Canadian Tourism to the U.S. Declines Sharply, Harming American Businesses

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Tourism from Canada to the United States — once the largest source of international visitors — has dropped significantly in 2025, and the effects are now rippling through local economies and small businesses, especially in U.S. border states. jec.senate.gov+1

According to a new report from the U.S. Congress’s Joint Economic Committee, the number of Canadian cross‑border visits has fallen sharply this year, with passenger vehicle crossings down about 20% compared to the same period last year. Some states saw even larger declines, with Canadian visits to New Hampshire dropping roughly 30%. jec.senate.gov

Why the decline?
A mix of economic and political factors is discouraging Canadians from travelling south: rising travel costs, a weaker Canadian dollar, trade tensions, tariffs, and stricter U.S. border enforcement have all made cross‑border trips less appealing and more expensive for many Canadians. Travel And Tour World+1


Impact on U.S. Businesses

The tourism downturn is now showing up on Main Street and in local economies across border regions:

  • Empty hotel rooms and lower occupancy: Hotels that once filled up with Canadian guests now report far fewer bookings, shrinking revenue. Evrim Ağacı
  • Retail and services hit: Restaurants, shops, and entertainment venues — many of which depend on weekend trips or seasonal visits — are seeing noticeably fewer customers and reduced sales. jec.senate.gov
  • Job risks and revenue losses: Broader tourism data suggests the U.S. travel industry could lose billions in spending this year due to fewer international visitors, with Canadian tourists being a key contributor to that decline. Pax News

One border business owner remarked that the number of Canadian visitors this season was so low they could almost count them on one hand, underscoring just how dramatic the drop has been. Yahoo Finance


Broader Economic Consequences

Canada historically sends more visitors to the U.S. than any other country, and Canadians have contributed tens of billions in tourism spending in recent years. The decrease in travel this year not only hurts small businesses but also puts pressure on regional economies that rely on seasonal tourism. Pax News

U.S. travel associations warn that lost Canadian tourism dollars could translate into billions in reduced spending and threaten hundreds of thousands of jobs tied to hospitality and related sectors if the trend continues. Pax News


What’s Next

Some U.S. states and cities are trying to adjust by launching marketing campaigns and incentives to win back Canadian travelers, but whether these efforts can offset the decline remains unclear. Border communities are hoping for improved diplomatic relations and eased travel restrictions to restore confidence in cross‑border tourism — a major economic lifeline for many local businesses. CRE Daily


Summary

The drop in Canadian tourism to the United States in 2025 is more than a travel statistic: it’s a real economic burden for businesses that once thrived on Canadian visitors. From vacant hotel rooms to quieter restaurant floors, the decline highlights how shifts in travel habits and broader political and economic tensions can have wide‑ranging impacts on local economies and jobs.

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