country every day. Do not believe for one moment that the savings is not there - the savings is there and it's huge.

CE
said
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It does not take a rocket scientist to understand this. If I can avoid paying higher taxes while I travel, I will, It is not difficult to understand why higher corporate taxes will drive away business. If you don't believe it, just look at where Paul Martin registered his CSL.

Bill Bixby
said
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Living paycheck to paycheck... whine whine whine. It's entirely within your power to change your career and find a new job. Become a civil servant if you think the job is so cushy. What's stopping you? Stop complaining about your shortcomings and do something about it.

Seen it up close.
said
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I work for a sucessful US carrier out of YYC. The taxes we pay are absurd. You want people to support Canadian than stop taxing us so much! Flying is a luxury for the average Canadian and with baggage fees its costly for us! Aviation taxes are brutal here in Canada. Its time something is done!!! I booked at $79 fare on AC to Vancouver, but it was well over $100 by the time it was done. Whats with the aiport departure fees??? $25 per person, Nav Canada fees, Gst, Immigration fees...cmon really????

Richard
said
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... I've done this many times the average savings from flying my family SEA (SEATAC in Seattle) to MEX (Mexico City) is over $100 a person... a savings of more than $400 for a family of four. YVR can stick their ripoff fares and taxes where the sun don't shine.

Norm_D
said
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I don't blame anyone for doing this. Montrealers have two choices in the USA when flying, Burlington and Plattsburgh. If travelling by road the USA is also more attractive. Fuel prices are about 70 % of what they are here and if you stop at the welcome centres and get the hotel coupons the hotels, including Hilton, are one half of what they are here, breakfast included. I recently priced a road trip to visit relatives in Vancouver, BC. By Canada the total road cost would be $4600 and in the USA $2500. Not an insignificant difference is it?

venice, BC
said
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Hey there "tax and spend" ers...take note. 1/5 of air travellers are already avoiding the ridiculous taxes Canadians are forced to ingest. How long before all shopping is done across the border...Oh Wait, those living with easy enough access already do!A vote for the "left/left-center" is a vote for higher taxes, meaning more people will do all they can to avoid the taxes, meaning less money for all those "great" social programs the Left promise to get elected.Ask BC or Ont. (Liberal governments) bar/restraunts owners if more taxes (HST) increases or decreases business....

Western Canadian Flyer
said
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Surprise!!!We fly out of Bellingham to Las Vegas for $99. Why fly out of YVR and get robbed?In fact, Bellingham gets all of our business now. It's even cheaper to fly from there to another Canadian city.Nav Canada and the airport authorities had better sharpen their collective pencils.

Ella-Max
said
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I don't blame them a bit. Not all Canadians have cushy cradle to grave jobs as civil servants or are career political leeches on the taxpayer's dime to pay for their pricey existence. Most of us are struggling from pay check to pay check thanks to over the top big government and their minions. We're broke thanks to the likes of them so we have to save a buck anyway we can.