Canadian travel to the United States is seeing a sharp decline as the ongoing North American trade war takes a toll on America’s tourism industry. The latest seasonally adjusted data shows a 6.4% drop in Canadian residents returning from U.S. trips between December and January, with further declines expected following U.S. import tariffs introduced in March.
Cross-border flight bookings for spring and summer have plummeted by over 70%, according to an industry monitor, signaling traveler hesitation amid economic uncertainty. John Grant, chief analyst at OAG Aviation Worldwide, noted that the airline industry is facing unintended consequences as market conditions weaken.
Visitor spending is also slowing, with a California non-profit projecting a 15% decline in Canadian travel to the U.S. this year. Canada remains the U.S.’s top source of international visitors, with 20.4 million trips recorded last year. A 10% drop in travel could cost the U.S. 14,000 jobs and $2.1 billion in lost revenue, according to the U.S. Travel Association.
Factors contributing to the downturn include a strong U.S. dollar, economic slowdown, visa delays, safety concerns, and uncertainty over America’s perceived hospitality. Demand for U.S. tour packages has also dwindled, with Canadian companies reporting widespread cancellations.
“Our New York trip used to run 25 to 30 buses annually, now it’s down to zero,” said Karl Gilder, owner of Travac Tours. In New Brunswick, PT Tours has completely cut U.S. destinations due to lack of interest.
New York City tour operator Matt Levy described the decline as “catastrophic,” noting that Canadian high school class trips brought in $35,000 in 2024 but have dwindled to just $5,000 this year. The shift away from U.S. travel is also reflected in Canadian Airbnb searches, which have surged 20% for domestic stays.
With more Canadians opting for local travel, the trend could have lasting effects. “Once you start buying local, you’re not going to change your mind,” said PT Tours owner Phyllis LeBlanc.
Source: Swifteradio.com
