The once-steady stream of Canadian travelers crossing the border into the United States has noticeably slowed in recent months, prompting an aggressive campaign by U.S. tourism officials to recapture the attention of their northern neighbors. Despite targeted marketing efforts and special incentives, Canadian tourism to the U.S. has fallen by nearly 18% compared to pre-pandemic levels, according to data released last week by Statistics Canada.
“We’re seeing a fundamental shift in Canadian travel patterns,” explains Dr. Mira Patel, tourism economist at the University of Toronto. “The combination of economic pressures, changing travel preferences, and lingering pandemic concerns has created a perfect storm affecting cross-border tourism.”
The economic factors are particularly significant. With the Canadian dollar hovering around 72 cents USD through the first half of 2025, Canadians are finding their purchasing power significantly diminished south of the border. Hotel rates in major U.S. destinations have increased by an average of 22% since 2023, according to the latest Canadian Travel Index, creating a substantial cost barrier for potential visitors.
Beyond economics, there appears to be a cultural shift underway. A recent survey conducted by Travel Canada found that 64% of Canadian travelers are prioritizing domestic tourism in 2025, citing a desire to explore their own country and reduce their carbon footprint. This trend is particularly pronounced among millennials and Gen Z travelers, who report higher levels of climate consciousness affecting their travel decisions.
“Canadians are increasingly looking at the environmental impact of their vacation choices,” notes Jennifer Worthington, sustainability director at Canada Tourism. “Short-haul domestic travel simply aligns better with the values many younger Canadians are expressing.”
The U.S. tourism industry isn’t taking this decline sitting down. Brand USA, the nation’s destination marketing organization, launched its “Welcome Back” campaign in April, specifically targeting Canadian travelers with promises of unique cultural experiences and value-added packages. Major destinations including New York, Florida, and California have supplemented these efforts with their own marketing initiatives aimed at Canadian travelers.
However, preliminary data suggests these campaigns have yielded mixed results. While weekend visits to border cities have shown modest recovery, extended stays and long-haul domestic U.S. travel by Canadians remain significantly depressed compared to historical averages, according to Canada News analysis of border crossing statistics.
Security concerns may also be contributing to the reluctance. Extended wait times at border crossings and increasingly stringent security protocols have made spontaneous trips less appealing. The average border crossing time increased by 37 minutes in 2025 compared to 2023, according to the Canada Border Services Agency.
“The days when Canadians would casually cross the border for shopping or dining are increasingly behind us,” says border policy expert Michael Chen from the University of British Columbia. “The combination of economic, practical, and even political considerations has fundamentally altered the cross-border relationship.”
Political tensions between the two countries, while subtle, may also be influencing travel decisions. Polling data from the Institute for Canadian Opinion Research indicates that 41% of Canadians report U.S. politics as a factor in their travel planning, a significant increase from 28% in 2022.
Tourism experts suggest this trend could have lasting economic consequences for U.S. border communities that have traditionally relied on Canadian visitors. Communities from Bellingham, Washington to Burlington, Vermont are reporting decreased retail sales and restaurant patronage tied directly to the reduction in Canadian tourism.
As summer approaches—traditionally the peak season for cross-border travel—both countries’ tourism industries watch closely for signs of recovery. Will U.S. destinations find new ways to entice Canadian travelers, or are we witnessing a more permanent realignment of North American travel patterns? The answer may shape the economic futures of tourism-dependent communities on both sides of the world’s longest undefended border.
