US Travel Continues to Hammer Canada Hard Including in Ontario, Quebec, and British Columbia as Tourism Plunges by Around Four Percent in the First Six Months of 2025

Published on September 27, 2025

By: Rana Pratap

US is still seen as the most significant contributor to Canada’s tourism which includes the first half of 2025 when US travel to Canada declined by around four percent year-over-year due to border and geopolitical conditions. Such a decline in visitation was especially harmful to US-dependent border provinces such as Ontario, Quebec, and British Columbia. The 5.2% increase in overseas visitation as such is a clear indication of the decline in visitation from the US. This decline has contributed to a 2% overall drop in Canada’s tourism, with US tourists boycotting Canada in a tit-for-tat response, just as many Canadians have reduced travel to the US.

The Importance of US Tourists to Canada’s Tourism Industry

The United States has always been a major contributor to Canada’s tourism industry. With both countries sharing a long border and cultural ties, American tourists have been a primary source of visitors to popular Canadian destinations such as Ontario, Quebec, and British Columbia. US tourists travel to Canada for leisure, business, family visits, and special events. This steady influx of visitors has bolstered Canada’s hospitality, transport, and retail industries.

However, the 3.8% decrease in US tourism in 2025 is a significant concern. US tourists typically spend more than international visitors, and their absence affects not only the Canadian economy but also the livelihoods of businesses relying on tourism. The fall in US visitors is particularly alarming because it marks a departure from the steady flow of tourists that Canada has long depended on.

Decline in US Tourism: A Deepening Concern

In the first half of 2025, the number of US tourists visiting Canada fell by 3.8%, continuing a downward trend. This decline is attributed to several factors, including rising travel costs, exchange rate fluctuations, and increased competition from other international destinations. The high costs of travel, including fuel prices and inflation, are making Canadian trips less affordable for many American travellers. Additionally, a shift in travel preferences, with US tourists opting for closer or more exotic destinations, has further decreased the number of visitors to Canada.

Despite the drop in US tourists, some provinces are feeling this decline more severely than others. Ontario, Quebec, and British Columbia, traditionally popular with US visitors, have been hit hard. These provinces, which rely on US tourism to fill hotel rooms, attractions, and services, are seeing a noticeable reduction in revenue.

Ontario: A Major Hit to Tourism Revenue

Ontario, home to Canada’s largest city, Toronto, and the world-renowned Niagara Falls, has long relied on US tourism. However, the decline in American visitors in 2025 has significantly impacted the province. High costs, changing travel habits, and other competing destinations have led US tourists to explore alternative travel options.

This downturn has resulted in fewer tourists visiting Ontario’s attractions, affecting businesses in the hospitality, transport, and retail sectors. Popular destinations like Niagara Falls, Toronto’s CN Tower, and Ontario’s museums are seeing fewer US tourists, leading to lower revenues and job cuts in the tourism industry. For Ontario, this is a worrying trend that needs immediate attention if the province hopes to recover.

Quebec: A Cultural Centre Facing Setbacks

Quebec, known for its rich history, vibrant culture, and French influence, has always drawn American tourists to cities like Montreal and Quebec City. But in 2025, Quebec is also feeling the impact of the drop in US tourism. The province’s bustling cultural scene, festivals, and historic architecture typically attract large numbers of US visitors. However, fewer Americans are making the trip across the border.

The hospitality sector is feeling the strain, with hotels and restaurants reporting lower bookings. Local businesses that depend on US tourism are facing difficult times, and Quebec is struggling to maintain its position as a top tourist destination. Quebec needs to adapt and find new ways to attract tourists while preserving its cultural appeal.

British Columbia: The Beauty of Nature Meets Declining Visitor Numbers

British Columbia, famous for its stunning landscapes and outdoor adventures, has also experienced a decline in US tourism. Vancouver, a city surrounded by mountains, forests, and oceans, has long been a favourite for US travellers. The region’s natural beauty, ski resorts, hiking trails, and cultural sites have drawn thousands of visitors. However, in the first half of 2025, British Columbia has seen a notable decrease in tourism numbers.

The lack of US tourists is affecting not only the hotel and restaurant industry but also outdoor tourism activities like hiking, skiing, and sightseeing. British Columbia’s tourism sector is now at a crossroads, needing to find ways to diversify and attract tourists from other markets to fill the gap left by American visitors.

Overseas Visitors: A Bright Spot in a Slower Market

While the US market continues to struggle, there has been some positive news from overseas tourism. International visitors to Canada have increased by 5.2% year-on-year in the first half of 2025, showing that there is still strong demand for Canadian destinations from other countries. This growth comes primarily from markets in Europe, Asia, and South America, with notable increases in visitors from China and France.

Despite this positive growth, overseas tourism has not been enough to offset the decline from US visitors. International tourists tend to visit Canada for different reasons, and their spending patterns may differ from those of US visitors, meaning they do not have the same economic impact. However, this growth is still encouraging and indicates that Canada’s tourism industry is not entirely reliant on the US market.

Visitor Growth from Key Overseas Markets

The increase in visitors from international markets has been significant in some cases. For example, the United Kingdom saw a month-over-month increase of 27.6%, with 103,332 visitors. This surge is encouraging, as it shows that Canadian tourism is still appealing to British travellers. Similarly, France saw an 8.9% month-over-month increase, attracting 54,681 visitors. These numbers suggest that Canada continues to be a desirable destination for Europeans.

On the other hand, some overseas markets have experienced declines. For instance, India saw a 6.0% decrease in visitors, with only 70,290 tourists arriving in the first half of 2025. Australia also experienced a drop of 3.7%, with 38,515 visitors. These reductions highlight the challenges Canada faces in diversifying its tourism base and attracting visitors from all over the world.

Why the Drop in US Tourism Matters

The 3.8% drop in US tourism is a major concern for Canada. US visitors not only make up a large portion of the country’s tourism revenue but also support thousands of jobs in industries like hospitality, transport, and retail. Fewer US tourists mean lower revenue, fewer jobs, and a less vibrant economy in regions that depend on tourism.

The decline in US tourism has broader implications for Canada’s overall tourism economy. While international markets show growth, they cannot replace the volume of US visitors. For example, while China saw a 32.2% increase in visitors, with 43,335 people coming to Canada, this growth is still not enough to make up for the gap left by US tourists.

What’s Causing the Decline in US Tourism?

Several factors are contributing to the drop in US tourism. The rising cost of travel, particularly fuel prices and inflation, has made Canada a more expensive destination for US tourists. The exchange rate also plays a role, as a stronger US dollar compared to the Canadian dollar means Americans may find it cheaper to travel elsewhere.

Additionally, shifting travel habits, with more US tourists opting for closer or more exotic destinations, have contributed to the decline. With global tourism expanding, Canada faces increasing competition for US tourists, making it more difficult to maintain a dominant position in the North American tourism market.

The Road Ahead for Canadian Tourism

Despite the current challenges, there is hope for Canadian tourism. The growth in international visitors shows that there is still strong interest in Canadian destinations. To mitigate the impact of declining US tourism, Canada’s tourism sector must diversify, targeting new international markets, strengthening domestic tourism, and offering unique experiences.

With more Canadians choosing to vacation within their own country, there is an opportunity for local businesses to benefit from the growing demand for domestic travel. This shift towards staycations and local tourism can help to support businesses in regions affected by the drop in US visitors.

US travel to Canada has dropped by around 4% in the first half of 2025, heavily impacting provinces like Ontario, Quebec, and British Columbia, largely due to border and geopolitical issues. This decline has contributed to a 2% overall drop in Canada’s tourism, with US tourists boycotting Canada in a tit-for-tat response, just as many Canadians have reduced travel to the US.

Navigating a Changing Landscape

The first half of 2025 has seen a worrying decline in US tourism to Canada, with a 3.8% drop in visitors. Ontario, Quebec, and British Columbia have felt the impact most, with fewer US tourists visiting popular attractions and spending less money in local businesses. Although overseas tourism is growing, it has not been enough to counterbalance the loss of US visitors.

Canada’s tourism industry must adapt by exploring new international markets, focusing on domestic tourism, and finding innovative ways to attract visitors. While the decline in US tourism presents a challenge, it also presents an opportunity for the country to diversify its tourism offerings and strengthen its position in the global tourism market.