New York Joins Washington, Michigan, Vermont Detroit and More See Sharp Drop in Canadian Tourists as US Travel Takes a Hit What This Means for Your Next Trip

Published on December 10, 2025

The quiet streets of Fargo, North Dakota, and the quaint town of Colebrook, New Hampshire, tell a story of economic strain as U.S. businesses that have long depended on Canadian visitors now find themselves struggling to keep their doors open. A dramatic drop in tourism from Canada has left these communities facing fewer customers, weaker sales, and mounting uncertainty.

This sharp decline in Canadian tourism is being felt all across the U.S.-Canada border, from New England to the West Coast. According to recent data from U.S. Customs and Border Protection (CBP) and Statistics Canada, passenger vehicle crossings from Canada into the U.S. fell by almost 20% from January to October 2025, compared to the same period in 2024. In some states, the decline is even more pronounced, with numbers dropping by up to 27%, leaving businesses reeling from lost revenue.

Decline in Canadian Visitors: What the Numbers Show

Government data confirms the scale of the tourism slump. U.S. Customs and Border Protection (CBP) reports a notable dip in Canadian visitors, which has heavily impacted tourism-dependent industries in border states like North Dakota, New Hampshire, and Vermont. The U.S. government’s Traveler and Conveyance Statistics reveal that the U.S.-Canada border saw a marked reduction in the number of cars and trucks crossing, directly correlating with fewer tourists visiting U.S. border communities.

This sudden decline has led to severe economic consequences for businesses that traditionally rely on Canadian tourists for a significant portion of their revenue. Local hotels, shops, and attractions are reporting lower foot traffic, increased vacancies, and, in some cases, closures. It’s a bitter blow to cities that once relied on the close-knit relationship between the U.S. and Canada.

One of the most affected regions is Fargo, North Dakota, where tourism chiefs have spoken out about the devastating consequences of the drop in Canadian visitors. Shirley Hughes, president of Visit Fargo-Moorhead, explained that fewer Canadian tourists are visiting the area, resulting in decreased hotel demand and weaker sales. “These aren’t just numbers; these are missed opportunities for local businesses and a serious strain on our community’s economy,” she said.

Emotional Impact on Local Communities

The loss of Canadian visitors is more than a financial blow for many towns; it also impacts the emotional fabric of local communities. In Colebrook, New Hampshire, Elizabeth Guerin, the owner of the Fiddleheads gift shop, lamented the drastic change: “Being only eight miles from the border, Canadians used to make up 15-25% of our visitors. Now, I can count the number of Canadian visitors on one hand.”

This sense of loss is felt deeply in communities where Canadian tourists are not just customers but neighbors, friends, and family members who have visited for generations. The cross-border bond has been a vital part of these communities’ identities, and its sudden unraveling has left many small-town business owners struggling to adapt.

In Waterbury, Vermont, Christa Bowdish, owner of the Old Stagecoach Inn, expressed similar concerns. “This is long-lasting damage,” she said. “While people aren’t visiting Vermont, they’ll be finding new places to visit, making new memories. It’s hard to know if we’ll ever get that business back.”

Factors Behind the Decline: Tariffs, Currency, and Political Tensions

The steep decline in Canadian visitors comes on the heels of rising tariffs, a weakened Canadian dollar, and heightened political tensions between the U.S. and Canada. Analysts point to President Trump’s trade policies and his frequent public criticisms of Canadian leadership as factors that have soured relations and discouraged Canadian tourists from traveling south. The ongoing uncertainty regarding cross-border policies has only exacerbated the situation, causing many Canadians to reconsider or cancel their trips to the U.S.

A combination of these factors has shifted the travel habits of many Canadians. With the Canadian dollar struggling against the U.S. dollar, many tourists are choosing to stay closer to home or look to alternative destinations overseas. In addition, some Canadians are opting for domestic trips within Canada, which are more affordable and politically neutral.

One example is Bellingham, Washington, a city that has traditionally attracted large numbers of Canadian visitors. Kevin Coleman, the executive director of SeaFeast, an annual festival in Bellingham, reported a sharp drop in Canadian attendance at this year’s festival. “Since March 2025, we’ve seen Canadian traffic plummet. We knew by then that we could no longer rely on our Canadian business, and it’s hit us hard,” Coleman said.

Rebuilding and the Road Ahead

The question on many business owners’ minds is whether Canadian tourism will return to its former levels. Maggie Hassan, U.S. Senator from New Hampshire, voiced concerns about the long-term implications of the downturn, emphasizing the deep-rooted ties between the U.S. and Canada. “For generations, Canadians have visited New Hampshire and other border states to see family, shop, and dine. The erosion of these ties is damaging not just to our economies but to our shared cultural bond,” she said.

For the affected border towns, the road ahead is uncertain. Some businesses are hoping that a shift in U.S. foreign policy or a stronger Canadian dollar could encourage Canadian tourists to return. However, many worry that once Canadians establish new travel habits, they may not return to their old cross-border destinations.

In the meantime, local tourism agencies and business leaders are working together to adapt. They are diversifying their offerings, increasing outreach to domestic travelers, and promoting local attractions in an attempt to fill the void left by Canadian visitors. However, it remains to be seen whether these efforts can make up for the financial losses businesses have experienced.

The Emotional Cost for Small-Town America

The emotional toll of this decline is felt by many small-town business owners who have built relationships with their Canadian customers over the years. Scott Osborn, president of Fox Run Vineyards in Penn Yan, New York, explained that Canadian tourists, who make up about 10% of his business, are vital to the winery’s operation. “Fewer cross-border travelers mean fewer wine tastings and fewer tours,” he said. “It’s a ripple effect that touches every aspect of our business.”

As border communities like Fargo, New Hampshire, and Bellingham try to weather this storm, the human element remains at the forefront of their efforts to revive the once-thriving tourism industry. They are fighting not just for their businesses but for the return of a community connection that has spanned decades. Whether or not that bond can be restored remains to be seen.

Will Canadian Tourism Return?

As the U.S. border states grapple with the effects of a dramatic drop in Canadian tourism, the future remains uncertain. While there are signs of hope for eventual recovery, many communities are facing long-term challenges. Whether these businesses can reclaim the Canadian market or form new bonds with other international visitors is a question that only time will answer.

Despite the hardship, these border towns are resilient. Business owners are learning to adapt, diversifying their offerings, and forging new partnerships to keep their economies afloat. For now, however, it’s clear that the absence of Canadian tourists has left an indelible mark on these once-vibrant communities.