Canada’s tourism revenue surges as U.S. visitor spending drops, driven by safety concerns, political tensions, and shifting travel preferences in 2025.
Canada Surges Ahead in Tourism Amid U.S. Travel Decline
A Sector Thriving Despite Trade Tensions
Canada’s ongoing trade dispute with the United States—fueled by tariffs on steel, aluminum and persistent economic uncertainty—has placed pressure on several industries. Yet tourism has emerged as a rare success story. As international visitors rethink travel to the U.S. due to political polarization, stricter border enforcement, and safety concerns, Canada is experiencing a record-setting rebound.
Shifting Travel Patterns Across the Border
Newly released travel data shows a sharp decline in Canadian trips to the United States throughout 2025. Return trips by Canadians fell by 21% for air travel and 33.5% for land crossings, a trend linked directly to the political climate under President Trump and his administration’s tightened border controls.
Meanwhile, U.S. tourism authorities now expect a 3.2% drop in international visitor spending—a loss projected at $5.7 billion USD—as Canadian travellers, historically the U.S.’s largest foreign visitor group, increasingly stay away.
Political Climate Reshaping Traveller Choices
A recent Angus Reid survey reveals that 77% of Canadians have developed a more negative perception of travelling to the U.S. this year. Respondents cite concerns about border crackdowns, rising entry barriers, and a desire to support Canada amid ongoing trade tensions. High-profile incidents involving ICE detainments and restrictive entry procedures have further amplified a sense of unpredictability for cross-border trips.
Canada’s Tourism Boom Takes Centre Stage
As Canadians rethink U.S. travel, much of that spending has been redirected domestically. Destination Canada reports $3.3 billion in additional tourism revenue from May to August alone—an unprecedented surge driven by both local and international visitors.
Domestic tourism rose 7%, with travellers favouring provincial and cross-Canada trips over U.S. vacations. Overseas spending increased as well, climbing 10.4%, even as U.S. visitors dipped slightly.
Global Travellers Drawn North of the 49th Parallel
Surveys conducted in Europe earlier this year indicate that Canada’s reputation for safety, stability, and friendliness is playing a substantial role in attracting overseas tourists. Over 52% of European respondents said the political climate in the U.S. made them more inclined to choose Canada.
Industry researchers note that Canada is currently positioned as a top global destination—benefiting indirectly from tensions affecting U.S.–Europe relations and concerns about border policies south of the border.
Looking Ahead to 2026 and Global Events
While the U.S. anticipates a rebound in 2026 due to hosting FIFA World Cup matches and its 250th anniversary celebrations, new barriers could complicate that recovery. A planned $250 “visa integrity fee” for certain international visitors has raised concerns that it may further suppress foreign travel.
Canada, also hosting World Cup games, is expected to capitalize on global attention, especially as travellers seek destinations perceived as secure, welcoming, and culturally vibrant.
A Rare Canadian Advantage in a Trade-Strained Era
As trade disputes continue to unsettle economic sectors across North America, tourism stands out as a domain where Canada is not only weathering the storm but thriving. Experts say that unless the political and border environment in the U.S. shifts significantly, Canada may continue to hold a competitive edge in the North American travel landscape.
