In 2025, several U.S. border states, including New England, North Dakota, Minnesota, and New York, are experiencing a notable decrease in Canadian visitors. This trend is significantly affecting the American travel economy. Regions that once relied heavily on Canadian tourism now face reduced revenues, lower hotel occupancy, and a drop in spending across retail and dining sectors. The shift is attributed to various factors, including political tensions, economic challenges, and evolving travel preferences among Canadians. This decline is leading to job losses and business closures in areas traditionally supported by cross-border tourism.
Key Takeaways
- Canadian tourist visits to the U.S. dropped by 16.8% from January to May 2025 compared to 2024.
- U.S. border states like New York, Minnesota, and North Dakota are most affected by the decline.
- Factors include political tensions, stricter immigration, a weaker Canadian dollar, and changing travel preferences.
- The decline could result in a $2.1 billion loss in spending and 140,000 job losses.
- U.S. states are increasing marketing efforts, seeking policy changes, and promoting domestic tourism to mitigate impacts.
The Current State of Canadian Tourism to the U.S.
Canada has historically been a major source of international tourists for the United States. Millions of Canadians have traveled south for vacations, business trips, and leisure activities each year. However, recent data for 2025 shows a significant downturn in these visits.
According to the U.S. Department of Commerce’s International Trade Administration, the number of Canadian visitors decreased by 16.8% from January to May 2025. This compares to the same period in 2024. This specific decline is part of a broader trend, as overall international tourism to the U.S. has seen a slight decrease of 2.4%.
Key Statistic
From January to May 2025, Canadian tourist arrivals in the U.S. fell by 16.8% compared to the same period in 2024. This makes Canada a leading country in reducing visits to the U.S.
The reduction in Canadian travel raises concerns for the U.S. economy. This is especially true for regions that depend heavily on tourism revenue. Fewer Canadian visitors mean less money spent in hotels, restaurants, and retail stores.
Reasons Behind the Decline
Several intertwined factors contribute to the reduction in Canadian tourism to the United States. These include political dynamics, changes in immigration policy, economic conditions, and shifting travel choices.
Political and Trade Tensions
One primary reason for fewer Canadian tourists is the political climate between the two nations. In recent years, trade disputes and tariffs have created strain in U.S.-Canada relations. U.S. trade policies, such as tariffs on Canadian goods, have led to higher costs for Canadians when traveling to the U.S.
These increased expenses can discourage Canadians from choosing the U.S. as a destination. When travel becomes more expensive, visitors often look for more affordable alternatives.
Stricter Immigration Policies
The United States has also implemented tighter immigration policies. These include stricter visa and border entry requirements. Such measures can act as a deterrent for Canadian tourists.
The added complexity and uncertainty at border crossings make many Canadians reconsider their travel plans to the U.S. Streamlined processes are often preferred by international travelers.
Economic Factors and Exchange Rates
Economic conditions play a significant role, particularly the exchange rate between the U.S. and Canadian dollar. When the Canadian dollar is weaker against the U.S. dollar, travel to the U.S. becomes more costly.
For many Canadians, this means that U.S. vacations are less affordable. They may then opt for different destinations that offer better value for their money.
Changing Travel Preferences
Canadians are also increasingly choosing to vacation in other countries or within Canada itself. Domestic tourism has grown, driven by a desire to explore local destinations. Many Canadians are discovering the beauty of their own national parks, cities, and landscapes.
Additionally, other international destinations, particularly in Europe and Asia, have become more appealing. This draws Canadian travelers away from traditional U.S. visits.
Impact on U.S. Border States
The tourism slump affects U.S. border states most severely. Regions that have historically relied on Canadian visitors are now struggling. States like New York, Minnesota, North Dakota, and those in New England are finding it difficult to maintain previous tourism levels.
In these areas, Canadian tourists have been a major source of income for hotels, restaurants, retailers, and various other businesses.
New York State
Upstate New York has experienced a significant drop in Canadian visitors. For example, in July 2025, the number of Canadians crossing the border into New York fell by 22%. This represents nearly 500,000 fewer travelers compared to the previous year.
Cities such as Buffalo and Rochester, where Canadians formed a large portion of the tourist population, have felt this decrease acutely. Local businesses that depend on Canadian customers are facing financial challenges and struggling to recover lost revenue.
Minnesota
Minnesota has also felt the effects of reduced Canadian tourism. In 2025, approximately 20% of the state's tourism revenue historically came from Canadian visitors. As these numbers declined, this income stream decreased significantly.
Hotels and other accommodations reported fewer bookings from Canadian travelers. Local businesses are adjusting their marketing strategies. Tourism boards are considering new markets or increasing efforts to attract domestic tourists to compensate for the loss.
North Dakota
North Dakota, another state highly dependent on Canadian tourism, recorded a 14.2% decline in border crossings in 2025. This figure is compared to the same period in 2024. Local tourism businesses have been severely impacted by this drop.
The state is working to adapt by focusing more on attracting tourists from other U.S. regions. It is also improving its marketing efforts within Canada. However, the economic effects of this decline are still present across the state.
New England States
New England Tourism Overview
New England comprises six states: Massachusetts, Connecticut, New Hampshire, Maine, Vermont, and Rhode Island. Known for its rich history, diverse landscapes, and vibrant cities, it attracts visitors year-round. Tourism is a key industry, with visitors drawn to fall foliage, historic sites, and coastal attractions.
While New England has seen overall tourism growth in recent years, the specific impact of the Canadian visitor slump is a new challenge for 2025. Massachusetts, for instance, saw over 52 million visitors in 2023, spending $23.6 billion, a 5.3% increase from the previous year. This generated $2.3 billion in state and local taxes and supported over 154,000 jobs.
Connecticut welcomed 70 million visitors in 2024, a 3.1% increase, with spending reaching $11.6 billion. New Hampshire anticipates over 45 million visitors in the coming year, drawn to outdoor activities like skiing and hiking. Vermont is preparing for a strong winter season in 2024-2025, focusing on ski tourism.
Maine and Rhode Island, while smaller in visitor numbers, are also important contributors. Maine is known for its coastline and seafood, while Rhode Island offers beaches and history. Both states are enhancing infrastructure to attract more visitors. The decline in Canadian visitors means these growth projections might need adjustment, particularly for border areas within these states.
Economic Consequences of Reduced Canadian Tourism
The decline in Canadian tourism to the U.S. has significant economic implications. The U.S. Travel Association estimates that a 10% drop in Canadian tourism could lead to a loss of $2.1 billion in spending. This would also result in the loss of approximately 140,000 jobs across various sectors.
These sectors include hospitality, retail, and transportation. Many border communities are especially vulnerable. They rely heavily on Canadian tourists for their livelihoods. The loss of business affects not only hotels and restaurants but also jobs directly and indirectly related to tourism, such as drivers, tour guides, and retail staff.
"The ripple effect of fewer Canadian visitors extends far beyond direct tourism businesses, impacting local economies and job markets across border regions," states a recent economic analysis.
As Canadian tourism continues to decline, more workers in these regions may face job insecurity. This situation highlights the need for effective strategies to attract new visitors or retain existing ones.
Strategies for Recovery and Future Growth
Despite the challenges, the U.S. can take several steps to recover lost tourism revenue and attract more international visitors, including Canadians. These strategies focus on marketing, policy adjustments, and diversification.
Enhanced Marketing Efforts
One crucial measure is to increase marketing efforts. Tourism boards in U.S. border states should target Canadian tourists with special promotions, discounts, and specific marketing campaigns. These efforts should aim to make U.S. travel more affordable and accessible for Canadians, especially given the weaker Canadian dollar.
Additionally, U.S. states should collaborate with their Canadian counterparts to build stronger cross-border tourism partnerships. Such partnerships can help boost travel between the two countries and restore the flow of Canadian tourists.
Policy Changes and Economic Relations
It is also important for local governments to advocate for changes in U.S. immigration policies. The goal is to make travel easier for Canadians. Streamlining border procedures, reducing visa costs, and offering visa waivers for Canadian tourists could help increase visitation.
Furthermore, relaxing trade tariffs and improving overall economic relations with Canada would create a more favorable environment for tourism between the two nations.
Focus on Domestic Tourism
To reduce dependence on international visitors, U.S. border states should also look to domestic tourism. Creating new attractions, events, and experiences designed to draw U.S. citizens to these regions could help offset the loss of Canadian visitors.
Many U.S. states have already launched campaigns aimed at encouraging domestic travel within their borders. This approach diversifies the tourism base and provides greater resilience against international fluctuations.
Tourism in New England by the Numbers
- Massachusetts (2023): 52 million visitors, $23.6 billion in spending, 154,000 jobs supported.
- Connecticut (2024): 70 million visitors, $11.6 billion in spending.
- New Hampshire (2025 est.): Over 45 million visitors expected.
Future Outlook for New England Tourism
New England's tourism industry is set to continue its upward trend into 2025, despite the regional challenge of Canadian visitor decline. While specific projections are not fully available, early indicators are positive. States across the region are working to enhance their tourism offerings and invest in infrastructure.
New Hampshire’s tourism marketing efforts and Massachusetts’s "Rev250" celebrations are expected to attract many tourists. Vermont’s ongoing focus on winter tourism and outdoor activities will likely keep it a top destination. Connecticut, with its growing appeal, is also prepared for continued growth.
Sustainable tourism remains a key focus for 2025. More travelers are seeking eco-friendly options. New England’s commitment to preserving its natural beauty while welcoming tourists will be vital for its long-term success. The region offers a variety of experiences, from outdoor adventures to cultural sites and culinary tourism.
By focusing on key trends and investing in infrastructure, New England aims to secure a strong future in tourism. This includes adapting to challenges like the reduction in Canadian visitors by diversifying its visitor base and enhancing its appeal to both international and domestic travelers.
