Canadian Tourists Ditching Travel to United States and Prefer Road Trips to Alberta, British Columbia, Nova Scotia, Quebec, Manitoba, How American Tourism Slump, Inflation and Border Tension Affecting This Sector

Published on July 25, 2025

By: Tuhin Sarkar

As political tensions, inflation, and shifting travel preferences reshape the global tourism landscape, Canadians are increasingly choosing to explore their own country rather than venturing into the United States. With the ongoing tariffs and border tensions between Canada and the U.S., a growing number of Canadians are opting for domestic road trips to stunning destinations like Alberta, British Columbia, Nova Scotia, Quebec, and Manitoba.

This new travel trend reflects a broader shift in consumer behavior, driven by economic pressures, rising costs of international travel, and a deepening sense of national pride. Surveys indicate that over half of Canadians are planning to spend less on vacations to the U.S. in favor of exploring their own beautiful backyard. Regions such as the Rocky Mountains, coastal British Columbia, and the Maritimes have seen an uptick in domestic tourism, as Canadians seek out familiar, yet extraordinary destinations without the hassle of international travel.

With inflation affecting everything from gas prices to accommodation rates, Canadians are turning to more affordable, close-to-home options. The “Buy Canadian” movement has gained momentum, encouraging both local travel and supporting small businesses. The growing appeal of Canada’s national parks, quaint towns, and majestic natural wonders has become an attractive alternative, offering peace of mind, cost savings, and a sense of community. This shift not only supports Canada’s tourism sector but also fosters a renewed appreciation for local destinations.

Canadians are opting for domestic road trips and exploring local destinations this summer instead of crossing the border into the U.S., as tariffs and political tensions reshape vacation plans. After threats from U.S. President Donald Trump to annex Canada and the imposition of tariffs on Canadian goods, a growing number of Canadians have embraced the “Buy Canadian” movement, leading to a surge in local tourism. In fact, more than half of Canadians surveyed now plan to reduce their visits to the U.S., and many are investing in their own country’s treasures.

The shift has seen Canadians flocking to spots like Ottawa, the midnight sun in Yukon, whale watching in Nova Scotia, and the mountainous trails of Banff. Local tourism businesses are reaping the benefits as airlines report a rise in domestic flight bookings and companies like Guess Where Trips are seeing a 75% increase in sales for road trips across Canada.

A Patriotic Shift Toward Local Exploration

As international tensions rise, particularly with the U.S., Canadians are increasingly choosing to explore their own country. Jessica Bax, operations manager for Guess Where Trips, a company that offers curated mystery road trip packages across four Canadian provinces, noted a notable increase in interest for local travel experiences. Road trips around Ottawa, Canada’s capital city, have become one of their most popular packages, as more Canadians embrace their national heritage and discover the joys of local getaways.

Prime Minister Mark Carney has also backed the initiative, encouraging Canadians to take full advantage of the new “Canada Strong” pass, which offers free or discounted access to national parks, museums, and historic sites across the country. This move aligns with growing national pride and a push to promote tourism that supports local economies, especially as foreign travel becomes a more uncertain option due to increased costs and safety concerns.

The Impact of Tariffs and U.S. Tensions on Travel Plans

The decision to stay domestic is largely influenced by tariffs imposed on Canadian goods, which have led many consumers to rethink their travel plans to the U.S. Beyond the political rhetoric of President Trump’s threats, Canada’s political climate has stirred a sense of unity and loyalty among its citizens. With increasing public sentiment to support Canadian businesses and local attractions, many Canadians are now redirecting their travel budgets toward exploring Canada’s diverse landscapes.

In addition to the tariffs, there have been growing concerns about safety and misleading marketing from U.S. companies, which have left some Canadians hesitant to venture south. Domestic tourism has been presented as a viable alternative, with its promise of both security and enjoyment without the complexity of international travel.

Domestic Tourism Demand: Boosting Local Economies and Airlines

According to Destination Canada, the country’s official tourism promotion agency, domestic tourism spending increased by 4% in the first quarter of 2025 compared to the previous year. As Canadians spend more within their own borders, local businesses, including hotels, restaurants, and attractions, are seeing a welcome influx of customers. Additionally, airlines operating within Canada are experiencing a boost in bookings, as more people choose to explore the country by plane.

The impact of this trend is evident in communities across the country, from the bustling streets of Vancouver to the historical landmarks in Montreal. In Nova Scotia, for example, whale watching tours in Lunenburg, a UNESCO World Heritage town, are seeing higher-than-usual participation as more domestic tourists book adventures to discover Canada’s pristine coastline. Local businesses like tour companies and restaurants are benefiting greatly from the uptick in local tourism, and there is a growing sense of excitement around supporting businesses close to home.

Canadians Flock to Discover Hidden Gems

On the west coast, British Columbia has seen a rise in the popularity of RV rentals, as travelers seek to enjoy the outdoors and the open road. Family-owned businesses like Evergreen Hospitality Group are seeing significant increases in bookings, particularly for RV trips in the Okanagan Valley and surrounding areas.

Canada’s Road Trip Boom: A Shift Toward Domestic Exploration

In 2025, Canada’s tourism sector is experiencing a notable surge in domestic travel. This shift, largely spurred by political tensions, tariff disputes, and growing national pride, has led many Canadians to rediscover the breathtaking beauty of their own country. Canadians are increasingly opting for road trips—a trend that is helping boost local economies, small businesses, and the hospitality sector across the nation. As more Canadians travel within their own borders, iconic landmarks and hidden gems alike are being explored with fresh eyes.

The growing trend toward domestic road trips is in direct response to rising concerns over international travel, especially to the U.S. This year, surveys show that 55% of Canadians plan to spend less on U.S. vacations, while 35% are increasing their travel within Canada. With the Canadian government introducing initiatives like the “Canada Strong” pass, offering discounts to national parks and historic sites, it’s no surprise that more people are choosing to explore Canada’s rich diversity of natural beauty, cultural landmarks, and pristine outdoor experiences.

Banff and Lake Louise: Canada’s Crown Jewel in the Rockies

There’s no question that Banff and Lake Louise are among the most iconic destinations in Canada. Situated in the heart of the Rocky Mountains, these two destinations in Alberta are synonymous with majestic beauty and outdoor adventure. Whether you’re hiking along Lake Louise’s turquoise waters or exploring the rugged landscapes of Banff National Park, this region offers a mix of serenity, wildlife, and exhilarating outdoor activities.

A road trip through Banff and Lake Louise provides stunning vistas at every turn. The Icefields Parkway, which connects Banff and Jasper National Parks, is one of the most scenic drives in the world, offering views of glaciers, emerald lakes, and towering peaks. Don’t forget to stop at Peyto Lake, one of the most photographed spots in Canada, for an unforgettable view of its wolf-head shape.

Whether you’re interested in skiing in the winter months or enjoying hiking and wildlife watching in the summer, Banff and Lake Louise offer year-round experiences for every kind of traveler. Local businesses, including cozy mountain lodges and artisan shops, have been thriving due to the growing influx of domestic visitors.

The Cabot Trail: Nova Scotia’s Coastal Masterpiece

For those who want to feel the winds of the Atlantic Ocean while experiencing breathtaking coastal beauty, the Cabot Trail in Nova Scotia is a must-see. Winding its way around the rugged Cape Breton Highlands National Park, this scenic highway offers spectacular views of cliffs, beaches, and coastal villages. The Cabot Trail is famous for its dramatic landscapes, especially along Cape Smokey, where the views of the Gulf of St. Lawrence are awe-inspiring.

The drive through Cape Breton Island is one of Canada’s most celebrated routes, offering a mix of outdoor adventure and cultural discovery. You’ll find picturesque fishing villages, whale watching opportunities, and historic lighthouses along the way. With vibrant Scottish heritage, Nova Scotia is home to a unique combination of natural wonders and cultural experiences, from traditional ceilidh dances to fresh lobster dinners.

The Cabot Trail is also perfect for those seeking a more leisurely experience. Travelers can stop at Baddeck, home to the Alexander Graham Bell Museum, or venture into Ingonish for hiking and nature walks. The hospitality in this region is known for its warmth and welcoming locals, making it a perfect spot for a relaxing road trip.

The Trans-Canada Highway: The Ultimate Cross-Country Journey

For those looking to go on the ultimate road trip, the Trans-Canada Highway offers the most expansive journey across the country. This longest continuous highway system in the world spans over 7,800 kilometers from Vancouver to St. John’s, taking travelers through Canada’s most varied and diverse landscapes.

A road trip across the Trans-Canada Highway provides everything from mountain passes to prairie vistas, and from dense forests to coastal beauty. The journey is a testament to the diversity of Canada’s natural wonders. Along the way, make sure to visit Banff National Park, the Prairies, the Sault Ste. Marie, and the East Coast for unforgettable experiences that include kayaking in Victoria, wine tasting in the Niagara Region, and hiking in Gatineau Park.

The Gaspé Peninsula: Coastal Charm in Quebec

The Gaspé Peninsula is one of Quebec’s most scenic destinations, offering both rugged coastline and cultural treasures. Known for its Forillon National Park and iconic Percé Rock, the Gaspé Peninsula offers stunning views of the Gulf of St. Lawrence and cliffs that rise dramatically from the sea. The area is also famous for whale watching, where you can spot several species of whales, including the majestic blue whale.

Driving along the Gaspé Coast feels like stepping into a postcard, with charming fishing villages and historic lighthouses dotting the coastline. Make sure to visit Percé for panoramic views of Percé Rock, one of Canada’s most recognizable natural landmarks. The Gaspé Peninsula also offers great opportunities for bird watching and hiking, particularly in the Gaspésie National Park, where you can explore forests, wildlife, and mountain peaks.

Prince Edward Island: A Whimsical Coastal Escape

Known for its red-sand beaches, rolling farmland, and rich literary history, Prince Edward Island is the perfect destination for those looking for a peaceful, picturesque retreat. The island, home to the famous Anne of Green Gables novel, offers not only charming lighthouses but also incredible natural beauty.

A road trip around PEI offers a leisurely journey through pastoral scenery, vibrant art galleries, and delicious seafood. A must-see is Green Gables House, where visitors can immerse themselves in the world of Anne Shirley. Additionally, the island is a UNESCO Biosphere Reserve, making it a top destination for nature lovers and those interested in sustainable tourism.

Kootenay Rockies: A Hidden Gem in British Columbia

The Kootenay Rockies in British Columbia is one of the lesser-known but equally stunning road trip destinations in Canada. Offering rugged mountain ranges, hot springs, and charming towns like Nelson, this region is perfect for those seeking both adventure and relaxation. A road trip through the Kootenay Rockies promises scenic views and access to hidden gems like Radium Hot Springs and Yoho National Park.

Visitors can explore the Purcell Mountains, enjoy outdoor activities such as skiing in the winter or hiking and mountain biking in the summer, and experience small-town charm with vibrant local markets and art galleries. The Kootenay Rockies is a perfect destination for a more off-the-beaten-path road trip.

Canada’s Road Trip Revival

As Canadians increasingly choose local destinations over international travel, the country’s road trip culture is experiencing a renaissance. From the breathtaking Rockies to the charming coastal towns of the Maritimes, Canada’s diverse landscapes and rich cultural heritage offer endless possibilities for road trip enthusiasts. Whether it’s the iconic Trans-Canada Highway or a quiet exploration of the Gaspé Peninsula, Canada’s natural beauty and vibrant communities ensure that domestic travel will remain a top choice for years to come.

As Canadians embrace this newfound passion for local travel, the tourism industry continues to benefit, supporting small businesses, regional economies, and fostering national pride in the process. So, pack your bags and hit the road—there’s a whole country to explore right at your doorstep.

Canada’s Tourism Boom: Domestic Travel Takes Center Stage

As the global travel industry continues to navigate changing dynamics in 2025, one significant trend is emerging: Canada’s domestic tourism is booming, while U.S. tourism is facing a downturn. This shift has been driven by political factors, tariffs, and growing national pride in Canada, alongside a series of policy missteps in the U.S. that have caused some travelers to rethink their vacation plans.

The Canadian government and local tourism companies are capitalizing on this trend, encouraging citizens to explore their own country rather than traveling abroad. In fact, a recent Bank of Canada survey revealed that 55% of Canadians intend to spend less money vacationing in the U.S. this year, while 35% plan to increase their travel within Canada. This pivot towards local travel is not only boosting the Canadian economy but is also reshaping the tourism industry.

A Shift to Domestic Getaways: The Growing Popularity of Canadian Travel

The political climate in Canada and the U.S. has played a key role in encouraging domestic travel. Following a series of tariffs imposed by the U.S. on Canadian goods, many Canadians have opted to vacation closer to home. The “Buy Canadian” movement has gained traction, with more Canadians choosing to support local businesses and explore the country’s diverse destinations.

From road trips around Ottawa to the midnight sun in Yukon, whale watching in Nova Scotia, and hiking in Banff, Canadians are rediscovering the beauty of their own country. According to Destination Canada, domestic tourism spending increased by 4% in the first quarter of 2025, signaling that Canadians are embracing their local offerings.

Tourism companies, such as Guess Where Trips, have seen a 75% increase in sales for Canadian road trip packages compared to last year. These companies are responding to the growing demand by offering curated experiences that highlight hidden gems and small businesses across Canada, encouraging people to explore areas they may have overlooked before.

Government Support: The “Canada Strong” Pass Promotes National Pride

The Canadian government has also played a pivotal role in promoting domestic travel through initiatives like the “Canada Strong” pass, which offers free or discounted access to several national parks, historic sites, and museums. This initiative not only supports the tourism sector but also instills a sense of pride among Canadians, encouraging them to connect with their country’s heritage and natural wonders.

Prime Minister Mark Carney has actively supported these initiatives, urging Canadians to take advantage of the pass and spend time exploring their own country. This push is particularly relevant in a time when international travel has become more complicated, and rising tariffs make cross-border trips less appealing. By focusing on local attractions, Canada’s tourism industry is gaining strength and resilience.

The U.S. Tourism Slump: Tariffs, Politics, and Safety Concerns

While Canada enjoys a surge in domestic tourism, the U.S. tourism sector is facing significant challenges. The imposition of tariffs and political tensions, especially in light of threats to annex Canada, have made many Canadians hesitant to travel to the U.S. The ongoing trade disputes between the two countries have caused visa and trade barriers to become more prominent, affecting travel dynamics and leading to a decline in visits to the U.S. from Canadians.

According to a Reuters report, the number of U.S. trips taken by Canadians fell by 17% in May 2025, a concerning statistic for U.S. businesses that rely heavily on Canadian tourists. Xiaomi, Huawei, and BYD, all Chinese competitors in the automotive and technology space, also face challenges in the U.S. market, further highlighting the strain between the two nations.

Moreover, U.S. policies like higher visa fees and higher national park entry fees for foreign visitors have exacerbated the situation, making the U.S. less appealing for international travelers. In fact, a survey by TD Bank revealed that 64% of Canadians are opting to travel within Canada this year, a statistic that underscores the growing preference for local vacations over international trips.

Economic Impact: Canada’s Tourism Sector Outpaces the U.S.

The surge in Canadian domestic tourism has provided a much-needed boost to the Canadian economy. According to mordorintelligence.com, the Canadian travel and tourism market is projected to reach USD 90.09 billion by 2025, with a 4.08% CAGR through 2030. This growth is supported by federal programs, the weakened Canadian dollar, and a growing emphasis on sustainable tourism that highlights nature-based experiences.

In contrast, the U.S. tourism industry is struggling to maintain its pre-pandemic levels of growth. Despite having a larger share of the global tourism market, the U.S. tourism revenue in 2025 has been adversely affected by the declining number of international visitors, particularly from Canada, which has traditionally been one of the largest sources of international tourists to the U.S. The 17% drop in U.S. trips from Canadians in May 2025 further underlines the negative impact of tariffs and political issues on the U.S. economy.

The Growing Popularity of RVs and Local Tours

In British Columbia, RVs have become increasingly popular as travelers seek to explore the province’s natural beauty while enjoying the flexibility of mobile accommodation. Companies like Evergreen Hospitality Group, a family-owned tourism firm, have reported significant growth in RV bookings, reflecting a broader trend of Canadians embracing road trips and outdoor adventures.

This growing interest in RV travel and local tours is mirrored by a rise in interest for whale watching and cultural tours in places like Lunenburg, Nova Scotia. As a UNESCO World Heritage town, Lunenburg has seen an influx of domestic travelers eager to engage with local wildlife and enjoy maritime heritage.

A New Era for Canadian Tourism

Canada’s tourism sector is experiencing a major resurgence, fueled by national pride, political factors, and a desire for safe, accessible travel experiences. As Canadians increasingly opt to explore their own country, local businesses, and tourism companies are benefitting from this shift. In contrast, the U.S. tourism slump driven by tariffs, safety concerns, and economic policy is a wake-up call for the U.S. to reconsider its approach to international visitors, especially from neighboring Canada.

With Canadian travelers embracing their country’s wealth of natural beauty, cultural heritage, and local attractions, the Canadian tourism industry is primed for continued growth in the coming years. This shift in travel behavior, combined with government support and rising consumer demand, will continue to shape the future of domestic tourism in Canada, positioning it as one of the world’s top destinations for adventure, culture, and sustainability.

Growing Support for National Parks and Local Travel

The Canadian government’s push to support domestic tourism is reflected in its initiatives, such as the “Canada Strong” pass which allows access to national parks and historic sites across the country. Mark Carney has highlighted the importance of Canadians exploring their own country, emphasizing that this initiative helps promote both economic recovery and national pride.

As tourism-related spending rises across Canada, particularly in regions such as Ontario, Nova Scotia, and British Columbia, local businesses and national parks stand to benefit. The ongoing promotion of Canadian-made products and experiences aims to keep travel dollars within the country while fostering a sense of community among Canadians.

A Lasting Impact on Future Travel Trends

While some travel trends may ebb and flow, the recent shift towards domestic travel in Canada seems poised to leave a lasting mark on the industry. With international tensions and tariff-related concerns influencing Canadians’ decisions, many are rediscovering the beauty and diversity of their own country. Canada’s tourism sector is seeing strong growth, driven by patriotism and a renewed appreciation for local attractions.

As long as global uncertainty continues to affect international travel, Canada’s domestic tourism will likely remain a strong contender for both local and international travelers looking for a safe, enriching, and accessible vacation option. Canadians are finding that the best vacations don’t always require crossing a border—they’re often found just a short drive or flight away in their own backyard.