What's Happening?
Canadian travel to the United States has significantly decreased, influenced by political and trade tensions between the two countries. According to RBC Economics, 29.1 million Canadian residents returned from the U.S. in 2025, marking a 25.4% decrease from 2024.
This trend continued into early 2026, with January travel down 23% year-over-year. Meanwhile, domestic tourism in Canada has strengthened, with a 10.9% increase in trips within Canada in the second quarter of 2025. Overseas travel by Canadians also rose, indicating a shift in travel preferences.
Why It's Important?
The decline in Canadian travel to the U.S. has significant implications for U.S. tourism, particularly in states that rely heavily on Canadian visitors, such as Florida and New York. The shift in travel patterns could affect hotel occupancy rates and tourism revenue in these areas. Additionally, the 'Elbows Up' movement, encouraging Canadians to spend domestically, highlights the impact of consumer sentiment on travel decisions. U.S. destinations may need to adjust their marketing strategies to attract Canadian tourists amid these changes.
