Canadians traveler are bypassing the U.S. amid political tensions, choosing Mexico, the Caribbean, and domestic destinations, reshaping North American tourism.
Canadians Turn Away from U.S., Seek New Destinations
A growing number of Canadians are choosing to bypass the United States for their vacations, opting instead for Mexico, the Caribbean, and other international and domestic hotspots. This shift comes amid escalating political tensions, tariffs, and concerns over border scrutiny, leaving the U.S. travel industry facing a significant decline in Canadian visitors.
Industry Leaders Confirm Changing Travel Patterns
Executives from major travel companies like Airbnb, Hyatt, and Booking Holdings revealed during recent earnings calls that Canadian travel to the U.S. has dropped sharply. Airbnb’s CFO Ellie Mertz noted Canadians are traveling less to the U.S. but more to Mexico, Brazil, France, and Japan. Hyatt’s CEO Mark Hoplamazian described the trend as a “flyover,” with Canadians favoring all-inclusive resorts in the Bahamas over U.S. destinations. Booking Holdings’ CEO Glenn Fogel emphasized that while Canadians spend similarly, they are simply choosing different locations.
Airlines Feel the Impact
Delta and United Airlines report significant declines in Canadian bookings to the U.S., with United’s CEO Scott Kirby noting a 9% drop in Canadian passenger volumes year over year. Delta is considering reducing capacity in response to the downturn.
The Numbers Tell the Story
Statistics Canada data shows a nearly 32% drop in Canadian road trips to the U.S. in March 2025 compared to the previous year, with air travel down 13.5%. This decline threatens billions in U.S. tourism revenue and tens of thousands of jobs, as Canada remains the top source of inbound visitors to the U.S.
Political Tensions Drive Travel Decisions
Many Canadians cite President Donald Trump’s tariffs, controversial remarks about Canada, and increased border enforcement as reasons for avoiding U.S. travel. A Longwoods International study found 60% of Canadian adults are less likely to visit the U.S. due to these factors, with over a third canceling planned trips.
Canadians Embrace Domestic and Alternative International Travel
In response, Canadians are exploring more domestic destinations like Tofino, St. John’s, and Gaspésie, as well as international spots such as Cancun, Punta Cana, and even France and Japan. Expedia reports a surge in domestic travel bookings, reflecting a growing preference for closer-to-home vacations.
Economic Fallout and Future Outlook
The U.S. Travel Association warns that even a 10% decline in Canadian tourism could cost the U.S. $2.1 billion annually, with current trends potentially leading to losses exceeding $6 billion. While some hope for a rebound, industry experts suggest the shift may be long-lasting, reshaping North American travel dynamics.
Bottom Line:
As Canadians rethink their travel plans, the U.S. faces a tourism challenge unlike any before. Meanwhile, Mexico, the Caribbean, and Canada itself are reaping the benefits of this new travel landscape.
