Canadian Visitors To U.S. Falls For Sixth Straight Month

Key Concepts:

• Decline in Canadian tourism to the US
• Decrease in US tourism to Canada
• Impact on international tourism revenue
• Statistics Canada data
• US National Travel and Tourism Office projections
• Tourism Economics forecast
• Year-over-year drops in travel
• Economic loss due to tourism decline

Decline in Canadian Tourism to the US

New data from Statistics Canada reveals a significant decrease in Canadian tourism to the US. In July, there was a 33% drop in Canadians visiting the US by car compared to June of 2024. This follows a 38% drop in May, indicating a consistent downward trend. Road trips are the primary mode of transportation for Canadians visiting the US, making this decline particularly impactful. Air travel from Canada to the US also experienced a 22% decline year-over-year. June marked the sixth consecutive month of steep declines in inbound Canadian travel, with double-digit year-over-year drops in both car and air travel since April.

Decrease in US Tourism to Canada

Travel in the opposite direction is also experiencing a downturn. Fewer Americans are traveling to Canada, with car travel down 10% in July compared to the previous year. This is a slight increase from the 8% drop observed in May, according to Statistics Canada data.

Economic Impact and Projections

The decline in international tourism is expected to have a substantial economic impact. The US National Travel and Tourism Office projects a 9% fall in international arrivals in the US in 2025. This is anticipated to result in an estimated $8.5 billion decrease in international visitor spending compared to the previous year.

Tourism Economics Forecast

Tourism Economics, a nonpartisan Oxford economics company, provides a detailed forecast of the situation. Adam Saxs, president of Tourism Economics, emphasizes that the financial impact is more severe than initial figures suggest. Previously, 2025 was projected to bring a $16.3 billion increase in international tourism revenue. However, the US now faces potential losses of up to $12.5 billion, resulting in a total potential loss of $29 billion.

Canadian Tourism Spending

Last year, Canadian tourists comprised approximately one-quarter of all foreign travelers to the US, spending $20.5 billion. This figure is nearly double what Americans spent at McDonald's, highlighting the significant contribution of Canadian tourism to the US economy.

Conclusion

The decline in both Canadian and American tourism is poised to have a significant negative impact on the US economy. Projections indicate substantial losses in international visitor spending, with Tourism Economics forecasting a potential $29 billion loss. The data from Statistics Canada and the US National Travel and Tourism Office underscore the severity of the situation and the need for strategies to revitalize international tourism.