Michigan Joins Ohio, Illinois, Pennsylvania, North Dakota, and Montana as Border States Grapple with Tourism Decline Amid 2025 Canadian Travel Collapse, Cross-Border Spending Falls: What You Need to Know

Published on December 28, 2025

Michigan has joined Ohio, Illinois, Pennsylvania, North Dakota, and Montana in facing a growing tourism slowdown as Canadian travel to the United States weakens sharply in 2025, underscoring how heavily border economies rely on cross-border movement. States that once benefited from frequent weekend road trips, shopping visits, and seasonal vacations from Canada are now recording fewer land crossings, softer air travel demand, and a clear drop in spending across hotels, restaurants, and retail hubs.

This downturn is being fueled by a mix of economic and policy pressures, including higher travel costs tied to a weaker Canadian dollar, tighter U.S. border and travel requirements, and ongoing political and trade frictions that have dampened interest in U.S. trips. Changing post-pandemic travel habits and stronger competition from alternative international destinations have further redirected Canadian travelers. As a result, research shows some border states are seeing visitor declines of up to 30% compared with 2024, intensifying economic strain across tourism-dependent communities along the U.S.–Canada border.

U.S.–Canada border regions have long benefited from short road trips, weekend shopping, seasonal outdoor recreation, and repeat visits by Canadian tourists, generating billions of dollars for hotels, restaurants, events, and retail sectors. However, both land and air travel from Canada have fallen sharply in 2025, compounding economic pressures.

Economists point to broader political and economic frictions between the two countries as major factors behind this slump. Trade disputes, diplomatic tensions, and stricter U.S. visa and travel regulations have all contributed to a reduced appetite among Canadians for trips to the United States. In 2024, Canadian tourism contributed over $20.5 billion to the U.S. economy and supported roughly 140,000 American jobs, primarily in hospitality and services—numbers now at risk as travel volumes contract.

Border States Facing the Steepest Declines

A December 2025 Joint Economic Committee report revealed that passenger-vehicle crossings at the U.S.–Canada border fell by nearly 20% overall from January through October, with several states experiencing far steeper declines:

• New Hampshire: Canadian visits dropped roughly 30%, driven by tariffs, tighter border controls, and political tensions that also reduced through-traffic in northern New England.
• Vermont: Passenger-vehicle crossings from Canada fell more than 28%, hitting small towns and ski-country gateways dependent on repeat weekend traffic.
• Idaho: Crossings decreased over 27%, affecting border communities and mountain recreation corridors that rely on road trip visitors.
• Maine: Land crossings fell about 25%, with nearly 750,000 fewer Canadian entries through November 2025, weakening hospitality and retail revenues in border areas.
• Washington: Passenger-vehicle crossings dropped more than 24%, impacting businesses in Bellingham and along the I-5 corridor built around quick cross-border trips.

Across New England and other border regions, the economic effects are visible in empty parking lots, reduced walk-ins, and lower weekend hotel occupancy. The decline underscores how much these local economies depend on Canadian tourism.

Key Drivers of the Decline

Several interrelated economic, political, and policy factors have contributed to the sharp drop in Canadian travel to the United States in 2025:

1. Rising Political and Trade Tensions: Diplomatic strain and trade disputes have created uncertainty, making U.S. trips feel less predictable and less appealing.
2. Higher Travel Costs and Currency Pressure: A weaker Canadian dollar has made U.S. trips more expensive, affecting hotel stays, dining, fuel, attractions, and shopping.
3. Stricter Visa and Travel Policies: Additional fees, stronger border vetting, and administrative hurdles have discouraged spontaneous or short-term trips.
4. Post-Pandemic Travel Behavior Shifts: Canadians are increasingly choosing domestic destinations or other international options perceived as more affordable or welcoming.
5. Reduced Air and Land Connectivity: Cuts to cross-border flights and declining land travel have made U.S. travel less convenient, with higher costs further limiting demand.
6. Competitive Alternatives Abroad: Countries like Mexico, the Caribbean, and parts of Europe have attracted Canadian travelers with lower costs and simplified entry requirements.

Michigan has joined Ohio, Illinois, Pennsylvania, North Dakota, and Montana in facing a sharp tourism downturn as Canadian travel to the United States falls steeply in 2025, cutting deeply into cross-border spending. The decline is being driven by higher travel costs, tighter border policies, currency pressure, and shifting travel preferences, leaving tourism-dependent border communities under growing economic strain.

The sustained drop in Canadian travel in 2025 serves as a clear warning for U.S. border states that depend heavily on cross-border tourism and spending. As visitor numbers fall and travel patterns shift, local economies built around hospitality, retail, and short-term tourism are facing mounting pressure. Without steps to ease travel frictions, address cost barriers, and rebuild cross-border confidence, the downturn risks becoming a longer-term challenge rather than a temporary setback for communities along the U.S.–Canada border.