Canadian Tourism to U.S. Plummets 33% Amid Political Tensions, Trudeau Urges Travel at Home
In a significant drop, Canadian tourism to the United States has seen a sharp decline in June 2025, with the National Statistical Agency of Canada reporting a staggering 33.1% decrease in car travel and a 22.1% decrease in air travel compared to the previous year. This trend marks the sixth consecutive month of declining visits, raising concerns about the economic and cultural impact of this downturn.
Background & Context
The backdrop to this decline is steeped in political tensions, particularly stemming from controversial statements made by former U.S. President Donald Trump regarding Canada potentially becoming the "51st state." These remarks have resonated negatively with Canadian citizens, prompting a notable shift in travel patterns. In February 2025, Canadian Prime Minister Justin Trudeau publicly advised citizens to reconsider their travel plans to the U.S. and instead explore the vast and diverse offerings within Canada. This call to action highlights the government's attempt to foster national pride and support local tourism sectors amidst external pressures.
Historically, Canadians have been among the largest groups of tourists visiting the U.S., with over 20.4 million Canadians contributing approximately $20.5 billion to the U.S. economy in 2024 alone. The recent downturn poses a stark contrast to these figures and raises alarms about the potential economic ramifications for both nations.
Key Developments
The latest statistics reveal a continuing trend of reduced travel, with the car trips accounting for a significant portion of the decline. The 33.1% drop in vehicle crossings at border points underscores a growing reluctance among Canadians to travel south. Air travel has also taken a hit, with a 22.1% decrease in the number of Canadians returning by plane from the U.S. These figures are particularly concerning for the U.S. tourism industry, which heavily relies on Canadian visitors.
Experts warn that even a modest 10% reduction in Canadian tourist flow could result in a staggering loss of $2.1 billion for the U.S. economy. This decrease not only affects businesses directly reliant on tourism but could also have a cascading effect on related sectors, including hospitality, retail, and transportation.
Broader Impact
The implications of this decline extend beyond numbers, affecting the cultural and social fabric of the relationship between Canada and the U.S. The longstanding ties forged through tourism, commerce, and shared experiences are at risk of fraying. Analysts suggest that the political climate, marked by divisive rhetoric and increasing nationalism, is shaping perceptions and experiences of travel between the two countries.
Moreover, this situation mirrors previous periods of strained relations, where political tensions have led to similar declines in tourism. As previously reported, such scenarios have historically resulted in economic downturns for border cities and communities that thrive on cross-border travel. The current situation serves as a reminder of how deeply intertwined the economies and cultures of Canada and the U.S. are.
What's Next
Looking ahead, the future of Canadian tourism to the U.S. remains uncertain. With political tensions showing no signs of abating, stakeholders are calling for diplomatic efforts to mend relations and reassure Canadian travelers. The U.S. Travel Association is likely to advocate for initiatives aimed at restoring confidence among Canadian tourists, emphasizing the shared benefits of cross-border travel.
In the meantime, Canadian tourism officials are doubling down on promoting domestic travel, encouraging citizens to discover and enjoy the vast landscapes and cultural offerings within their own country. As the summer travel season approaches, the Canadian tourism industry is poised to adapt to these changing dynamics, seeking to capture the interest of its citizens while navigating the complexities of international relations.
