Canadian Travel Pullback Puts Pressure on U.S. Tourism Industry

The U.S. tourism industry is facing growing pressure as fewer Canadians travel south of the border, prompting states, cities and major destinations to step up campaigns aimed at winning back visitors from Canada, traditionally the largest source of international overnight travelers to the United States. According to The Associated Press, the informal travel boycott that emerged amid political and trade tensions between the two countries is proving difficult for the industry to reverse.

Statistics Canada reported that Canadian residents made 23.1 million trips involving visits to the United States in 2025, down 23.5% from 2024. Spending on those trips fell 15.1% to C$18.8 billion, while travel to overseas destinations rose 10.2% over the same period.

The trend continued into 2026. During the first quarter, Canadians made 5.5 million trips to the United States, a 10.6% year-over-year decline, while spending there dropped 13.6% to C$5 billion. At the same time, Canadian trips to overseas destinations increased by 6.2%.

Statistics Canada has described the broader change as a persistent shift away from the United States in Canadian travel preferences. Leisure travel has been particularly affected, with Canadians increasingly choosing domestic and overseas destinations instead of U.S. trips.

The decline comes amid renewed political and trade tensions between Ottawa and Washington. The Associated Press reported that some Canadian travelers said their decision to avoid the United States was influenced not only by exchange rates and travel costs, but also by the political climate and deteriorating relationship between the two countries.

U.S. tourism authorities are responding with targeted promotions. New York launched its “NY Loves Canada” campaign with discounts at hotels, restaurants and attractions, while some downtown Las Vegas hotels have offered Canadian visitors a one-for-one exchange rate between the Canadian and U.S. dollars. Las Vegas tourism officials have also travelled to Canada to meet travel advisers, tour operators and airline representatives.

At the national level, Brand USA, the country’s tourism marketing organization, is bringing its Travel Week trade event to Canada for the first time in October as part of a wider effort to rebuild demand from Canadian travelers.

Some destinations have already recorded significant declines. Florida saw a 7% drop in Canadian visitors in 2025, while Visit California estimated that Canadian travel to the state fell by about 20%.

The challenge extends beyond the Canadian market. Reuters reported that total international travel to the United States fell 5.5% in 2025 to about 68 million visitors, while overseas arrivals remained down 4.7% through July 2026 despite a temporary boost from the FIFA World Cup. President Donald Trump met major travel-industry executives in early September to discuss ways to reverse the decline.

Attention is now turning to the coming winter season, when large numbers of Canadian snowbirds traditionally travel to warmer U.S. destinations including Florida, Arizona and California. Tourism officials will be watching those months closely for signs of whether the Canadian pullback continues into another season.