Many Canadians are choosing to avoid traveling to the United States, and this decision is impacting the U.S. economy. According to a report from the U.S. Travel Association, international tourism spending in the U.S. is projected to decrease by 3.2% in 2025, resulting in a loss of $5.7 billion compared to the previous year.
The decline in Canadian visitors is a significant factor contributing to this loss. The number of return trips by Canadians to the U.S. has decreased by 24% for air travel and 30% for land travel compared to the same period last year. Canadians typically make up a substantial portion of international tourists in the U.S., constituting 28% of the 72.4 million visitors in 2024.
This decrease in tourism spending is concerning for U.S. employment, as the tourism sector is a major employer in many states. Usha Haley, a management professor at Wichita State University, emphasizes that job losses in the tourism industry could have a ripple effect, affecting labor demand, tax collection, and municipal finances.
Despite U.S. President Donald Trump’s reassurances that the tourism issues with Canada will be resolved, ongoing trade tensions have continued to strain relations between the two countries. Trump’s imposition of tariffs and trade disputes have further exacerbated the situation.
The U.S. is facing a travel trade deficit in 2025, with the U.S. Travel Association forecasting a deficit of nearly $70 billion. This deficit has raised concerns about the current administration’s focus on trade balances.
Looking ahead, the Travel Association anticipates a rebound in international travel in 2026, driven by events such as the FIFA World Cup and the U.S.’s 250th anniversary celebrations. However, some Canadians remain hesitant about traveling to the U.S. due to political and security concerns, as well as new registration requirements for long-stay travelers.
To entice Canadian travelers back, tourism organizations in U.S. states near the Canadian border have launched campaigns offering discounts and deals. Discover Kalispell, representing a city in Montana, has introduced a Canadian Welcome Pass with various businesses providing special offers to Canadians until January 15, 2026.
The decline in Canadian visitors has affected businesses like My Place Hotel in Kalispell, with a 40% drop in Canadian customers. The hotel is offering discounts to Canadian guests as part of efforts to show appreciation for those still choosing to visit.