Canada Joins UK, France, India, Germany, Netherlands, and Others to Hammer US Tourism in 2026 as They Moved Towards Regional and Domestic Travel This Year: Everything You Need To Know

Published on December 26, 2025

In 2026, Canada joins UK, France, India, Germany, Netherlands, and others in driving a decline in U.S. tourism. Travelers are opting for regional and domestic destinations due to economic pressures and rising costs. This shift in travel behavior reflects a broader trend where key international markets are reconsidering long-haul trips to the U.S. and instead turning to more affordable, closer alternatives. In Canada, the drop in U.S.-bound travel is marked by a rise in domestic tourism, with popular spots like Banff and Niagara Falls gaining more attention. Similarly, tourists from the UK, France, India, Germany, and the Netherlands are gravitating towards regional destinations within Europe or domestic getaways, influenced by factors such as inflation, travel restrictions, and the growing appeal of exploring nearby locations. This change is putting significant pressure on the U.S. tourism sector, which will need to adapt to these shifting preferences and find ways to re-attract visitors from these once reliable source markets.

Canada’s Tourism Slump: A Shift to Domestic Adventures

Canada has experienced a significant decline in tourism to the U.S., with visitation dropping by 24% to 25.2% year-to-date. Tourism Economics reports that the steepest fall was in land arrivals, which plummeted by 37% during the summer months. This sharp decrease in Canadian travelers to the U.S. comes after a period of more stable trends, marking a drastic reversal in Canadian tourism behavior. Various factors, including changing economic conditions and travel restrictions, have likely contributed to this downturn, which has severely impacted tourism businesses across the U.S. With the decline in U.S. travel, many Canadians are opting for domestic tourism, exploring natural attractions within Canada, such as Banff and Niagara Falls, or seeking regional destinations in nearby countries like Mexico and the Caribbean.

The UK’s Travel Dip: Brits Opt for Closer Shores

The United Kingdom has seen a notable dip in tourism to the U.S. during the months of September and October, with a decline of 3.2%. However, for the year-to-date, UK visitation remains up by 1.4%. Despite the overall positive trend, the more recent months have marked a downturn in British travel to the U.S., as reported by NTTO. Economic factors, such as inflation and the cost of living, are influencing British consumers’ ability to travel abroad. This shift highlights the vulnerability of the U.S. tourism market, even from countries that are typically strong sources of international travelers. As a result, many British tourists are opting for regional travel within Europe, with Spain, Italy, and France remaining top choices. Additionally, domestic tourism within the UK has seen a rise, with increased interest in exploring the Scottish Highlands, Lake District, and Cornwall.

France Takes a Step Back: Exploring Europe Over the U.S.

France has seen a 6.3% decrease in U.S. tourism, based on NTTO’s preliminary data. Despite strong early-year performance, the Western European market, including France, has shown signs of stagnation in recent months. The decline reflects ongoing challenges in travel sentiment, particularly among Western European nations, where economic factors and concerns over travel costs have dampened consumer confidence. The drop in French tourists to the U.S. suggests a broader trend where, even with initial optimism, sustained travel to U.S. destinations has faltered. U.S. tourism stakeholders are feeling the impact of a more cautious French market that was once more consistent. As an alternative, many French travelers are turning to regional tourism within Europe, with Spain, Portugal, and Italy becoming more attractive due to affordability and proximity. Additionally, domestic tourism in France, particularly to the French Riviera and Provence, has seen an uptick.

India’s Reversal: A Shift to Regional and Domestic Exploration

Tourism from India to the U.S. has fallen by 5.0% year-to-date, according to NTTO reports. Despite being a top overseas market for the U.S., India’s tourism sector has reversed its growth peaks seen in 2024. Several factors have contributed to this shift, including changing economic conditions, increasing travel costs, and fluctuations in international travel patterns. Though India continues to be a significant source market for the U.S., the decrease reflects a broader trend of Indian travelers becoming more selective and cautious, altering their travel plans due to rising financial constraints and global uncertainties. Indian travelers are increasingly choosing regional destinations in Southeast Asia, such as Thailand, Singapore, and Malaysia, as alternatives to long-haul trips to the U.S. Additionally, domestic tourism within India is thriving, with growing interest in popular locations like Kerala, Goa, and Rajasthan.

Germany’s Sharp Decline: Europeans Turn Away from the U.S.

Germany is facing one of the sharpest declines in European tourism to the U.S., with a year-to-date drop of 11.3%. According to NTTO, September and October data revealed a notable cooling of the German market, signaling that interest in traveling to the U.S. has significantly weakened. This decline comes amid broader travel challenges across Europe, with several factors, including economic uncertainties and higher travel costs, likely influencing the drop in German visitors. Germans are increasingly choosing domestic trips within Europe or regional destinations such as Spain, Italy, and France, where travel costs are lower and cultural experiences are similar. This shift away from the U.S. reflects a broader trend toward European-based tourism as the region offers more affordable alternatives.

Netherlands’ Tourism Tumbles: A New Focus on Regional Getaways

Tourism from the Netherlands to the U.S. has dropped by 7.3% year-to-date, as indicated by NTTO reports. This decline reflects a broader trend observed in mid-sized European markets, where there has been a noticeable weakening in demand for U.S. destinations. Despite being one of the key European markets, the Netherlands has seen a slowdown, and travel sentiment appears to have cooled. Factors such as economic challenges, shifting travel preferences, and global uncertainties likely contributed to this downturn. U.S. tourism businesses are witnessing a shift as fewer Dutch travelers visit, affecting revenues during a typically strong travel period. Many Dutch tourists are now prioritizing regional tourism, with top destinations like Germany, Belgium, and France emerging as strong competitors. Domestic options within the Netherlands, such as exploring the Dutch countryside or coastal regions, are also gaining popularity as cost-effective alternatives to long-haul U.S. trips.

In 2026, Canada joins the UK, France, India, Germany, Netherlands, and others in driving a decline in U.S. tourism. Travelers are opting for regional and domestic destinations due to economic pressures and rising costs.

Conclusion

Canada, alongside UK, France, India, Germany, the Netherlands, and others, has significantly impacted U.S. tourism in 2026. This shift towards regional and domestic travel can be attributed to rising travel costs, economic pressures, and a growing preference for more affordable and accessible destinations. As international travelers increasingly opt for closer, budget-friendly alternatives, the U.S. tourism industry faces the challenge of adapting to this changing landscape. To remain competitive, U.S. tourism must find ways to entice travelers back by offering unique experiences and addressing the growing demand for cost-effective travel options.