U.S. tourism faces $5.7B US loss as Canadians proceed to remain residence

Many Canadians proceed to boycott journey to the United States, and the U.S. economic system is paying the value. 

A U.S. Travel Association report forecasts a 3.2 per cent decline in worldwide tourism spending within the nation for 2025, a lack of $5.7 billion US in contrast to the earlier yr. 

The affiliation largely attributes the loss to a decline within the variety of Canadian guests — a development that has persevered since U.S. President Donald Trump returned to workplace in January, sparked a commerce battle with Canada and started referring to the country as the 51st state. 

In the latest data for October, the variety of return journeys amongst Canadians travelling to the U.S. dropped by 24 per cent for air journey and by 30 per cent for land journey, in contrast with the identical time final yr. That marks ten straight months

Canadians historically make up the biggest group of worldwide vacationers to the U.S., totalling 28 per cent of its 72.4 million visitors in 2024. 

Usha Haley, a professor of administration at Wichita State University in Kansas, warns that the drop in tourism {dollars} threatens 1000’s of jobs. 

“The tourism sector is labour-intensive and it’s a big employer in many states,” she mentioned, including that job losses may have a knock-on impact. 

For instance, she mentioned, “The reduced occupancy in hotels will impact labour demand and that’ll impact tax collection, which potentially impacts municipal finances.”

Last month, Trump said the Canadian tourism problem was “something that will get worked out. There’s still great love between the two countries.”

However, since then, he has continued to foster contentious relations with Canada.

In response to an anti-tariff advert launched by the Ontario authorities, Trump broke off commerce talks with Canada late final month. He additionally threatened to hit the nation with extra tariffs on high of those he imposed earlier this yr. 

Trump has mentioned the tariffs are essential to treatment an expansive commerce deficit with Canada. (The nation exports extra to the U.S. than it imports.)

However, America’s decline in worldwide tourism has helped gas a journey commerce deficit, as extra Americans are travelling overseas than international vacationers are visiting the U.S.

The U.S. has historically enjoyed a travel trade surplus. But for 2025, the Travel Association forecasts a deficit of practically $70 billion US. 

Haley hopes the large deficit will grab the government’s attention “as the current U.S. administration is so worried about trade balances.”

Many Canadians avoiding U.S. this winter

The Travel Association predicts international travel will rebound in 2026, driven by the U.S. hosting the FIFA World Cup and the country’s 250th anniversary celebrations.

But there are no guarantees Canadians upset about the Trump administration will reverse course. 

Even though snowbird Rena Hans of Toronto owns a condo in Florida, she’s adamant she won’t return to the U.S. until Trump is out of office. 

“Why would I want to give money to a country whose president has stated that they want to annex my country, and has put in massive trade barriers?” Hans asked.

Instead, she’s leaving this weekend for a trip to Costa Rica, followed by another one to Turks and Caicos. In the new year, she plans to spend a month in China and Taiwan. 

“There’s a lot of other places to go,” she said. “I can’t vote [in the U.S.], but I can vote with my dollars.”

A new Angus Reid poll suggests Hans will not be alone. Of 1,607 Canadians surveyed in late October, 70 per cent mentioned they’d be uncomfortable travelling to the U.S. this winter. 

Respondents’ high three causes for avoiding the nation have been a resolve to face up for Canada, America’s present political local weather, and considerations about heightened safety on the border throughout Trump’s immigration crackdown. 

In regard to frame points, Hans says the Trump administration’s new registration requirement for long-stay travellers is one other deterrent. The rule, which took impact in April, mandates that sure foreigners, together with Canadians, staying longer within the United States for greater than 29 days should register with the united statesgovernment. 

The rule primarily impacts land border travellers who, in the event that they register on the border, will probably be photographed, fingerprinted and charged $30 US every.

“To be doing it for people that are over the age of 60 that are spending a great deal of money to go down to Florida for three months … it’s a ridiculous thing,” mentioned Hans.

The U.S. Department of Homeland Security advised CBC News in an electronic mail that the registration rule “aligns with the Trump administration’s ongoing efforts to enhance the safety and security of the United States.”

U.S. tourism groups offer incentives

U.S. states near the Canadian border have already been hit hard by the tourism decline. In response, several tourism organizations representing regions such as Buffalo, Seattle and Upstate New York have launched campaigns offering discounts and deals to woo back Canadians.

The latest to do so is Discover Kalispell. The tourism group represents Kalispell, a city and skiing destination in northwest Montana, close to the Alberta border. 

The organization says year-over-year credit card spending by international visitors in the city between January and September declined by 39 per cent. 

To combat the problem, Discover Kalispell has created a Canadian Welcome Pass the place greater than a dozen companies like eating places and inns are providing offers for Canadians via Jan. 15, 2026.

“For years, Montana and Alberta have enjoyed a close relationship, Diane Medler, executive director of Discover Kalispell told CBC Radio.

“We just wanted to provide a little incentive,” she said. “We’ve missed them.”

Kalispell’s My Place Hotel has seen a 40 per cent year-over-year drop in Canadian customers, 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 Hotel is offering a 26 per cent discount on room rates to Canadians. 

“I look at it as a way to help, and to thank the people that are still coming down,” mentioned Baker. “We want to make sure that they understand that we really appreciate [them].”