The Tourism Reality Check: Canadians Took Their Money Elsewhere... And It Shows
Trade tensions, political rhetoric, and simple consumer choice are reshaping North American travel... with ripple effects nobody can ignore.
Every once in a while, numbers cut through the noise better than…
any political speech ever could.
This is one of those moments.
For decades, Canadian travelers have been a quiet pillar of the U.S. tourism economy… snowbirds, weekend shoppers, ski visitors, Vegas tourists, Disney families. Reliable. Predictable. Profitable.
Then the relationship changed.
And the data moved with it.
By late 2025, international travel to the United States had dropped about 5.4% overall, driven heavily by roughly 4 million fewer Canadian visits — a decline of about 22% compared with the previous year. That’s not a rounding error. That’s a structural shift.
The trend didn’t stop there.
Canadian car travel to the U.S. fell 27% in January.
It marked the 12th straight month of year-over-year declines in Canadian travel south of the border.
Meanwhile, American visits to Canada stayed roughly flat, which tells you something important: this wasn’t about affordability alone.
When behaviour changes in only one direction, there’s usually a reason.
Politics Has Economic Consequences
Trade disputes, tariff battles, and rhetoric about annexation or turning Canada into a “51st state” didn’t land as harmless jokes up here.
Consumers notice tone.
They notice respect.
And they vote with their wallets.
Surveys suggest 76% of Canadian travelers are now less inclined to visit the U.S., a jump of nearly 30 percentage points from the previous year.
That’s not temporary irritation. That’s sentiment.
And sentiment drives markets.
Real Businesses Are Feeling It
Consider northern U.S. ski regions… places that rely heavily on Canadian visitors.
One Vermont resort operator reportedly called hundreds of Canadian season-pass holders who chose not to return. The explanation was consistent… political tensions and national rhetoric made people uncomfortable spending money there.
Those resorts don’t just lose lift tickets.
They lose restaurant revenue, hotel stays, conferences, tournaments, weddings… entire economic ecosystems.
Tourism isn’t one industry. It’s dozens stacked together.
The Money Didn’t Disappear — It Moved
Here’s the part many analysts miss.
Canadians didn’t stop travelling.
They just changed destinations.
Travel agencies report significant shifts… including families who once booked U.S. theme-park trips now choosing Europe instead.
Mexico is seeing one of the biggest gains.
For the first time on record…
Canadians overtook Americans as the top international visitors to Mexico.
The Toronto–Cancún route became the busiest international air route into the country.
Major U.S. routes to Cancún saw declines (Chicago down ~11.7%, Dallas down ~4.5%, Atlanta down ~2%).
Tourism demand didn’t shrink. It rebalanced.
That’s what markets do when trust shifts.
The Broader Warning Signs
The U.S. travel sector is also facing macro pressure.
Industry forecasts point toward a travel trade deficit approaching $70 billion…meaning Americans are spending more abroad than foreign visitors spend inside the United States.
Even iconic destinations are noticing.
Las Vegas tourism campaigns have recently targeted Canadians directly after reported double-digit declines… including roughly a 50% drop in Canadian visitors in some periods.
When Vegas starts chasing your business, you know the equation changed.
Meanwhile, Canada Benefits
Canada’s own tourism sector had a strong year, with 2025 reportedly the best tourism year in national history.
That’s partly cyclical… Canada peaks in summer… but momentum matters. Once travelers form new habits, they often stick.
The deeper lesson isn’t nationalism.
It’s leverage.
Canadians sometimes underestimate how economically important they are internationally. But when millions of travelers redirect spending, industries notice quickly.
You don’t need to shout to have influence.
You just need to choose differently.
The Bottom Line
Tourism flows follow three things…
Comfort
Perception
Relationships
Damage any one of those, and demand moves.
Right now, it has.
The Recap…
Canadians didn’t stop travelling.
They just stopped going south.
The numbers are real. The impact is measurable.
And the lesson is bigger than tourism.
New piece just dropped.
The Gut Punch…
Money goes where it feels welcome.
That’s not politics. That’s human nature.
Source Credit:
Source: Compiled from North American tourism data reported in major media and industry forecasts (2024–2026).
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#CanadaStrong
Here in Merida, Yucatan, Mexico I carry a man-purse with a Canadian flag attached with Velcro to the flap. Mexicans here are always polite and "buen dia" is pretty standard on the streets. When they see the flag I get a smile with the greeting. Some who have been to Canada stop for a quick chat. They ask where I'm from, tell me where they've been. I like that.
A lot of Canadians skipped US vacations & vacationed in some of the far reaching Areas of Canada. Many went to Mexico, or at least, my family haha. Personally I check labels on EVERYTHING, Canadian made, I will pay double if I have to, to support my country. If there's a US label, it goes back on the shelf. I have stopped USA shopping online as well & choose other countries to support :) Canada Strong!!!! Yaye!