Canada Surges in Tourism as U.S. Faces Declining Visitors

Canada is experiencing a remarkable boost in its tourism sector while the United States grapples with a significant decline in international visitors. Political tensions and economic uncertainties stemming from U.S. tariffs on Canadian goods, including aluminum and steel, have influenced travel patterns. As a result, many Canadians are choosing to vacation domestically, leading to record-breaking tourism figures in Canada.

The heightened border security and divisive politics under former U.S. President Donald Trump have contributed to a growing perception of Canada as a safer and more welcoming travel destination. According to Wayne Smith, director of the Institute for Hospitality and Tourism Management at Toronto Metropolitan University, increased barriers to travel in the U.S. have prompted Canadians to seek alternatives, with Canada emerging as a favorable option. “Because they’re putting up increasing barriers, it makes it increasingly challenging to go to the U.S. So you start to look for alternatives, and Canada is a reasonable alternative,” Smith stated.

As the U.S. tourism industry struggles, the impacts are stark. Between February and October, the number of return trips by Canadians to the U.S. decreased by 21 percent for air travel and 33.5 percent for land travel, as reported by Statistics Canada. The U.S. Travel Association anticipates a 3.2 percent decline in international tourism spending in the U.S. for 2025 compared to the previous year, translating to a loss of approximately $5.7 billion USD. This downturn is largely attributed to a significant decline in Canadian tourists, who represent the largest group of international visitors to the U.S.

The shift in travel habits has taken a toll on U.S. border communities. Laurie Trautman, director of the Border Policy Research Institute at Western Washington University, remarked on the devastating effects this has had on local businesses. “We’re getting decimated, our border communities in particular, by the lack of Canadian tourism,” she said, noting that many businesses have struggled to recover from the earlier pandemic-related downturn.

An Angus Reid poll conducted in late October revealed that 77 percent of Canadians now view the U.S. more negatively as a travel destination than in previous years. Concerns about the political climate, border security, and the trade war with the U.S. have contributed to this shift. Many Canadians are opting to travel domestically or explore other destinations, with 44 percent choosing to stay within their own province and 30 percent visiting another Canadian province.

This summer marked a historic period for Canadian tourism, with Destination Canada reporting an unprecedented increase of $3.3 billion (a 6 percent rise) in total tourism revenue from May to August. Notably, domestic tourism saw a significant increase of 7 percent. Smith indicated that the combination of political factors and a sense of national pride has led many Canadians to prioritize local travel. “You had a perfect sort of storm to make domestic tourism really rise, and powerfully, in Canada this year,” he noted.

While Canada has benefitted from the downturn in U.S. tourism, it has not come without its challenges. Data from Destination Canada shows that fewer Americans visited Canada this summer, resulting in a 1.7 percent decline in tourism dollars from American visitors. However, this was offset by an increase in overseas tourism, which rose by 2.4 percent, with spending from international visitors increasing by 10.4 percent.

A separate survey conducted by Context Research Group prior to the summer showed that over half of respondents from the U.K., France, and Germany were more likely to visit Canada due to the political climate in the U.S. Additionally, more than 90 percent viewed Canada as a friendly and safe travel destination, indicating a growing appeal among international tourists.

Looking ahead, the U.S. Travel Association projects a rebound in international travel by 2026, spurred by significant events such as the FIFA World Cup. Nonetheless, the association has expressed concerns about new visa fees that could discourage tourism. A proposed $250 “visa integrity fee” for non-immigrant visitors could further impact the willingness of travelers to visit the U.S.

As Canada continues to thrive in the tourism sector, the contrast with the U.S. highlights the significant influence of political and economic factors on travel behavior. The current trends suggest that Canada might maintain its advantage in attracting tourists in the foreseeable future, as long as the perception of safety and hospitality remains strong.