U.S. tourism faces $5.7B US loss as Canadians continue to stay home

Many Canadians continue to boycott travel to the United States, and the US economy is paying the price.

A US Travel Association Report predicts a decline in spending on international tourism in the country by 3.2% in 2025, a loss of $5.7 billion.US lion compared to the previous year.

The association attributes much of the loss to a decline in Canadian visitors, a trend that has continued since U.S. President Donald Trump returned to office in January. provoked a trade war with Canada and started calling the country the 51st state.

IN latest data for October, Return trips among Canadians traveling to the United States fell by 24 percent for air travel and 30 percent for land travel compared to the same period last year. This is ten months in a row

Canadians traditionally make up the largest group of foreign tourists visiting the United States, making up 28 percent of its tourists. 72.4 million visitors in 2024.

Usha Haley, a management professor at Wichita State University in Kansas, warns that falling tourism revenues are putting thousands of jobs at risk.

“The tourism sector is labor intensive and a major employer in many states,” she said, adding that job losses could have a knock-on effect.

For example, she said, “Reduced hotel occupancy will impact labor demand, which will impact tax collection, potentially impacting municipal finances.”

WATCH | Trump talks about Canada's trip to the US:

Trump asked about Canadians who refuse to go to the US

US President Donald Trump, seated next to Prime Minister Mark Carney, was asked about reduced travel to Canada south of the border and said “Americans don't want to buy cars made in Canada” but said he believed the issue “will be resolved” as there is “great love” between the countries. Trump's claim that the US has secured $17 trillion in new investment is widely disputed.

Trump said last month that Canada's tourism problem “will be solved. There is still great love between the two countries.”

However, since then he has continued to develop a contentious relationship with Canada.

IN response to anti-tariff announcement Initiated by the Ontario government, Trump broke off trade talks with Canada late last month. He also threatened to impose additional tariffs on the country beyond those he imposed earlier this year.

Trump says tariffs are necessary to fix situation huge trade deficit with Canada. (The country exports more to the United States than it imports.)

However, the decline in international tourism in America has contributed to a widening tourism trade deficit as more Americans travel abroad than abroad.Ionic tourists visit the USA

The USA has historically had a positive trade balance in tourism. But for 2025, the Travel Association projects a deficit of nearly $70 billion.

Haley hopes big deficit will take away from governmentAttention “because the current US administration is very concerned about the trade balance.”

Many Canadians are avoiding the US this winter

The Travel Association predicts that international travel will rebound in 2026, boosted by the U.S. hosting the World Cup and the country's 250th anniversary.

But there is no guarantee that Canadians upset by the Trump administration will change course.

Even though snowbird Rena Hans of Toronto owns an apartment in Florida, she is adamant she will not return to the US until Trump leaves office.

“Why would I give money to a country whose president has said they want to annex my country and has put up huge trade barriers?” – asked Hans.

Instead, she's leaving this weekend for a trip to Costa Rica and then another trip to Turks and Caicos. She plans to spend a month in China and Taiwan in the new year.

“There are a lot of other places to go,” she said. “I can't vote [in the U.S.]but I can vote with my dollars.”

Rena Hans holds her dog.
Snowbird Rena Hans of Toronto says she won't be traveling to the US this winter, although she has an apartment in Florida. (Submitted by Rena Hans)

new Angus Reid Poll suggests that Hans is not alone. Of 1,607 Canadians surveyed in late October, 70 percent said they would not be comfortable traveling to the United States this winter.

The top three reasons respondents gave for avoiding travel were a determination to stand up for Canada, the current political climate in America, and concerns about increased level of security at the border during Trump's immigration crackdown.

On border issues, Hans says the Trump administration's new registration requirement for long-term travelers is another deterrent. The rule is which came into force in Aprilrequires certain aliens, including Canadians, staying in the United States for longer than 29 days to register with the U.S. government.

This rule mainly applies to land border travelers who, if they register at the borderwill be photographed, fingerprinted and will be charged a $30 fee each.

“To do this for people over 60 who are spending a lot of money to go to Florida for three months… it's just ridiculous,” Hans said.

The U.S. Department of Homeland Security told CBC News in an email that the registration rule is “consistent with the Trump administration's ongoing efforts to enhance the safety and security of the United States.”

WATCH | Snowbirds photographed and fingerprinted at US border:

Snowbirds fingerprinted at US land border

Many Canadian snowbirds crossing the land border into the United States have been told they must be photographed and fingerprinted as part of a new registration process.

US travel groups offer incentives

US states close to the Canadian border have already been hit hard by the decline in tourism. In response, several tourism organizations representing areas such as Buffalo, Seattle and Upstate New York launched campaigns offering discounts and special offers to bring Canadians back.

The latest to do this is Discover Kalispell. The tour group represents Kalispell, a town and ski resort in northwestern Montana near the Alberta border.

The organization reports that foreign visitors to the city are spending money on credit cards on an annual basis. from January to September decreased by 39 percent.

To combat this problem, Discover Kalispell created Canadian Welcome Pass where more than a dozen businesses such as restaurants and hotels are offering special deals for Canadians until January 15, 2026.

“Montana and Alberta have enjoyed a close relationship for many years,” said Diane Mettler, executive director of Discover Kalispell. told CBC radio.

We just wanted to give a little incentive,” she said. “We missed them.”

WATCH | Kalispal, Montana offers benefits to Canadians:

This American city is offering incentives to attract Canadian visitors

Kalispell, Montana, just south of the Alberta-British Columbia border, announced the release of a Canadian Welcome Pass offering discounts and special offers to visitors north of the 49th parallel. For nine months in a row, U.S. road and air travel volumes from Canada have declined by double digits compared to last year.

At Kalispell's My Place, the number of Canadian customers is down 40 percent from last year, according to general manager Bryce Baker.

“It definitely makes a difference and absolutely impacts our bottom line,” he said.

As part of the Welcome Pass, My Place Hotel is offering Canadians a 26 percent discount on their room rate.

“I see this as a way to help and thank people who are still recovering,” Baker said. “We want to make sure they understand that we truly value [them]”

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