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Cross-border travel from Canada into the United States plunged sharply in late 2025, with return trips down roughly 24 per cent in November compared with a year earlier, continuing a downward trend in land-border crossings that has broader economic implications for U.S. tourism and local businesses.
According to travel experts cited by Global News, the sustained drop in Canadian visits is expected to result in significant losses for the U.S. economy. The World Travel and Tourism Council has projected that the United States could see about $12.5 billion less in international visitor spending in 2025, a rare decline among major tourism markets globally.
Industry analysts say several factors have contributed to the downturn in Canadian travel, including elevated travel costs, shifts in leisure preferences and broader political and economic tensions that have dampened enthusiasm for U.S. trips. Some Canadian travellers have opted for domestic destinations or alternate international markets instead, a trend that has been noticeable in border communities that traditionally rely on U.S. tourism.
The drop has tangible effects on U.S. border cities and states that depend on Canadian visitors for retail, hospitality and entertainment revenue, particularly during peak travel seasons. Businesses in areas like southern Ontario and northern U.S. states have reported fewer Canadian customers, leading to reduced sales and concerns about staffing and profitability.
In response, some U.S. tourism operators have launched initiatives to attract Canadians back, including special exchange rates and promotions aimed at making travel more affordable. However, it remains uncertain whether these efforts will offset the broader decline in cross-border tourism.
Experts warn that unless the trend reverses, the prolonged reduction in Canadian travel could have lasting repercussions for the tourism sector and local economies on both sides of the border, highlighting how closely tied the two nations’ travel-related industries have become.