Canadians’ Shift Away from U.S. Travel Brings New Opportunities for Local Tourism

Published on December 23, 2025

Canadian travel to the United States has taken a sharp downturn, with Statistics Canada reporting a decline of over 25% in Canadian residents’ return trips from the U.S. in October. This fall reflects a deeper trend that’s continuing through much of the year. For many years, the U.S. was Canada’s top international destination, but that’s changing, with fewer Canadians choosing to cross the border. This shift presents new challenges but also fresh opportunities for local tourism in Canada.

According to the latest data, Canadian air and road travel to the U.S. has dropped significantly. In October 2025, return trips by Canadians by car dropped by 30%, while air travel decreased by 24%. These statistics reveal that fewer Canadians are opting for U.S. vacations, and those who do are traveling less frequently. The ongoing decline in travel across the Canada-U.S. border has raised questions about the broader implications for the tourism industries in both countries, particularly for U.S. regions that have long depended on Canadian visitors.

The reasons for this change are complex, with several factors influencing Canadian travel preferences. One of the biggest contributors is the current economic climate. The U.S. dollar remains strong compared to the Canadian dollar, making U.S. vacations significantly more expensive. Higher travel costs, combined with inflation, are pushing many Canadians to seek more affordable travel options, often within Canada or to other destinations such as Mexico or Europe. Additionally, political and social tensions between the two countries may also be influencing travel decisions.

Another factor is the rise of domestic tourism in Canada. As fewer Canadians travel south, more are exploring the wealth of experiences their own country offers. From outdoor adventures in British Columbia’s mountains to cultural experiences in Quebec City, Canadians are discovering the joys of exploring their own backyard. The shift in travel preferences has led to a boom in local tourism, with provinces seeing significant growth in bookings for hotels, tours, and local attractions. The Canadian Tourism Commission and local tourism boards have capitalized on this trend by launching campaigns to encourage Canadians to explore less-travelled destinations within their own country.

For cities and towns near the Canada-U.S. border, the decline in American and Canadian visitors presents both a challenge and an opportunity. U.S. regions that typically rely on Canadian tourism are feeling the impact. In places like Washington state, for example, where tourism from Canada has traditionally been a key economic driver, businesses have had to adapt to the loss of customers. However, this shift also opens the door for Canadian destinations to become more appealing to domestic and international tourists.

For local businesses in Canada, this change presents an opportunity to boost tourism at home. With fewer Canadians travelling to the U.S., destinations like Vancouver, Toronto, and the Rocky Mountains are seeing a rise in demand for local experiences. Hotels, restaurants, and cultural sites are benefiting from the increase in local travel, and tourism operators are exploring new ways to cater to this growing market. Additionally, Canadians are opting for shorter weekend trips, resulting in increased visitation to nearby cities and natural attractions.

Another positive outcome is that Canadian destinations are also becoming more attractive to international visitors. As U.S. tourism numbers falter, Canada’s cultural and natural assets are gaining global attention. Tourists from Europe, Asia, and other parts of the world are starting to consider Canada as a top-tier travel destination, spurred by its diverse landscapes, vibrant cities, and rich cultural experiences.

Furthermore, the Canadian tourism sector is adapting to changing travel habits by investing in sustainable tourism practices. Many Canadian provinces have implemented initiatives focused on eco-tourism, conservation, and responsible travel. As more people turn to nature-based tourism, this shift is encouraging Canadians to explore destinations that emphasize sustainability. Whether it’s kayaking in British Columbia’s pristine waters or hiking through the Canadian Rockies, sustainable travel is becoming an essential part of the Canadian tourism experience.

Despite the drop in U.S.-bound trips, the Canadian government and provincial tourism authorities are optimistic about the future. The focus is now on promoting Canada as a premier destination for both domestic and international travelers. By enhancing infrastructure, creating more local experiences, and fostering sustainable travel initiatives, the Canadian tourism industry is positioning itself for long-term success.

Final Thoughts: Looking to the Future of Canadian Tourism
The decline in Canadian travel to the United States has undoubtedly reshaped the tourism landscape. While this shift presents challenges for businesses and tourism boards that relied on American visitors, it has also opened new avenues for growth within Canada’s own tourism sector. By focusing on local experiences, sustainable travel, and international visitors, Canada’s tourism industry can adapt and thrive in this new reality. The ongoing trend of domestic tourism is not only helping boost local economies but is also enhancing Canadians’ connection to their own country. With the right strategies in place, Canadian tourism is set to flourish in the coming years.