US tourism faces $5.7B loss as Canadians stay home
Many Canadians continue to boycott travel to the United States, and the American economy is paying the price.
A US Travel Association report International tourism spending in the country is projected to decline by 3.2 percent for 2025, a loss of $5.7 billionLion compared to America For last year.
The association attributes the loss primarily to a decline in the number of Canadian visitors – a trend that has continued since U.S. President Donald Trump returned to office in January. Trade war breaks out with Canada and began Referring to the country as the 51st state,
In Latest data for October, Compared to the same period last year, the number of return trips among Canadians visiting the U.S. has declined by 24 per cent for air travel and 30 per cent for land travel.
Canadians traditionally make up the largest group of international tourists to the US, accounting for 28 percent of the total. 72.4 million visitors in 2024,
Usha Haley, a management professor at Wichita State University in Kansas, warns that the decline in tourism dollars threatens thousands of jobs.
“The tourism sector is labor intensive and it is a large employer in many states,” he said, adding that job losses could have an impact.
For example, he said, “Lower occupancy at hotels will impact labor demand and will impact tax collections, potentially impacting municipal finances.”
US President Donald Trump, sitting with Prime Minister Mark Carney, was asked about the decline in Canadian travel south of the border and said ‘Americans don’t want to buy cars made in Canada’ but said he thinks the issue ‘will be resolved’ because there is ‘a lot of love’ between the countries. Trump’s claim that the US has secured $17 trillion in new investment is widely disputed.
Last month, Trump said the Canadian tourism problem was “something that will be worked on. There’s still a lot of love between the two countries.”
However, since then, he has continued to foster contentious relations with Canada.
In Reply to an anti-tariff advertisement Initiated by the Ontario government, Trump broke off trade talks with Canada late last month. He also threatened to impose more tariffs on the country in addition to those imposed earlier this year.
Trump has said tariffs are necessary for the solution Wide trade deficit with Canada(The country exports more to the US than it imports,)
However, the US decline in international tourism has helped reduce the travel trade deficit, as more Americans are traveling abroad than internationally.National tourists visiting America
America has Historically enjoyed travel trade surplusBut for 2025, the travel association projects a deficit of nearly US$70 billion,
Many Canadians are avoiding visiting the US this winter
The travel association estimates international travel will grow again in 2026 due to the U.S. hosting the FIFA World Cup and the country’s 250th anniversary celebrations.
But there is no guarantee that Canadians angry at the Trump administration will change their stance.
Even though Toronto snowbird Rena Swan owns a condo in Florida, she is adamant that she will not return to the US until Trump is out of office.
“Why would I want to give money to a country whose president has said he wants to take over my country, and has erected massive trade barriers?” Hans asked.
Instead, she’s leaving for a trip to Costa Rica this weekend, followed by another trip to Turks and Caicos. She is planning to spend a month in China and Taiwan in the new year.
“There are a lot more places to go,” she said. “I can’t vote (in America), but I can vote with my dollar.”
New one angus reid pole Suggests that the swan is not alone. Of the 1,607 Canadians surveyed in late October, 70 per cent said they would be uncomfortable traveling to the US this winter.
The top three reasons respondents were staying away from the country were the current political climate of Canada, the US, and a determination to stand up for concerns. Security increased on the border During Trump’s immigration crackdown.
As for border issues, Swan says the Trump administration’s new registration requirement for long-term travelers is another hurdle. Rule, which came into effect in AprilIt has been ordered that certain foreigners, including Canadians, must register with the US government for any stay in the United States for more than 29 days.
This rule primarily affects land border travelers who, If they register at the borderPhotographs will be taken, fingerprints will be taken and each will be charged a fee of $30 US.
“To do this to people over 60 who are spending a lot of money to go to Florida for three months … it’s a ridiculous thing to do,” Swan said.
The US Department of Homeland Security told CBC News in an email that the registration rule is “consistent with the Trump Administration’s ongoing efforts to enhance the safety and security of the United States.”
Many Canadian snowbirds who crossed the US land border were told they needed to be photographed and fingerprinted as part of the new registration process.
US tourism groups offer incentives
US states near the Canadian border have already been hit hard by the decline in tourism. In response, several tourism organizations representing areas such as Buffalo, Seattle and upstate new york has launched a campaign Offering discounts and deals to lure Canadians back.
The latest to do so is Discover Kalispell. The tourism group represents Kalispell, a town and skiing destination in northwestern Montana, close to the Alberta border.
The organization says credit card spending by international visitors to the city increases year after year There was a 39 percent decline between January and September.
Discover Kalispell is designed to tackle the problem a canadian welcome pass Where more than a dozen businesses like restaurants and hotels are offering deals to Canadians until January 15, 2026.
“For years, Montana and Alberta have had a close relationship,” said Dianne Mettler, executive director of Discover Kalispell. told CBC Radio,
,We just wanted to give a little encouragement,” she said. “We’ve missed them.”
Just south of the Alberta-BC border, Kalispell, Mont., has announced a Canadian Welcome Pass, offering visitors coming from north of the 49th parallel discounts and deals. For nine consecutive months, both vehicle and air travel from Canada to the US has seen double-digit year-over-year declines.
My Place Hotel in Kalispell has seen a 40 per cent decline in Canadian customers year-over-year, according to general manager Bryce Baker.
“It definitely matters and it absolutely impacts our bottom line,” he said.
As part of the Welcome Pass, My Place Hotels is offering Canadians 26 per cent off room rates.
“I see it as a way to help and thank the people who are still coming down,” Baker said. “We want to make sure they understand that we really appreciate (them).”
