U.S. Tourism Faces US$5.7 B Loss as Canadians Curtail Travel

In 2025, the U.S. tourism industry is bracing for a significant setback as travel from Canada plummets. According to industry data, Americans could lose around US$5.7 billion in tourism spending as Canadians increasingly stay home or travel elsewhere.

A dramatic decline

Returns by Canadian residents from the U.S. are down sharply. For example:

• Air return trips from the U.S. declined by 27 % year-over-year in one recent month.
• Land crossings dropped even more steeply, with automobile return trips down 35 % in the same timeframe.
• More broadly, the first half of 2025 saw Canadian outbound travel to the U.S. decline by as much as 17.7 %, while travel to overseas destinations rose.

Why are Canadians travelling less to the U.S.?

Several factors are contributing to this shift:

• A weaker Canadian dollar reduces purchasing power for U.S. travel.
• Political and border-related tensions have prompted some Canadians to reconsider travel to the U.S.
• The strong trend toward overseas travel means many Canadians are opting for destinations beyond the U.S.

Impact on the U.S. tourism industry

The drop in Canadian visitors is hitting border-state economies and U.S. tourism broadly. Cities that traditionally draw large numbers of Canadian travellers are seeing lower hotel bookings, reduced retail spending, and fewer day-trips across the border.

Canadian travellers head elsewhere

With U.S. travel waning, Canadians are redirecting their travel dollars:

• Travel to Europe, the Caribbean, Mexico and other overseas destinations has risen.
• Domestic travel within Canada is also seeing a boost as Canadians explore their own country instead of going south.

What does this mean going forward?

For U.S. tourism, the Canadian drop is a red flag: a loyal and high-spending visitor base is receding. For Canadian travellers and the travel industry, the trend signals a lasting shift in preferences and travel patterns.

While the full effects will play out over time, the data to date suggest the cross-border travel relationship between Canada and the U.S. is undergoing meaningful change.