Canadians Reroute Travel Dollars Across the Atlantic

A growing number of Canadian travelers are skipping the United States in favour of Europe, marking a significant shift in North American travel behaviour in 2025. Recent data from Longwoods International reveals that 60% of Canadians are now less likely to visit the U.S. over the next year. Instead, many are redirecting their tourism dollars to European destinations, a trend reshaping transatlantic travel dynamics.

American Interest in Europe Wanes Amid Global Tensions

While European vacations have traditionally been a favourite among Americans, interest has noticeably declined this year. The European Travel Commission’s Long-Haul Travel Barometer shows only 33% of Americans plan to visit Europe between May and August 2025—a 7% drop from last year. High travel costs and a preference for domestic trips are major factors, but political concerns about representing the U.S. abroad also play a growing role.

Politics and Perception Drive Canadian Travel Decisions

Canadians’ cooling interest in U.S. travel is widely linked to political tensions. Discontent with the Trump administration’s trade and foreign policies has prompted many to cancel travel plans south of the border. According to the same Longwoods study, 36% of Canadians have scrapped previously booked U.S. trips. A CBC News report further confirms that Canadians now prefer destinations where they feel more welcome—Europe topping the list.

European Appeal Grows for Canadian Vacationers

For Canadians still eager to travel internationally, Europe is fast becoming the go-to option. Since early 2025, interest in European travel has surged by 23 percentage points. Currently, 37% of Canadian travelers say they intend to visit Europe during the peak summer months. Meanwhile, domestic travel within Canada is also thriving, with hotel occupancy rates reaching 76% nationwide in June—83% in Toronto and 87% in Vancouver, per CoStar Group data.

U.S. Tourism Industry Feels the Strain

The shift in Canadian travel patterns is already impacting U.S. tourism. States that historically depend on Canadian visitors are reporting declines in hotel bookings and retail sales. The Longwoods study indicates that just 42% of Canadians now see the U.S. as welcoming, and only 38% feel valued as tourists. As a result, American tourism hubs are losing revenue and foot traffic.

Billions at Stake if Trends Persist

If current travel sentiment holds, the U.S. could face major financial fallout. The World Travel & Tourism Council estimates the country may lose up to $12.5 billion in international visitor spending in 2025. Without targeted efforts to improve its global image and restore confidence among Canadian travelers, the U.S. risks losing one of its most dependable tourism markets to Europe.

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