The U.S. tourism industry is seeing a notable decline in international visitors, particularly from Canada, driven by political tensions and trade policies.
Recent statistics reveal a 23 percent drop in Canadian road trips and a 40 percent fall in travel bookings, with these shifts attributed to political tensions and evolving trade policies.
Statistics Canada reports that the number of Canadians driving to the U.S. has dramatically decreased, with February showing a 23 percent reduction compared to the previous year. This decline follows former Prime Minister Justin Trudeau’s recommendation for Canadians to explore domestic travel options instead of visiting the U.S. due to tariffs imposed by the Trump administration.
With leisure bookings also down—February saw a 40 percent decrease in travel compared to the prior year—a survey by the North American research company Leger reported that nearly half of the Canadians polled said they were less likely to visit the U.S. this year, while 60 percent said they would spend their vacations within Canada.
The U.S. Travel Association estimates that the reduction in Canadian visitors alone could result in a $2.1 billion loss. Tourism-heavy regions such as Florida, California, and Nevada, which are particularly popular among Canadian tourists, are expected to be hit hardest by this decline.
Impacts of Declining International Arrivals in 2025
The broader impact of U.S. tariffs and the administration’s stance on international trade, however, could lead to a global slowdown of travel to the U.S.
According to Tourism Economics—which analyzes global travel data and economic impact—international travel to the U.S. is projected to decrease by 5.1 percent in 2025, a significant departure from an earlier prediction of an 8.8 percent increase.
Also noted in the same report and as reported by Fortune magazine, a projected 11 percent decrease in spending by international visitors will represent a loss of $18B this year.
You May Also Be Interested In…
US Tariffs Set to Shake Up Travel
