Michigan Joins Ohio, Illinois, North Dakota, and Pennsylvania and More US States as Canadian Travel is Hammering American Tourism Economy, New Research Shows More Than You Know

Published on December 13, 2025

As political tensions between the United States and Canada continue to escalate, the economic impact is being strongly felt across several U.S. states, including Illinois, Michigan, Ohio, Pennsylvania, North Dakota, and Montana. These border regions, which traditionally rely on significant tourism from Canadian visitors, are experiencing a sharp decline in cross-border traffic. According to recent tourism data and government reports, Canadian tourism has dropped by as much as 30% in some of these states, leading to substantial financial losses, with businesses reporting revenue reductions of up to $38,000.

This dramatic decrease in Canadian travelers comes on the heels of ongoing tariff disputes, strained diplomatic relations, and heightened concerns over trade agreements. Latest figures from Statistics Canada and U.S. Customs show a significant decline in the number of Canadian visitors to the U.S. in 2025, creating a ripple effect across local economies heavily dependent on Canadian tourism.Michigan Hit Hard: Tourism Declines Impact Detroit, Upper Peninsula, and Great Lakes

Michigan: Detroit, Upper Peninsula Face Economic Strain as Canadian Tourism Plummets by 30%

In Michigan, Detroit and the Upper Peninsula — both popular destinations for Canadian tourists — are feeling the economic strain from lower visitor numbers. The decline in Canadian travel has caused hotels and restaurants to report empty rooms and empty tables. Retailers along the Great Lakes have seen fewer Canadians shopping for goods, particularly in Detroit and its surrounding suburbs.

In addition, the Mackinac Bridge, a landmark linking Michigan’s two peninsulas, often sees a high volume of Canadian visitors, but recent reports indicate a significant reduction in cross-border traffic. Tourism professionals are worried about the long-term effects on Michigan’s hospitality industry, which has relied on Canadian visitors for years.
Michigan has been hit hard by a decline in Canadian tourism in 2025, with border crossings down by nearly 30% compared to the previous year. Historically, Canadian travelers have been a key source of revenue for Michigan, especially in Detroit and the Upper Peninsula, with visitors flocking for shopping, outdoor activities, and events. However, recent political tensions between the U.S. and Canada, particularly concerning tariffs and trade disputes, have led many Canadians to reconsider travel to the U.S.

The strong U.S. dollar and the rising costs of travel have also made U.S. destinations less attractive. Many Canadians are choosing to vacation domestically or travel to other international destinations instead of crossing the border. This decline has had a noticeable economic impact, with local businesses, particularly in tourism, retail, and hospitality, reporting significant losses in revenue due to fewer Canadian visitors

North Dakota: Fargo and Beyond Suffering as Canadian Tourism Drops by 30%

North Dakota, traditionally welcoming a significant number of Canadian visitors from Manitoba and Saskatchewan, is now grappling with a 30% drop in cross-border traffic. The city of Fargo, known for its annual festivals and shopping tourism, has seen a decline in retail and hotel occupancy rates. Many businesses in Fargo and the surrounding areas that depend on Canadian shoppers for seasonal revenue have reported significant losses.

Local business owners have raised concerns that the downturn may not be temporary, with many Canadians opting to stay closer to home or visit other destinations instead. Fargo’s tourism board has already begun efforts to diversify its visitor base, but the current decline has left many feeling uncertain about the future.

Ohio’s Cleveland and Lake Erie Attractions Report Decreased Canadian Visitors

In Ohio, both Cleveland and the Lake Erie region, historically a popular destination for Canadians, have been hit hard by the drop in cross-border tourism. Reports from local tourism officials show a 25% drop in Canadian visitors, especially during peak months when Canadians flock to Cleveland for cultural events and sporting events.

The Cleveland Indians baseball games and the Rock and Roll Hall of Fame have historically drawn large Canadian crowds, but this year, ticket sales and event attendance have taken a hit. Hotels near downtown Cleveland, which traditionally benefit from Canadian travel, have seen empty rooms and cancelled bookings.

California’s Major Tourist Destinations: San Francisco and Los Angeles Suffer as Canadian Travel Declines

California has also felt the sting of lower Canadian visitor numbers, particularly in San Francisco and Los Angeles. Tourism operators in cities like Hollywood and the Golden Gate Bridge are reporting significant drops in Canadian bookings, which traditionally made up a large part of their clientele.

According to the California Tourism Board, ferry ridership to Alcatraz Island and other waterfront destinations has decreased by 20%, and many hotels in these areas are struggling with reduced occupancy rates. California’s travel industry, which usually thrives during the Canadian spring break and winter holidays, is facing a major setback as the Canadian market shrinks.

Vermont’s Declining Tourism: Affected by Reduced Canadian Visitor Numbers

Vermont, with its scenic beauty and outdoor attractions, has traditionally been a hotspot for Canadian travelers, particularly those from Quebec and Ontario. However, the current economic strain has left many local businesses vulnerable. According to the North Country Chamber of Commerce, 83% of businesses in the area have reported a significant drop in Canadian visitors, and hotel bookings are down by 30-40%.

The region, which has relied on Canadian tourists to fill up ski lodges and tourist attractions, is now seeing vacant hotel rooms and empty restaurants. Local businesses are struggling to stay afloat, with some already cutting back on staff and services.

Pennsylvania: Fewer Canadian Tourists to Cultural Hubs Like Philadelphia and Pittsburgh

In Pennsylvania, the decline in Canadian tourism is particularly felt in Philadelphia and Pittsburgh, two of the state’s most significant cultural and tourism hubs. Historically, Canadians from Ontario and Quebec would flock to Philadelphia for its historical landmarks, including the Liberty Bell and Independence Hall, and to Pittsburgh for its vibrant cultural scene and sporting events. However, recent reports show that fewer Canadians are visiting the state, leading to declining revenue for local businesses.

A 30% drop in Canadian visitors has been reported, with hotel bookings and theater performances particularly affected. As tariffs and trade tensions have worsened, many Canadians have decided to travel elsewhere, either choosing domestic destinations or opting for other international travel options. According to the Pennsylvania Tourism Office, businesses in Philadelphia and Pittsburgh have been forced to adjust by cutting staff and scaling back operations due to the decrease in Canadian tourist traffic.

Illinois: Chicago and Beyond Feel the Impact of Canadian Travel Decline

Illinois, particularly Chicago, another major tourist destination for Canadians, is also experiencing major financial losses due to the decline in Canadian visitors. Chicago, which typically draws Canadians for its shopping, dining, and cultural experiences, has reported a noticeable decrease in foot traffic from the Great White North. According to Chicago Tourism Bureau, hotel occupancy rates have fallen, with some hotels experiencing up to a 25% decrease in bookings from Canadian guests.

The strong U.S. dollar and increased political tensions have contributed to the decline in travel, making U.S. destinations like Chicago less attractive. Many Canadians are opting to travel to Europe or domestic destinations within Canada instead of crossing the border. The decline in tourist activity has hurt businesses and local economies, particularly those in retail and tourism. The Chicago Chamber of Commerce is urging businesses to adapt to changing travel patterns and target new international markets

The Bigger Picture: How Diplomatic Tensions and Economic Factors Are Affecting U.S. Tourism

The decline in Canadian tourism to the U.S. is tied to a complex mix of factors, including political tensions, tariffs, and economic considerations such as exchange rates. The Trump administration’s trade policies and anti-Canadian rhetoric have contributed to a decline in Canadian interest in traveling to the U.S. While there is no official ban on Canadian travel, many Canadians have opted for other destinations that feel more welcoming or financially viable.

Canadian tourism had been a key pillar of the U.S. economy, especially in border states, contributing billions of dollars annually. But the current drop in visitors is signaling the need for U.S. border states to rethink their reliance on this market. Moving forward, these regions will have to diversify their tourism efforts and find new ways to attract visitors from both domestic and international sources.

Conclusion: What Can Be Done to Reverse the Trend?

As the Canadian tourism decline continues to take its toll, it’s clear that U.S. border states must work quickly to adapt. From targeted marketing campaigns aimed at restoring Canadian interest to increased diplomatic efforts to improve U.S.-Canada relations, the solution lies in addressing the broader issues causing this decline.

For now, businesses in Michigan, North Dakota, Ohio, California, and Vermont will need to brace for further challenges. However, with the right support and renewed focus on international tourism, these states can work to bounce back from the economic impact of declining Canadian visit