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U.S. Tourism Could Lose $5.7B as Canadians Opt to Stay Home

U.S. Tourism Could Lose $5.7B as Canadians Opt to Stay Home

U.S. tourism faces $5.7B US loss as Canadians continue to stay home

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A Canadian Boycott: Effects on U.S. Travel

Many Canadians are increasingly boycotting travel to the United States, and the repercussions for the U.S. economy are substantial.

Decline in Tourism Revenue

According to a U.S. Travel Association report, international tourism spending is set to drop by 3.2 per cent in 2025. This amounts to a staggering loss of $5.7 billion compared to the previous year.

The Canadian Factor

The decline is largely attributed to fewer Canadian visitors, a trend persisting since President Trump returned to office. His administration’s policies, such as a trade war with Canada and referring to Canada as the 51st state, have not helped matters.

Impact on the U.S. Job Market

Usha Haley, a professor at Wichita State University, points out the potential job losses in the tourism sector. “It’s labour-intensive and a big employer in many states,” she said. The ripple effect could hit municipal finances as well.

Current Tourism Trends and Future Prospects

Canadians traditionally form the largest group of international tourists to the U.S., making up 28 per cent of its 72.4 million visitors in 2024. Yet, recent data show a significant drop in return trips to the U.S. by air (24 per cent) and land (30 per cent).

Political Relations and Economic Deficits

Despite Trump’s claims of “great love” between the countries, tensions persist. In response to an anti-tariff ad from Ontario, Trump ended trade talks and threatened more tariffs. The U.S. now faces a nearly $70 billion travel trade deficit for 2025, shifting from its historical surplus.

Canadians Opting for Other Destinations

Many Canadians are choosing to spend their travel dollars elsewhere due to frustrations with the U.S. government. Rena Hans from Toronto, a snowbird with a condo in Florida, has opted not to return until Trump is out of office. She questions why she’d support a country with such policies and instead is visiting Costa Rica, Turks and Caicos, China, and Taiwan.

Border Security Concerns

Angus Reid’s poll found 70 per cent of Canadians uncomfortable traveling to the U.S. this winter. Top concerns include political climate and heightened security measures, like a new registration rule affecting Canadians staying over 29 days. This rule requires fingerprints and photographs at the land border, dissuading older snowbirds.

Strategies to Attract Canadians

In response, U.S. border states are trying various incentives. Regions like Buffalo and Seattle have launched campaigns to lure Canadians back. Discover Kalispell in Montana introduced the Canadian Welcome Pass, offering discounts to Canadian visitors.

Bryce Baker of Kalispell’s My Place Hotel reports a 40 per cent decline in Canadian guests. The hotel now offers a 26 per cent discount to Canadians, aiming to express appreciation and mitigate losses.

This decline in Canadian visitors underscores complex political ties and the significant economic interdependence between the two nations.

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