New York Joins Washington States Michigan, Minnesota, North Dakota, And Few Others In Unprecedented Economic Damage As Canadian Tourism Plummets In 2025

Published on December 23, 2025

In 2025, US border states are facing significant economic strain due to the sharp decline in Canadian tourism. This sudden drop has had a profound impact on local businesses that have long depended on cross-border traffic. Washington, Michigan, Minnesota, North Dakota, Vermont, and Maine are among the hardest-hit states. These regions have historically benefited from a steady stream of Canadian visitors, contributing millions in revenue. However, with fewer Canadians crossing the border in 2025, local industries such as hospitality, retail, and tourism are seeing major setbacks. Reduced visits have led to empty hotel rooms, lower restaurant sales, and job losses, leaving many communities struggling to adjust. In this article, we explore how these states are dealing with the economic toll and the factors contributing to this decline in Canadian tourism. Understanding this shift is essential for gauging the future of U.S. border economies.

New York: Significant Drop in Canadian Visits Hits Border Economy

Overview
New York — especially its northern border regions — has experienced a pronounced downturn in Canadian tourism in 2025. Long before this year, many Canadians routinely crossed into New York for road‑trip visits, shopping, sightseeing, and seasonal vacations. In 2025, however, this pattern has changed sharply, leaving local businesses and tourism operators worried about the long‑term effects.

Visitor Decline
Data from cross‑border travel sources indicates that Canadian road travel into New York fell by around 30.5% in October 2025 compared with the same period in 2024. This decline in Canadian travellers has directly reduced footfall in key entry points such as Alexandria Bay, Ogdensburg, and Massena — towns that depend heavily on cross‑border tourism.

Regional Impact — Thousand Islands Area
The Thousand Islands region, one of New York’s most popular attractions for visitors from eastern Ontario, has seen particularly severe effects. Local tourism authorities reported a 60% loss in Canadian‑spending revenue on the New York side of the region compared with prior years. This steep decline reflects both fewer arrivals and lower overall tourist expenditure.

Economic Toll on Businesses
Canadian visitors previously accounted for about 15% of visitor spending in some border communities. With that share shrinking, sectors such as restaurants, fuel stations, retail shops, grocery stores, and local attractions have seen noticeable drops in customer traffic and revenues. Many tourism operators in these communities now describe their business conditions as strained and uncertain due to the continued absence of Canadian travellers.

Broader Causes Behind the Decline
The reduction in Canadian trips to New York has been linked to a combination of political tensions, tariffs, and negative sentiment towards travelling to the United States. Surveys indicate that a large share of Canadians have cancelled or postponed U.S. vacations due to economic policy concerns and perceptions of less‑friendly border experiences.

Tourism Revenue Loss Beyond Local Areas
According to broader tourism data, the decline in Canadian travel is contributing to an estimated multi‑billion‑dollar drop in overall international tourism spending in the United States in 2025. New York, as one of the major states impacted by this trend, has seen significant reductions in cross‑border tourism receipts compared with prior years.

Outlook for Recovery
Local tourism leaders in New York remain hopeful that Canadian travel may recover gradually, but many consider the timeline uncertain. Improvements in diplomatic relations, trade policy changes, and marketing efforts aimed at reinvigorating cross‑border travel could be key factors influencing whether Canadian visitor numbers rebound in 2026 and beyond.

Washington State: A Major Impact on Local Businesses

Overview
Washington, particularly cities like Seattle and Bellingham, is one of the most affected U.S. states due to its proximity to Canada. Historically, Canadian tourists made up a substantial portion of Washington’s visitor economy, especially in regions near the border.

Key Statistics

• Visitor Decline: A 24% drop in Canadian visitors to Washington in 2025.
• Impacted Sectors: Hotels, restaurants, and retail businesses that once thrived on Canadian customers are now facing significant financial hardship.
• Job Losses: Many businesses have reduced hours or laid off workers as tourism-related jobs become scarce.
• Hotel Industry: Hotels are reporting empty rooms during what should be peak tourist seasons, with Canadian guests no longer filling the space.

Reasons for Decline
The decline in Canadian visits to Washington can be attributed to:

• Political Tensions: Trade disputes and tariffs have created uncertainty for Canadian travellers.
• Rising Travel Costs: Increased fuel prices and airfares have made travel to the U.S. less appealing for Canadians.
• Tighter Border Regulations: The more complex and stricter border processes have made cross-border trips less attractive.

Economic Toll
The tourism industry in Washington state has reported millions of dollars in lost revenue, affecting both large cities and small border towns. Local shops that once depended on Canadian shoppers are now struggling to stay afloat.

Michigan: Detroit and Border Towns Feel the Pain

Overview
Michigan, especially Detroit and the Upper Peninsula, is feeling the economic strain from the sharp drop in Canadian visitors. The state has long relied on its close relationship with Canadian cities like Windsor, but that bond has weakened in 2025.

Key Statistics

• Visitor Decline: Canadian tourism to Michigan has fallen by 20% in 2025 compared to previous years.
• Impacted Sectors: The hotel, retail, and restaurant sectors are reporting reduced customer traffic.
• Tourism-related Revenue Loss: Michigan’s tourism boards estimate millions of dollars lost in spending due to fewer Canadians crossing the border.

Reasons for Decline
Factors contributing to this decline include:

• Political and Trade Tensions: The ongoing trade conflicts and tariffs between the U.S. and Canada have impacted Canadians’ willingness to travel to Michigan.
• Stronger Domestic Options: Canadian tourists are now opting to visit destinations closer to home, especially with Canada’s own thriving tourism sector.
• Rising Travel Costs and Border Hassles: The costs associated with international travel and lengthy border delays have made many Canadians reconsider their trips to Michigan.

Economic Toll
Local businesses in Michigan, particularly along the Canadian border, are struggling with reduced foot traffic and lower sales. The state’s hospitality sector is feeling the pinch, and jobs tied to cross-border tourism are at risk.

Minnesota: The Northern Gateway Faces Economic Trouble

Overview
Minnesota, with its proximity to Canada, is another state that has seen a sharp reduction in Canadian tourists. Areas such as Duluth, Minneapolis, and border towns have been particularly hard hit by the loss of visitors from across the northern border.

Key Statistics

• Visitor Decline: 25% fewer Canadian visitors have come to Minnesota in 2025.
• Impacted Sectors: Tourism-dependent businesses such as hotels, restaurants, and transportation services are suffering.
• Revenue Losses: The state has experienced a $100 million drop in tourism-related revenue in 2025 due to fewer Canadian visitors.

Reasons for Decline
The decline in Canadian visitors to Minnesota can be attributed to several factors:

• Economic Factors: Higher travel costs, including gasoline and airfare, have deterred Canadians from crossing the border.
• Border Delays: Tighter border security and wait times have made the journey less convenient and more frustrating for Canadian travellers.
• Domestic Tourism Growth: Canadians are opting for local travel within their own country instead of venturing into the U.S.

Economic Toll
Minnesota’s local economies are facing job losses in the tourism sector, especially in small businesses that rely heavily on Canadian tourism. Many of these businesses are unable to sustain operations as the flow of Canadian visitors dries up.

North Dakota: Small Border Towns Struggle

Overview
North Dakota, particularly its border towns, is experiencing the effects of the tourism slump. These small towns, which rely on cross-border traffic, are facing severe economic strain as Canadians cut back on visits.

Key Statistics

• Visitor Decline: North Dakota has experienced a 25% decline in Canadian tourists in 2025.
• Impacted Sectors: Hotels, restaurants, and retail businesses that once catered to Canadian visitors are now struggling with fewer customers.
• Job Losses: Many local jobs tied to the tourism sector are in jeopardy due to reduced cross-border traffic.

Reasons for Decline
The decline is due to a mix of factors:

• Economic Pressures on Canadians: The rising cost of travel, combined with currency exchange concerns, has made U.S. travel less attractive.
• Political Uncertainty: Ongoing trade issues between the U.S. and Canada have led to a sense of uncertainty among Canadian travellers, further discouraging trips to North Dakota.
• Easier Domestic Options: With more Canadians opting for in-country travel, many have stopped making cross-border trips.

Economic Toll
North Dakota’s border communities are feeling the pinch as retailers and service providers face significant reductions in revenue. The decline in tourism has forced businesses to cut back on staff or reduce their services, further hurting local economies.

Vermont: A Hit to the Heart of Tourism

Overview
Vermont, known for its natural beauty and vibrant fall foliage, has long been a favourite destination for Canadian tourists. In 2025, however, the state has seen a significant drop in Canadian visits.

Key Statistics

• Visitor Decline: Vermont has seen a 18% reduction in Canadian tourism in 2025.
• Impacted Sectors: Hotels, bed and breakfasts, and restaurants are all feeling the effects.
• Tourism Revenue Losses: Vermont has reported a $30 million drop in tourism-related revenue due to fewer Canadian visitors.

Reasons for Decline
The reasons for this decline include:

• Rising Costs of Travel: With the cost of travel rising, many Canadians are opting to stay within their own country instead of heading south to Vermont.
• Border Delays and Policies: The increased difficulty of crossing the border has made many Canadian visitors less inclined to make the trip.
• Domestic Travel Boom: Many Canadians are now exploring other parts of Canada, leaving Vermont to compete for a shrinking pool of international visitors.

Economic Toll
Vermont’s tourism-dependent businesses are feeling the pressure. Hotels are reporting empty rooms during peak seasons, and restaurants are seeing lower-than-usual traffic. This is particularly damaging for small businesses that rely heavily on Canadian customers.

Maine: Reduced Canadian Traffic Dampens Economy

Overview
Maine, with its coastal charm and access to nature, has been another state hit by the decline in Canadian tourism. The state’s tourism industry has long depended on Canadian visitors, but in 2025, the numbers have fallen significantly.

Key Statistics

• Visitor Decline: Maine has experienced a 20% drop in Canadian tourists in 2025.
• Impacted Sectors: Coastal tourism, hotels, and seafood restaurants are the hardest hit.
• Revenue Losses: Maine is seeing a $50 million loss in tourism revenue, with fewer Canadians visiting for summer vacations and autumn foliage trips.

Reasons for Decline
The decline in Canadian visits can be attributed to:

• Increased Costs of Travel: Travel expenses, including rising airfare and fuel prices, have made it less appealing for Canadians to visit Maine.
• Political Climate and Border Hassles: Tensions between the U.S. and Canada, along with delays at the border, have discouraged Canadian travellers from making the trip.
• Alternative Travel Options: More Canadians are staying within their own country, taking advantage of domestic tourism opportunities rather than crossing the border into Maine.

Economic Toll
Maine’s coastal communities are experiencing lower foot traffic and fewer bookings for local attractions. The state’s reliance on Canadian tourism has left it vulnerable to these declines, with businesses struggling to adapt to the changes.

Conclusion: A Growing Challenge for U.S. Border States

The decline in Canadian tourism has left six U.S. border states — Washington, Michigan, Minnesota, North Dakota, Vermont, and Maine — grappling with significant economic challenges. With the loss of millions of dollars in tourism-related revenue, these states are facing a future where cross-border tourism may not return to pre-2025 levels anytime soon. As political tensions, rising travel costs, and shifting travel preferences continue to affect the flow of Canadian visitors, U.S. border states will need to adapt quickly to mitigate the economic damage and rebuild their tourism industries.