Washington Joins Maine, New York, Michigan, North Dakota and More US States in Dark Cloud, Freezing Millions in Tourism Economy with Canadian Tourists Ditching America, New Research is Here

Published on January 7, 2026

By: Tuhin Sarkar

In 2025, Washington joins Maine, New York, Michigan, North Dakota, and several other U.S. states, is facing a tourism crisis of monumental proportions. The tourism economy of these states has been plunged into a dark cloud as Canadian tourists are ditching America in record numbers. The decline in Canadian tourism has been sharp, with millions in tourism revenue now frozen due to this dramatic shift. With Canadians no longer flocking to U.S. border towns for shopping, vacations, and entertainment, the economic impact has been swift and severe.

The latest research shows that Washington, Maine, New York, and other border states are suffering from the loss of Canadian visitors, a crucial economic driver for these regions. This isn’t just a temporary slump—tourism revenue losses are mounting and businesses are struggling to survive. Canadians are increasingly choosing to stay home or explore international destinations, and the U.S. tourism sector is now left reeling.

As tourism economies freeze, states like Michigan and North Dakota are on the brink of a financial disaster. The full extent of the crisis is still unfolding, but one thing is clear: Canadian tourists are no longer heading south, and the impact on the U.S. economy is profound. Read on to discover how this tourism crisis is affecting the U.S. economy and what could be done to turn the tide.

In 2025, a staggering shift has occurred at the U.S.-Canada border, as Canadians across the country turn their backs on the United States. From British Columbia to Ontario, Alberta, and beyond, Canadians are choosing to stay home or explore other international destinations rather than heading south to the U.S. This massive decline in travel has sent shockwaves through the US economy, especially in border states and cities that have long relied on Canadian tourists.

With vehicle crossings and air travel plummeting by as much as 30% in certain areas, the American tourism sector is facing an economic collapse it did not foresee. What has led to this dramatic downturn? Let’s dive into the details and explore how each US state bordering Canada has been impacted by this travel slump and what it means for the future of cross-border tourism.

Washington State: A Hard Hit as Canadian Visits Plummet by 25%

In Washington, the once-thriving cross-border tourism market has been decimated. With Canadian visitors constituting a significant portion of the state’s tourism industry, the 35% decline in vehicle crossings at major points like Peace Arch and Pacific Highway has sent U.S. businesses scrambling.

According to official data from U.S. Customs and Border Protection (CBP) and reports from other media Washington’s border towns—such as Bellingham and Seattle—are feeling the sting, with tourist-driven businesses like hotels, restaurants, and retail stores reporting a major drop in revenue.

In fact, Canadian tourists are now avoiding U.S. cities like Seattle, preferring to explore local destinations or travel further abroad. The loss of Canadian shoppers has become a huge problem for Washington state’s economy, with business owners feeling the pressure as the U.S.-Canada travel connection weakens.

New York: Niagara Falls and U.S. Border Economy in Crisis as Canadian Visits Fall by 22%

For New York, cross-border tourism has long been a major contributor to its economy, especially in cities like Niagara Falls, where Canadian tourists have flocked for decades. However, in 2025, the drop in Canadian travel has been significant.

Vehicle crossings at the Rainbow Bridge have seen a 22% decline, and according, local businesses are feeling the impact of fewer Canadians crossing into the U.S. for shopping and sightseeing. Tourism revenue in Niagara Falls, historically one of the most visited destinations by Canadians, has taken a massive hit, with local businesses forced to adapt to the shrinking customer base.

As air traffic to U.S. destinations from Toronto and Montreal also drops, it’s clear that New York’s border economy will face long-term consequences if these travel declines continue.

Michigan: Canadian Tourism Drops by 30%, U.S. Retailers Struggle to Stay Afloat

Michigan, with its close proximity to Ontario and Quebec, has long depended on Canadian travelers to fuel its retail economy, especially in cities like Detroit and Grand Rapids. But the dramatic 30% decrease in Canadian visits to Michigan in 2025 is shaking the state to its core.

According to reports, Detroit’s retail sector has taken a massive hit, as Canadian shoppers—who were once a critical source of income—have drastically reduced their travel south. CBP data shows that border crossings from Ontario into Michigan have dropped sharply, and local businesses have been forced to find new ways to attract customers. For Michigan, Canadian tourism represented a large portion of its cross-border commerce, and this sudden decline is crippling the local economy. Hotels, restaurants, and gas stations that once thrived on Canadian dollars are now struggling to maintain profitability.

Maine: A 20% Drop in Canadian Tourism Shakes Border Economy

Maine, a state heavily reliant on Canadian travelers, has seen a 20% drop in visits in 2025. The decline in border crossings and air travel from Quebec and New Brunswick has hit Maine’s economy hard, with tourism-dependent businesses in towns like Kittery and Portland feeling the effects. As CBP reports a decline in vehicle crossings from Canadian visitors, U.S. tourism businesses in Maine have struggled to stay afloat.

The local businesses that once thrived on Canadian tourism are now facing empty restaurants and stores. Maine’s tourism industry, which has always counted on a steady stream of Canadian shoppers and vacationers, is now seeing its bread-and-butter income source dry up. With rising travel costs and political tensions pushing Canadians away, Maine’s economy is struggling to recover.

Vermont: U.S. Retailers Feel the Heat as Canadian Visitors Decline by 28%

In Vermont, another state that thrives on Canadian tourism, the 28% drop in visits from Canadian residents has hit hard. Border crossings from Quebec into Vermont have significantly dropped in 2025, and air traffic from Montreal to Burlington has also seen a downturn.

US retailers are feeling the heat as fewer Canadians make their way into Vermont’s tourist spots. Shopping malls and outlet centers that once catered to Canadian tourists are now seeing empty parking lots, and local businesses are struggling to survive. As Canadian visits to Vermont decline, the local economy is being left in the dust, with business owners hoping for a reversal of the trend.

North Dakota: Border Decline Leads to Slumping Local Businesses

In North Dakota, Canadian travel has dropped dramatically, with vehicle crossings at Minot and Fargo plummeting. The economic downturn in North Dakota’s border towns is already evident, as local shops, restaurants, and hotels face steep declines in revenue.

According to industry reports, businesses in Grand Forks and Bismarck are losing thousands of dollars each day as fewer Canadians visit to shop, dine, and stay. This trend follows the national pattern of U.S.-Canada travel decline documented by U.S. Customs and Border Protection. For North Dakota, the loss of Canadian tourists means not just a drop in spending, but also a change in the economic fabric of these small towns.

Conclusion: A Major Crisis for the U.S. Border Economy

As Canadians from British Columbia, Ontario, Quebec, Alberta, and other provinces turn their backs on the U.S. tourism market, the American economy faces a crisis. The decline in cross-border travel has been a blow to businesses that once relied heavily on Canadian dollars to stay afloat.

From Washington State to Maine, New York, and Michigan, U.S. cities near the Canadian border are grappling with financial losses. The future of the U.S. tourism sector depends on whether these border towns can recover from the ongoing travel slump. The U.S. needs to rethink its relationship with Canada if it hopes to regain the tourism dollars being lost in 2025 and beyond.