Market Volatility
At the time of writing, global markets are unsettled by President Trump’s latest tariff changes, with broader implications for Europe tied to US economic policy. Economists predict the dollar may strengthen in 2025, boosting Americans’ spending power abroad and encouraging more international travel. Meanwhile, Americans living in Europe told the press in March that they plan to stay put and vacation outside the United States.
In light of recent travel difficulties for Canadian citizens entering the US, along with bellicose remarks about the possible annexation of America’s northern neighbour, Canadians are increasingly voting with their feet. Hotels in Maine, a traditional holiday favourite for Eastern Canadians, are reporting a sharp drop in bookings, while airlines are seeing a similar decline. One airline servicing Hawaii has also reported a 25% reduction in flights in recent weeks.
Instead, Canadian vacationers are turning to Europe and the UK. Flight Centre Travel Group told Open Jaw, a Canadian travel news site, that staff have helped several clients pivot away from US vacations and rebook elsewhere. One long-time customer, for example, cancelled a trip to Arizona over the weekend and now plans to take her family to Portugal instead.
Many Canadians feel this is the time to take a longer-haul bucket list trip or a cruise that avoids American ports. A recent YouGov poll also found that 40% of Canadian small and medium-sized businesses are pulling back from US-bound travel. Well-publicised cases of Canadians and Brits being detained — as visa interpretations shift — are adding to the caution. One example is Becky Burke, a graphic novelist undertaking voluntary work, who was detained in the US for several weeks before returning home, highlighting the growing challenges around US entry visas.
USTA projections suggest that a 10% drop in Canadian inbound travel could mean 2 million fewer visits, $2.1 billion in lost spending, and around 140,000 jobs lost in the American hospitality industry.
America’s travel and hospitality industries’ loss could be Europe’s gain — and Expat Focus has also seen a rise in social media interest from Americans considering relocation to Canada, Europe, or the UK. Many have ancestral ties to these regions (Donald Trump, for instance, is said to be proud of his Scottish roots — though he’s unlikely to join the expat ranks). Increasingly, contacts are exploring the possibility of becoming EU or UK residents to escape what many view as a toxic climate in the USA.
Equity Release on the Costa Del Sol
Until recently, equity release – the practice of freeing up some of the capital in your home – has been off limits to British expats on the Costa del Sol. Lenders have been reluctant to roll out these products in the more traditional Spanish property market – until now. Castle Rock International Law & Investments are introducing an equity release scheme for Brits in Spain, saying that their new product is specifically tailored with expats in mind.
Italy Looks to Foreign Investors
The Italian government is turning to foreign investors to help close a funding gap driven by its large public debt. In 2012, Italy tackled its financial crisis by issuing bonds to small investors — a strategy that has raised around €245 billion so far, according to financial experts. Additional funds have come from the new 8-year “BTP Plus” retail bond, but its popularity is waning as the post-Covid cost of living continues to rise.
So the government is looking further afield to foreign investors, whom they hope will be attracted to Italy due to its current relative political stability.
Cyprus: A Top Choice for Expat Americans
Cyprus is emerging as a top choice for Americans seeking a cheaper way of life abroad. The US reports a 52% rise in American retirees collecting Social Security payments between 2016 and 2024. Britain, Spain, Portugal and Germany have also been popular European destinations, but expats report that Cyprus is a top choice for a number of reasons – cost of living and healthcare costs are the primary ones. Cyprus ranks 32nd in the world for high quality state and private healthcare, but the island’s low crime rate and prevalence of English are also factors in their choices.
Australia: Opposition Plan to Reintroduce Golden Visa
Australia’s controversial investment visa was scrapped in 2024, but opposition leader Peter Dutton has said recently that his party will revive it if elected. Financial experts have warned against these kinds of visas, and part of the reason for scrapping the Australian version were fears that applicants were not adequately proving where their money had come from – raising obvious concerns about its legitimacy. Anti-corruption experts note that these sorts of visas are often used for money-laundering and moving capital across borders, making it difficult to trace.
An Australian government commission also undertook a report which showed – definitively enough for the government to act upon it – that encouraging skilled immigration brings more money into a country than Golden Visas. If Dutton does want to bring back the Golden Visa, he’s going to face questions about how to limit the problems that its previous incarnation brought in its wake.