Tensions between Canada and the United States, fueled by controversial policies and tariffs, have led to a significant shift in travel patterns. The latest development in this strained relationship is a growing travel boycott, which could cost the U.S. economy up to $20 billion in 2024. With millions of Canadians canceling trips to the U.S., the travel and tourism sector is bracing for a crisis that will disproportionately affect certain states.
The Fallout: How the Travel Boycott Will Affect U.S. States
In 2024, Canada was the top source of foreign visitors to the United States, with over 20 million visits, generating $20.5 billion in spending. However, with heightened tensions and recent tariffs, Canadian visitors are staying home, leaving a substantial gap in the U.S. economy. According to the U.S. Travel Association, a 10% drop in Canadian tourism could lead to a loss of $2.1 billion and 14,000 job losses, with the potential for an even greater financial impact if the decline reaches 20%.
This massive reduction in Canadian visitors will be most felt in states that have historically attracted the largest numbers of Canadian tourists. Here’s a breakdown of the states expected to face the brunt of the loss:
Florida: The Hardest Hit by the Boycott
Florida is among the states set to suffer the most from the Canadian travel boycott. In 2024, nearly 3.3 million Canadians visited the state, making up around 27% of all international visitors. The tourism sector in Florida, which is crucial to the state’s economy, generated billions in revenue, with Canadian tourists contributing over $4 billion in spending. The loss of Canadian visitors will severely impact Florida’s retail, hospitality, and service industries, potentially leading to significant job losses.
California: A Major Loss for the Golden State
California, another top destination for Canadian travelers, is poised to feel the effects of the boycott as well. With over 1.8 million Canadian visitors in 2023, accounting for more than 12% of all international arrivals, the state’s economy has heavily relied on tourism spending. Canadian tourists contributed nearly $3.7 billion to California’s travel revenue in 2023. The impact of a drop in Canadian tourism will not only affect local businesses but also the state’s tax revenue, which has been a major contributor to public services.
New York: A Major Tourist Destination at Risk
New York, a global tourism hotspot, also faces significant economic fallout. In 2024, nearly 1.08 million Canadians visited the state, accounting for about 8.1% of the international segment. With Canadian tourists spending billions, a reduction in travel from this demographic will hurt businesses across the state, particularly those in the hospitality, entertainment, and retail sectors. The financial repercussions could also diminish the city’s vibrant tourism industry, which generates billions in direct spending and tax revenue.
Nevada and Texas: Struggling with Fewer Visitors
Nevada and Texas round out the top five states affected by the Canadian travel boycott. Nevada, particularly Las Vegas, relies heavily on Canadian visitors, with 1.7 million Canadians visiting in 2024 and spending over $1.4 billion. Texas, with 582,000 Canadian visitors in 2023, will also see a decline in travel revenue, with fewer tourists exploring its major attractions, such as Austin and Houston.
The Response: States Work to Rebuild Visitor Confidence
As the impact of the travel boycott becomes more evident, states like California are taking steps to encourage Canadians to return. California Governor Gavin Newsom and Visit California are launching a campaign aimed at re-establishing the Golden State as a welcoming destination for Canadian travelers. These efforts are part of a broader strategy to recover lost revenue and restore the U.S.-Canada tourism relationship.
A Wake-Up Call for U.S. Tourism
With a potential $20 billion loss on the horizon, U.S. states heavily reliant on Canadian tourism are facing an economic crisis. The travel boycott highlights the deepening diplomatic divide and the fragile nature of the U.S. tourism industry in the face of international tensions. As efforts to rebuild visitor confidence begin, it remains to be seen whether these measures will be enough to restore the flow of Canadian tourists to the U.S.
Stay tuned to Maple News Wire for the latest updates on the economic impacts of the Canadian travel boycott and how the U.S. is navigating this tourism crisis.
