- Canadian travel to the US dropped sharply in May 2025, with vehicle entries down 38.1% and air travel down 24.2%.
- The decline follows new US tariffs and stricter immigration rules, pushing more Canadians to visit other countries.
- A 10% drop in Canadian tourism could cost the US $2.1B in spending and 140,000 jobs, per the US Travel Association.
- US cities and states are trying to win back Canadian travelers, but so far, the trend continues downward.
Political Tensions Push Tourists Elsewhere
According to CoStar, Canadian tourism to the United States is dropping fast. The shift began after the US imposed new tariffs and cracked down on immigration earlier this year. According to Statistics Canada, vehicle re-entries from the US in May fell by 38.1% year-over-year. Air returns dropped 24.2% during the same period.
Meanwhile, more Canadians are choosing other destinations. The number of travelers returning from non-US countries rose by 9.8% in May.
Travel Decline Brings Economic Risk
This drop in travel is starting to hurt the US economy. Canadians make up about 25% of all international visitors to the US In 2024, they spent $20.5B.
Now, the US Travel Association warns that a 10% decline in Canadian tourism could lead to $2.1B in lost revenue. It could also put 140,000 tourism-related jobs at risk.
Border towns are already seeing the impact. In Bellingham, Washington, vehicle crossings from Canada have fallen by nearly 50%. This has hit local businesses hard.
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US Cities Try to Win Tourists Back
To combat the downturn, several states and cities have launched outreach campaigns. For example, California Governor Gavin Newsom appeared in a spring video message. He reminded Canadians of the state’s warm weather and welcoming spirit.
Elsewhere, New York’s Adirondacks region released a public statement. It assured Canadian visitors that they remain welcome despite rising political tensions. Bellingham officials also sent open letters inviting Canadians to return.
However, none of these efforts have reversed the trend so far.
Travel Declines on Both Sides
The slowdown goes both ways. In May, American visits to Canada also dropped. Car trips fell by 8%, while air arrivals dipped by 0.3%, according to Statistics Canada.
What’s Next
Unless the political climate improves, cross-border tourism could continue to suffer. Travel experts are urging leaders to address the diplomatic strain.
With global competition for tourists growing, the US risks losing more ground if the trend continues.
