Minnesota Joins Idaho, Montana, Washington, North Dakota and More US States Battling for Canadian Tourists, Resulting in Decline in Tourism Economy, New Research Reveals More: What You Need to Know About Latest Discoveries

Published on December 17, 2025

Minnesota joins Idaho, Montana, Washington, North Dakota, and more U.S. states battling for Canadian tourists, and it’s having a significant impact on the local tourism economy and this new research reveals more. This is what you need to know about the latest discoveries. As these states compete for the attention of Canadian travelers, the tourism economy is seeing a decline.

This decline is particularly notable in Minnesota, where Canadian tourists have historically played a vital role in supporting the state’s tourism industry. With Canadian visitor numbers dropping in Minnesota and neighboring states like Idaho, Montana, and Washington, the tourism sector is facing challenges.

The competition for these Canadian tourists has intensified, leading to reduced spending and fewer visits. This situation calls for urgent attention from travel and tourism sectors across these states, including Minnesota, to find innovative ways to reverse the trend. Read on to understand the causes behind this shift and what can be done to rejuvenate the tourism economy.

Canadian Tourism Plummets: A £5 Billion Economic Earthquake in the US

The long-standing bond between Canada and the United States has been rocked to its core. For years, Canadians have been the lifeblood of American tourism, bringing billions into the economy each year. However, a dramatic shift is unfolding. In a move that’s left the US tourism industry reeling, the number of Canadian visitors has collapsed, creating a massive hole in the US economy. The latest figures show that the United States is facing an eye-watering £5 billion loss, with no immediate solution in sight.

This crisis stems from a variety of political, economic, and social factors. For years, the flow of Canadians crossing the border for shopping sprees, summer vacations, and snowbird winters has kept states like Florida, Michigan, and California thriving. But that steady stream is now a trickle, and the damage is being felt everywhere from local businesses to state-run tourism departments.

Minnesota, a state known for its picturesque landscapes and vibrant cities, is experiencing a noticeable decline in Canadian tourism in 2025. As a historically important market, Canadian visitors have long contributed significantly to the state’s tourism economy. However, recent data from Statistics Canada and other tourism research organizations show a marked reduction in Canadian arrivals, especially by land, leading to concerns about the future of the industry in the region. This article examines the key factors behind this decline and what it means for Minnesota’s tourism sector.

The Growing Impact of the Decline in Canadian Visitors

One of the most significant sources of international tourism for Minnesota has been Canadian travelers. Canadians have long crossed the border into Minnesota, especially for leisure, shopping, and outdoor activities. Popular destinations such as the Boundary Waters Canoe Area, Minneapolis-St. Paul, and the North Shore have drawn thousands of Canadian visitors each year. However, 2025 has seen a sharp drop in Canadian arrivals to Minnesota, creating ripple effects across local businesses reliant on tourism dollars.

Official Data Reveals the Decline

Recent Statistics Canada reports highlight a substantial decline in Canadian tourism to the United States, and Minnesota has felt the impact. In June 2025, Canadian outbound travel to the U.S. was down 28.7% compared to the same month in 2024. This decrease was particularly noticeable in land crossings, as Canadian car trips to the U.S. dropped by 28.6% in November 2025. Air travel from Canada to the U.S. also saw a decline, with air arrivals down 17% in August 2025. While these figures represent a national trend, they also point to a specific downturn for Minnesota, especially in the northern border regions.

In addition to these declines, data from the U.S. Bureau of Transportation Statistics (BTS) shows that several land border crossings in Minnesota, such as the Pembina–Emerson Crossing, have reported reduced traffic in 2025, a clear indicator that fewer Canadians are visiting Minnesota this year. Although the BTS data doesn’t specify the exact nature of the travelers (i.e., tourists vs. business), the declining inbound passenger numbers from Canada are seen as a clear reflection of reduced tourism.

Factors Behind the Decline: Currency, Costs, and Competing Destinations

Several factors have contributed to the decline in Canadian travel to Minnesota. One of the most significant drivers is the exchange rate between the Canadian dollar and the U.S. dollar. A weaker Canadian dollar makes it more expensive for Canadians to visit the U.S., especially for those traveling by land. As a result, many Canadians are opting for more affordable domestic travel options or visiting other international destinations that may offer better exchange rates or travel packages.

Economic Uncertainty and Travel Preferences

Beyond the currency issue, economic factors also play a role in the decline. The COVID-19 pandemic recovery has reshaped the travel landscape, with many Canadians opting for closer destinations within Canada or to Mexico and Europe. Domestic travel within Canada has surged, with Canadians increasingly choosing to explore their own country rather than cross the border. Additionally, rising airline ticket prices and overall travel costs have made international trips less appealing for many Canadians, especially when considering the added costs of cross-border travel.

Shifts in Travel Behaviour: A Move Towards Closer and Cheaper Destinations

The decline in Canadian visitors is not unique to Minnesota — it’s part of a broader trend affecting several U.S. states with significant Canadian tourist traffic. Florida, California, and New York have also seen reductions in Canadian arrivals. However, the sharp decrease in Minnesota is particularly impactful because of the state’s heavy reliance on Canadian tourism for key markets, such as outdoor recreation in the Boundary Waters and cultural tourism in Minneapolis-St. Paul.

Furthermore, regional tourism competition from states like Michigan and Wisconsin has become more pronounced. These areas are increasingly marketing themselves as affordable alternatives for Canadian tourists seeking outdoor activities or urban experiences, leading to a decline in Minnesota’s market share of Canadian visitors.

What Does This Mean for Minnesota’s Tourism Industry?

The tourism sector in Minnesota is a major contributor to the state’s economy, supporting thousands of jobs in hospitality, retail, and service industries. The decline in Canadian tourists, especially those who travel by car, is affecting businesses such as hotels, restaurants, retail shops, and tour operators. According to industry experts, local businesses are experiencing a drop in revenue, particularly in areas close to the U.S.-Canada border, such as Duluth and Grand Marais, where Canadian tourists have traditionally made up a significant portion of the customer base.

Moreover, the tourism board and local tourism agencies are being forced to rethink their marketing strategies to attract visitors from new markets. While Canadian tourism has historically provided a steady flow of visitors, local tourism professionals are looking for ways to tap into emerging markets in Asia, Europe, and South America, which have shown growth in outbound travel to the U.S.

Looking Ahead: Adapting to the Changing Landscape

Despite the current decline in Canadian tourism, there are signs that Minnesota’s tourism industry is adapting. The Minnesota Department of Employment and Economic Development (DEED) and other regional organizations are working to diversify the state’s tourism base. Initiatives include marketing campaigns aimed at attracting new visitors from diverse regions and promoting Minnesota’s unique attractions — including Frank Lloyd Wright architecture, state parks, and arts and culture scenes in Minneapolis and Saint Paul.

Additionally, tourism professionals are calling for greater collaboration between local businesses, the state tourism office, and airlines to create affordable travel packages and cross-border partnerships that can help mitigate the impact of reduced Canadian visits.

Final Thoughts: Adjusting to a New Reality

The decline in Canadian tourism to Minnesota is a complex issue, driven by a combination of economic, currency, and travel preference factors. However, with innovative marketing strategies, diversification of target markets, and improved collaboration between stakeholders, Minnesota’s tourism industry can adapt to these changing trends. While Canadian tourism may take a temporary hit, the state’s rich cultural and natural assets remain strong attractions for visitors worldwide.

The key to reversing this trend lies in engaging with both domestic and international travelers, finding ways to reduce travel costs, and positioning Minnesota as an attractive destination for a wider audience. As tourism professionals continue to explore new strategies, it is clear that Minnesota’s tourism future remains full of potential — despite the challenges posed by the decline in Canadian visitors.

The Northern Border Crisis: New Hampshire, Vermont, and Maine Suffer the Most

New Hampshire and Vermont: Once a Canadian Favourite Now in Crisis

New Hampshire and Vermont have been hit hardest by the Canadian tourism collapse. Once thriving off the steady stream of Canadians during summer holidays and camping trips, these states are now facing a bleak reality. New Hampshire, known for its natural beauty and charming small towns, has seen a 30% drop in Canadian visitors. This downturn has devastated local businesses, particularly those relying on the snowbird and summer crowd. The most shocking figure? State-run campground reservations in New Hampshire have plummeted by 71%, a clear indication of how deep the problem runs.

Further north, Vermont is facing a 28% reduction in border crossings, but the economic toll is far more dramatic. Canadian spending—a crucial driver for Vermont’s local economy—has dropped by an astonishing 49%, especially in small towns like Waterbury, where hotels and restaurants are now struggling to survive.

Maine: Once a Quebecer’s Dream Destination, Now Facing Tourism Decline

In Maine, the Canadian exodus is sending shockwaves through local economies. Quebecers, once frequent visitors to Bar Harbor and Old Orchard Beach, have dramatically reduced their trips. This has led to a 20-25% decline in Maine’s tourism revenue, with businesses feeling the sting. The CAT Ferry, which links Bar Harbor to Nova Scotia, has already reported a 20% drop in business, and Old Orchard Beach—a tourist hotspot—is witnessing a staggering 50% decline in visitors.

For Maine, this is a crushing blow. The economic impact is more than just numbers; it’s about livelihoods. Local shops, hotels, and restaurants built around the dependable flow of Canadian tourists are now struggling to stay afloat.

Great Lakes Region Faces Meltdown: Michigan, Ohio, and Illinois in Crisis

Michigan: The Fall of a Giant – Detroit and the Upper Peninsula Struggle

The Great Lakes region, particularly Michigan, is reeling from the decline in Canadian tourism. Detroit, once a hub for Canadian shoppers, has seen a 30% drop in Canadian visitors. The Upper Peninsula, known for its stunning lakeside views and outdoor adventures, has been hit just as hard. Hotels are empty, and restaurants report fewer Canadian patrons. Even worse, reports indicate a 17.3% drop in international overnight stays in Detroit, almost entirely due to the decline in Canadian tourism. Retailers that once relied on Canadian shoppers are also facing mounting losses.

Ohio: Cleveland’s Cultural Loss and Lake Erie’s Tourism Slump

Further south, Ohio has felt the sting of fewer Canadians coming to Cleveland and the Lake Erie region. Historically, these areas attracted Canadians for cultural events, festivals, and sporting events. However, with a 25% drop in Canadian tourism, local businesses are facing a battle for survival. From hotels to restaurants, the loss of Canadian visitors is shaking Ohio’s tourism economy to its foundations. Without Canadian support, these states are now scrambling to attract new visitors.

Illinois: Chicago Sees Canadian Shoppers Stay Home

In Illinois, the city of Chicago, once a hotspot for Canadian shoppers and diners, is now facing a 25% decline in bookings from Canadian tourists. With the loss of their Canadian clientele, hotels are seeing fewer bookings, and restaurants report empty tables. This drop is further exacerbated by a reduction in retail traffic, hitting the Magnificent Mile and other shopping districts that once thrived thanks to Canadian tourists.

The Western US: Washington, Montana, and Minnesota Endure Major Setbacks

Montana: Canadians Make Up 80% of Visitors – The Loss is Catastrophic

In Montana, where Canadians made up a staggering 80% of international visitors, the Canadian tourism decline is nothing short of catastrophic. With border crossings down by 19%, businesses across the state are reeling. In Kalispell, a popular gateway to Glacier National Park, Canadian spending has decreased by 44%, while hotel bookings have fallen by 25%. Local businesses report losses of up to $38,000 from a single canceled sports team booking. The toll on the state’s economy is immediate and severe, with Montana losing vital tourism revenue from its most loyal customers.

Washington and Minnesota: The Pacific Northwest and the Upper Midwest Struggle

In Washington State, Seattle and Spokane have experienced a 24% decline in Canadian tourism. Spokane, known for its outdoor recreation and natural beauty, reported a 33% drop in visitors from Canada, sending ripples through local businesses. Meanwhile, Minnesota is seeing similar trends, with 19% fewer Canadian tourists visiting Minneapolis-St. Paul. Retailers and service providers, heavily reliant on Canadian spending, are now facing tough decisions about their futures.

Sunbelt States Hit Hard: Florida, California, and Nevada Experience Major Losses

Florida: The Snowbird Exodus – A $2 Billion Loss

Florida, the home of the Canadian snowbird, is facing its own crisis. The 18% drop in Canadian tourists has deeply affected cities like Miami and Orlando. Canadian snowbirds, who traditionally flock to Florida for extended stays, are opting to stay home due to political tensions and the unfavorable exchange rate. $2 billion in losses are predicted for the state’s tourism economy. The snowbird exodus has left many hotels and rental properties struggling to fill their rooms, and local businesses are seeing fewer Canadian dollars spent on shopping and dining.

California and Nevada: The West Coast Contraction

On the West Coast, California and Nevada are also suffering. California has reported a 19% drop in Canadian tourism, particularly in cities like Los Angeles and San Francisco. From Hollywood tours to Beverly Hills shopping, Canadians are no longer visiting in the numbers they once did. Meanwhile, Nevada’s Las Vegas has seen a 33% decline in Canadian visitors, as fewer Canadians fly to the gambling capital of the world. $1.5 billion in losses is expected from these two states alone, as gambling and entertainment revenues plummet.

The Political and Economic Factors Driving the Canadian Exodus

Political Tension and Tariffs

Political hostility between the United States and Canada has created a chilling effect on tourism. The tariffs on Canadian goods, coupled with the uncertainty of trade relations, have made many Canadians hesitant to visit the US. Border anxiety, fueled by reports of stringent policies, has also dampened the desire to cross into the US, with some Canadians opting to stay closer to home.

Currency Crisis: The Weak Canadian Dollar

The Canadian Dollar’s weakness against the US Dollar has made travel to the US much more expensive. This has made Canadian tourism less attractive, especially in states with high hotel and retail prices. The result is a growing shift in Canadian travel habits, with many opting for cheaper destinations.

The Long-Term Consequences: A Shared Economic Future in Jeopardy

The US tourism industry has lost an estimated $20.5 billion due to this Canadian exodus. The economic ramifications are severe. With Canadian tourists spending billions annually, the US risks losing a vital source of international revenue. The long-term effects could be catastrophic, as businesses that have relied on Canadian visitors for decades are now struggling to survive.

Conclusion: The Battle to Reclaim Lost Tourism

The Canadian tourism crisis has far-reaching consequences for the US economy. From Michigan to Florida, the loss of Canadian tourists has created a vacuum that many states may struggle to fill. The US tourism industry needs urgent solutions to restore the flow of Canadian visitors, which has historically been one of its most reliable sources of revenue. Until political tensions are eased and economic conditions improve, the future of this once-thriving tourism market remains uncertain.