Decline in U.S. Tourism: The Impact of Canadian Boycotts and Broader Trends

In 2025, the United States is projected to experience a significant decline in international visitor spending, with estimates suggesting a loss of $12.5 billion compared to the previous year. This downturn is particularly pronounced in the tourism sector, where the U.S. is the only country among 184 tracked economies expected to see a decrease in visitor spending. Factors contributing to this decline include geopolitical tensions, particularly with Canada, and a general shift in travel preferences among Canadians.

The decline in Canadian tourists is notably impacting New England states such as Vermont, New Hampshire, and Maine, which traditionally rely on cross-border visitors. Patrick Twomey, founder of 2Me Travel, has publicly declared a boycott of U.S. travel, citing discomfort with U.S. policies that he believes attack Canada and other nations. His sentiments reflect a broader trend among Canadians who are reconsidering travel to the U.S. due to political and ethical concerns, particularly regarding immigration policies.

Christian Science Monitor

Catherine Maule, a Toronto resident, echoed similar feelings in an op-ed, stating that her decision to forgo her annual trip to Maine was rooted in moral considerations rather than personal fear. This sentiment is shared by many Canadians, leading to a reported 32% drop in Canadian vehicle entries into New England states in July 2025, amounting to approximately 105,000 fewer vehicles compared to the previous year.

Christian Science Monitor

In response to the decline in Canadian tourism, local businesses and tourism boards in New England have implemented various strategies to attract visitors. For instance, Burlington, Vermont, temporarily renamed a street to "Canada Street" as a gesture of goodwill. Additionally, the Vermont tourism department has partnered with local businesses to offer discounts to Canadian visitors. Despite these efforts, many local businesses report a noticeable decrease in visitor numbers, particularly in areas reliant on Canadian tourism.

Christian Science Monitor

Maine's Governor Janet Mills expressed concerns about the potential loss of 225,000 Canadian tourists, emphasizing the economic impact on local businesses that depend on cross-border visitors. While domestic tourism has seen some growth, it has not fully compensated for the absence of Canadian travelers.

The decline in Canadian visitors is part of a larger trend affecting U.S. tourism. Domestic travel has increased, with Americans spending more on local trips, but international arrivals have decreased significantly. The World Travel & Tourism Council has indicated that U.S. tourism is facing challenges due to lengthy visa processes, economic uncertainties, and a perception of unwelcoming attitudes towards foreign visitors.

Tourism expert Chekitan Dev highlighted that the U.S. hospitality industry is at a critical juncture, warning that ongoing economic uncertainty could lead to the closure of many small and medium-sized businesses. The projected decline in international tourism could exacerbate existing labor shortages and economic pressures within the sector.

Newsweek

As New England prepares for the fall leaf-peeping season and winter skiing, hopes for a resurgence in Canadian tourism remain low. The ongoing political tensions and the resulting boycott may have lasting implications for the U.S. tourism industry. With international visitor spending projected to decline further, stakeholders in the tourism sector must adapt to these changing dynamics to mitigate the economic impact and restore the appeal of the United States as a travel destination.