Recent changes in trade relations between Canada and the U.S. have significantly altered travel trends, impacting multiple industries and reshaping popular tourist destinations.
Declining Canadian Travel to the U.S.
According to Statistics Canada, the number of Canadians traveling to the United States has declined in recent months. In February 2025, car trips from Canada to the U.S. dropped by 23% compared to the same month in 2024, marking the second consecutive month of year-over-year declines in border crossings.
The shift is attributed to the trade policies introduced by President Donald Trump. Reuters reports that a 25% tariff imposed on Canadian goods has affected consumer spending and cross-border tourism, prompting many Canadians to rethink their travel plans. A survey by the Canadian firm Leger found that 59% of Canadians are less likely to visit the U.S. in 2025 than in 2024.
Public sentiment has also played a role. According to a survey by the Angus Reid Institute, 65% of Canadians are actively avoiding travel to the U.S., while 67% are boycotting American-made products. This shift is evident in declining travel bookings to major U.S. destinations, particularly Florida, Arizona, and California.
Economic Impact on the U.S. Travel Industry
The decrease in Canadian tourism could have significant financial consequences for the U.S. economy. The U.S. Travel Association warns that a 10% drop in Canadian visitors could result in losses of up to $2.1 billion in revenue and impact roughly 14,000 jobs in the tourism sector.
Border towns and travel hubs are already feeling the effects. The U.S. Customs and Border Protection Agency, cited by Reuters, reported an 18% decrease in vehicle crossings at major entry points like the Ambassador Bridge, which connects Detroit and Windsor. Local businesses—including restaurants, retail stores, and gas stations—are experiencing reduced Canadian customer traffic.
Impact on Airlines and Tourism Operators
The decline in Canadian visitors is also affecting airlines and travel companies. Reuters reported that Air Canada has reduced its flight capacity to leisure destinations like Las Vegas and Florida due to waning demand. Similarly, WestJet’s CEO told CTV News that Canadian travel to the U.S. has fallen by 25% since the tariff announcement.
Tour operators are seeing a shift in travel preferences. According to Bloomberg, the Association of Canadian Travel Agents reported a 15% increase in bookings for European destinations in early 2025, while U.S. travel bookings have declined at a similar rate. Travel agencies in Toronto have noted rising interest in destinations such as Lisbon, Barcelona, and Paris.
Where Are Canadian Tourists Going Instead?
Other destinations are benefiting from Canada’s reduced interest in U.S. travel. Business Insider reports that Canadian tourism to Mexico and the Caribbean is rising as travelers seek alternatives.
Luxury resorts in Bermuda, such as Hamilton Princess & Beach Club, have seen a surge in inquiries from Canadian clients, expecting a 20% revenue boost from this market.
Mexico has also gained Canadian visitors. The country’s Ministry of Tourism reported a 12% increase in Canadian arrivals during the first quarter of 2025 compared to the previous year. Popular destinations like Cancún, Riviera Maya, and Puerto Vallarta are experiencing notable growth. Airlines such as Air Transat and WestJet have expanded direct flight offerings between Canada and Mexico to accommodate rising demand.
Political Tensions Shaping Travel Decisions
Political factors are further influencing Canadian travel habits. According to Bloomberg, statements from Trump regarding a potential annexation of Canada have fueled nationalist sentiment, encouraging Canadians to prioritize local and non-U.S. travel.
The Canadian government has also taken measures to support domestic tourism. Reuters reports that Prime Minister Mark Carney’s administration has introduced tax incentives for Canadians who travel within the country. Provinces like British Columbia and Quebec have launched promotional campaigns to boost local tourism and counteract the decline in U.S. travel.
How the U.S. is Responding
In response to declining Canadian tourism, U.S. travel organizations are adjusting their marketing strategies. Reuters reports that Discover the Palm Beaches in Florida has shifted its promotional focus toward Toronto, offering special discounts to attract Canadian visitors.
Similarly, the Thousand Islands International Tourism Council is redesigning its campaigns to highlight U.S. attractions without emphasizing cross-border relations.
The Niagara region has also seen a drop in Canadian visitors. According to Business Insider, crossings at the four international bridges in the area fell by over 14% in February compared to the previous year, while website traffic from Canadian users declined by 45%.
As trade tensions continue, travel trends suggest that Canadians are increasingly looking beyond the U.S. for their vacations, benefiting alternative destinations while challenging the U.S. tourism industry.