Many Canadians are refraining from traveling to the United States, impacting the U.S. economy significantly. According to a recent report from the U.S. Travel Association, international tourism spending in the country is expected to decrease by 3.2% in 2025, resulting in a loss of $5.7 billion compared to the previous year.
The decline in Canadian visitors is primarily responsible for this loss, a trend that began when U.S. President Donald Trump resumed office and initiated a trade dispute with Canada, even going as far as referring to Canada as the 51st state. Recent data from October shows a 24% drop in return trips by Canadians traveling to the U.S. by air and a 30% drop for land travel compared to the same period last year.
Canadians typically constitute the largest group of international tourists to the U.S., making up 28% of the 72.4 million visitors in 2024. Usha Haley, a management professor at Wichita State University in Kansas, warns that the decrease in tourism spending threatens numerous jobs in the sector, which is a significant employer in many states. She highlights that reduced hotel occupancy affects labor demand, tax collection, and municipal finances.
Despite President Trump’s optimism about resolving the Canadian tourism issue, recent actions have strained relations further. Trump halted trade talks with Canada in response to an anti-tariff ad by the Ontario government and threatened additional tariffs. The U.S.’s decline in international tourism has led to a travel trade deficit, with more Americans traveling abroad than foreign visitors coming to the U.S. For 2025, the Travel Association projects a deficit of nearly $70 billion.
Looking ahead, the Travel Association anticipates a rebound in international travel in 2026, driven by events like the FIFA World Cup and the U.S.’s 250th-anniversary celebrations. However, many Canadians, like Rena Hans from Toronto, remain hesitant to visit the U.S. due to political tensions. A recent Angus Reid poll revealed that 70% of Canadians surveyed would avoid traveling to the U.S. this winter, citing concerns about political climate, border security, and trade barriers.
To counter the decline in Canadian visitors, tourism organizations in U.S. regions near the Canadian border, such as Buffalo and Seattle, have launched campaigns offering discounts to attract Canadians back. Kalispell, a city in Montana close to the Alberta border, has introduced a “Canadian Welcome Pass” with deals from local businesses to entice Canadian travelers. The initiative aims to rebuild the close relationship between Montana and Alberta and encourage Canadians to visit the city.
Kalispell’s My Place Hotel has experienced a significant drop in Canadian customers, prompting them to offer discounts and perks to attract visitors. General manager Bryce Baker acknowledges the impact of the decline in Canadian visitors on their business and expresses gratitude to those who continue to visit. The hotel is extending a 26% discount on room rates to Canadian guests as part of the Welcome Pass program.
