Published on November 19, 2025
By: Tuhin Sarkar
The U.S. tourism sector is facing a devastating blow as American cities like Las Vegas, New York City, Los Angeles, Florida, and Palm Springs all experience a consecutive Canada tourism decline in 2025. This significant reduction in Canadian visitors is leaving these once-popular American destinations in sheer dust, with over two billion USD in lost visitor spending and more than fourteen thousand job losses. The impact is immense, and US cities are struggling to cope with the sharp drop in tourism from their northern neighbours. Find out how this crisis is shaking up the American travel sector and the major cities affected.

Las Vegas: The Entertainment Capital of the U.S. Faces Major Setbacks

Las Vegas, renowned for its bright lights, casinos, and world-class entertainment, has long been a favourite destination for Canadian tourists. However, in 2025, the city has seen a sharp drop in Canadian visitors. According to AP News, Canadian tourism to Nevada has decreased by 20% as of mid‑2025, a figure that is causing serious concern for the city’s tourism industry. Canadian travellers, who are a significant portion of the international visitors to Las Vegas, have been avoiding the city in record numbers.

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Why is this happening? The main reasons include political tensions, rising costs in the U.S., and a weakening Canadian dollar. As Las Vegas relies heavily on international tourists, especially Canadians, this decline in visits is putting immense pressure on hotels, casinos, and restaurants. Many businesses in Las Vegas have seen empty hotel rooms and lower casino revenues, leading to fears that this downturn could last long term unless new measures are implemented.
Las Vegas is home to some of the most iconic resorts and entertainment venues in the world, making it a global attraction. However, the Canadian market—which has traditionally provided a steady flow of tourists—appears to have cooled significantly. With fewer Canadian visitors arriving for weekend trips and long stays, the city faces a major economic crisis. To combat this, Las Vegas needs to diversify its tourist base, targeting other international markets like Europe, Asia, and South America.

New York City: A Global Hub Struggles with Declining Canadian Visitors

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New York City, one of the world’s most visited cities, is experiencing a significant decline in Canadian tourists. The New York Post reported that Canadian visits make up a substantial portion of New York’s international tourism revenue. With Canadian tourist arrivals dropping by over 24% in 2025, New York is now facing the challenge of losing around 800,000 international visitors in total, more than half of whom are from Canada.
The reasons for the decline are multifaceted. Political tensions, the Trump administration’s policies, and stricter immigration controls have all contributed to a growing sense of unease among Canadian travellers. Moreover, the Canadian dollar’s weakness against the U.S. dollar has made trips to New York more expensive for Canadians. As one of the most expensive cities in the U.S., New York depends on its international visitor base, especially Canadians who regularly visit for shopping, theatre, and iconic landmarks.

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The tourism economy in New York City is now struggling with reduced hotel bookings, lower foot traffic in Broadway theatres, and fewer tourists visiting museums and attractions. With Canadian visitors staying away, New York City’s hospitality and cultural sectors are feeling the pinch. Hotels, restaurants, and tourist attractions that once thrived on Canadian tourism now face the challenge of filling gaps left by the decreased Canadian influx. To recover, New York must work to attract other international visitors while restoring ties with the Canadian market.

Los Angeles: Hollywood Struggles with a Canadian Exodus

Los Angeles, a city that thrives on international visitors—especially from Canada—is also feeling the effects of the Canadian pullback. In 2025, Hollywood saw a 38% drop in Canadian visitors, a significant decrease that’s impacting tourism revenue in the region. The city, known for its entertainment industry, iconic landmarks like the Hollywood Walk of Fame, and beaches, has long been a favourite destination for Canadians. However, in 2025, this once-reliable stream of visitors has slowed to a trickle.
The reasons are clear. U.S. political policies, including the treatment of Canadian travellers at the border, have caused growing frustration among Canadian tourists. A weak Canadian dollar also makes it more difficult for Canadians to justify expensive trips to the U.S. Given that California is a top U.S. destination for Canadian travellers, the decline in Canadian visits is hitting Los Angeles especially hard.
With fewer Canadians booking flights to Los Angeles or driving across the border, the city’s tourism economy is suffering. Hotel bookings are down, tourist attractions like the Universal Studios Hollywood theme park are seeing fewer visitors, and even restaurants and shopping districts that were once packed with Canadian shoppers are feeling the loss. Los Angeles needs to revamp its marketing strategies to attract other international tourists and rebuild Canadian confidence by making the city more welcoming to travellers from north of the border.

Florida: The Sunshine State Faces Canadian Shortage

Florida, a state known for its beaches, theme parks, and vibrant culture, is also taking a hit from the decline in Canadian tourism. Cities like Miami, Orlando, and the Florida Keys have long relied on Canadian snowbirds—Canadians who flock to Florida during the winter months to escape the harsh northern weather. However, in 2025, Florida is seeing a drop in Canadian visitors, which is significantly affecting the state’s hospitality and tourism industry.
Many Canadians who would have traditionally spent the winter in Florida are opting for alternative destinations like Mexico or the Caribbean. The ongoing political tensions, the cost of travel, and the general economic downturn have led many Canadians to reconsider their U.S. vacations. The weakened Canadian dollar has made travel to Florida even more expensive, forcing many to reconsider whether it’s worth the cost.
Hotels, airlines, and tour operators in Florida are all feeling the effects of the reduced Canadian market. With fewer Canadians booking trips to the state, hotel occupancy rates are down, and many local businesses are struggling to make up for the loss. To mitigate the effects of the downturn, Florida’s tourism industry must find new ways to attract visitors from other regions and work on appealing to the Canadian market again.

Palm Springs: California’s Desert Retreat Faces Crisis from Canadian Exodus

Palm Springs, known for its luxury resorts, golf courses, and as a favourite destination for Canadian snowbirds, has been hit particularly hard by the decline in Canadian tourism. According to local news reports, the city is struggling with a sharp decrease in visitors from Canada in 2025. The combination of political factors, the weak Canadian dollar, and the general cost of travel has caused many Canadians to reconsider their winter visits to California.
Once a popular destination for Canadians escaping the cold, Palm Springs is now facing empty hotel rooms, closed shops, and quiet streets. The city’s economy, which depends on the influx of Canadian visitors during the colder months, is feeling the loss deeply. Local businesses, especially those in hospitality and retail, are struggling to adapt to the reduced number of Canadian tourists.
To recover, Palm Springs must look beyond its traditional Canadian market. With the ongoing political and economic uncertainties surrounding travel to the U.S., Palm Springs will need to diversify its tourism offerings and appeal to a wider range of international visitors.
The decline in Canadian tourism to the U.S. is having far-reaching consequences for many cities that once relied heavily on Canadian visitors. From Las Vegas to New York City, Los Angeles, and Florida, the tourism industry is facing a crisis as Canadians abandon U.S. destinations in record numbers. The reasons behind this shift are multifaceted, including political tensions, the weak Canadian dollar, and rising costs associated with travel to the U.S.
Cities that once thrived on Canadian tourism must now find ways to adapt and diversify their visitor base. With billions of dollars at stake, U.S. tourism leaders must rebuild trust with Canadian travellers, while also focusing on attracting new international markets. If they fail to act, the U.S. tourism economy could face a prolonged downturn, with lasting effects on cities that rely heavily on international visitors.

Canada Ditches U.S. Travel: What This Means for U.S. Cities and Billions in Lost Tourism

In a shocking turn of events, Canada has drastically cut back on trips to the United States, dealing a major blow to the U.S. tourism economy. Canadian travellers, once the U.S.’s most reliable visitors, have started to ditch American destinations in droves. This shift is sending waves through U.S. tourism markets, especially in cities like Los Angeles, New York, and Florida, that heavily rely on the influx of Canadian tourists each year. While Canada has long been the top international source of visitors to the U.S., recent statistics show a drastic decline in Canadian travel to American cities.
The ripple effects are significant, with lost revenues estimated in the billions. Tourism-dependent industries, such as hotels, airlines, and entertainment venues, are feeling the pain as U.S. cities grapple with the devastating consequences. But why are Canadians abandoning the U.S.? The reasons are complex, involving political tensions, economic factors, and growing frustrations with U.S. policies. In this report, we break down the causes, the consequences, and the cities most affected by this trend.

Why Are Canadians Ditching U.S. Travel? The Shocking Truth Behind the Decline

Canada’s shift away from U.S. travel isn’t a random event—it’s a carefully calculated response to several years of tension between the two countries. According to a report from The Guardian, Canadian travel to the U.S. has dropped for seven consecutive months as of mid‑2025, with a significant downturn in both land crossings and air travel. The decline can be traced back to rising political tensions, particularly over issues like immigration policies, tariffs, and the general rhetoric coming out of the U.S. government. Canadians, many of whom have long been loyal visitors to the U.S., now feel increasingly unwelcome.
Political factors are a big driver. As U.S. immigration policies tighten and border controls become more aggressive, Canadians are rethinking their trips. The Trump administration’s rhetoric, including threats to impose tariffs and restrictive travel bans, has left a sour taste among Canadian travellers. The Washington Post even highlighted that many Canadians are choosing to stay home or explore alternative international destinations, citing fears of being treated unfairly at the border.
Moreover, the economic landscape has shifted. The Canadian dollar has weakened against the U.S. dollar, making cross-border trips significantly more expensive for Canadian travellers. Combined with rising costs in the U.S. and economic uncertainty, Canadians are opting for more affordable and less complicated destinations, like Mexico and the Caribbean, over the U.S.

The Numbers Don’t Lie: The Dramatic Impact on U.S. Tourism

The decline in Canadian travel has already caused significant damage to the U.S. tourism economy. Canada has long been the U.S.’s top international visitor market, sending millions of travellers every year. In 2024, 20.4 million Canadians visited the United States, contributing a staggering US$20.5 billion in tourism revenue. However, as Skift reports, the 2025 figures show a 24% decline in Canadian visits compared to the previous year, and experts are predicting that if this trend continues, the U.S. could lose billions of dollars in tourism revenue. The U.S. Travel Association estimates that every 10% drop in Canadian visitation could result in a loss of US$2.1 billion in spending and 14,000 jobs lost.
The hardest-hit sectors include hospitality, transportation, and entertainment. Hotels in cities like New York, San Francisco, and Miami are facing reduced bookings as Canadian visitors—who are vital to the local economies—stay away. Airlines, especially those operating cross-border flights between Canada and the U.S., are also feeling the pinch, with seat occupancy rates plunging due to the drop in Canadian travellers. This loss of revenue is creating a domino effect, impacting not only hotel owners and restaurant operators but also businesses that rely on international visitors, like tourist attractions and local shops.

Which U.S. Cities Are Feeling the Pain? The Worst-affected Areas

While the decline in Canadian tourism is widespread, certain U.S. cities are suffering more than others. Cities that traditionally rely on Canadian visitors for a large portion of their tourism economy are the hardest hit.

Florida: The Sunshine State Struggles to Keep Canadian Visitors Coming

Florida is one of the states feeling the biggest impact from the decline in Canadian travel. Florida’s tourism industry, which has long been bolstered by Canadian snowbirds and visitors, is facing a serious downturn. According to multiple reports, Canadian visitors make up a significant portion of the state’s winter tourism market. With the decline in Canadian visitors, areas like Miami, Orlando, and the Florida Keys are seeing empty hotel rooms and fewer tourists during the peak travel season. This is a significant loss for the local economy, which relies heavily on tourists from Canada for year-round business.

California: Lost Revenue and Uncertainty in the Golden State

California is also feeling the impact of reduced Canadian travel. The state is a top destination for Canadians, especially in places like Los Angeles, San Diego, and Palm Springs. California is home to Hollywood, theme parks, and world-class resorts, all of which have historically drawn large numbers of Canadian visitors. As Canadians stay away, hotel bookings are down, airlines are reporting fewer Canadian passengers, and theme parks like Disneyland are feeling the pressure.

New York and the Northeast: The Financial Hub Faces Canadian Exodus

New York City and the surrounding areas are also grappling with a sharp decline in Canadian tourism. As a global financial hub and cultural capital, New York traditionally attracts thousands of Canadian visitors each year. However, the drop in Canadian air travel and land crossings has left many of the city’s hotels, restaurants, and tourist attractions scrambling for new customers. As one of the most expensive cities in the U.S., New York relies heavily on international visitors to fill its luxury accommodations and upscale businesses.

Nevada and Las Vegas: The Canadian Impact on the Entertainment Capital

Las Vegas, known for its casinos and nightlife, is another city that is feeling the heat. Canadians have long made up a significant portion of the city’s tourist population. With the current drop in visits, hotel occupancy rates and casino revenues are suffering. Las Vegas is used to attracting tourists from all over the world, but the Canadian market has been a crucial part of its year-round visitor base. With fewer Canadians travelling, the city is having to find new ways to fill its iconic hotels and casinos.

What Does This Mean for U.S. Tourism Moving Forward?

The U.S. tourism industry is undergoing a major crisis, and the Canadian exodus is a big part of the problem. While many states are working hard to attract tourists from other countries, the loss of Canadian visitors could result in a long-term economic impact that will be felt for years to come. Cities like Florida, California, New York, and Las Vegas need to diversify their markets and find new ways to attract international tourists, especially as Canadian travel continues to decline.
The U.S. tourism industry must also adjust to changing travel trends. As Canadians turn their backs on the U.S., they are increasingly looking toward other destinations, such as Mexico, the Caribbean, and Europe, where they can experience a similar level of luxury and excitement without the added stress of navigating stricter U.S. immigration policies. For American tourism operators, the challenge will be finding ways to attract these potential travellers while still maintaining the allure of the U.S. as a top global destination.

Is the U.S. Losing Canada for Good?

The decline in Canadian travel to the U.S. is one of the most significant blows to the tourism economy in recent memory. The lost revenue from Canadian visitors will be a challenge for many U.S. cities that rely on international tourism. While there are efforts to diversify and capture tourists from other parts of the world, the reality is that the Canadian market will be hard to replace. With political tensions, economic challenges, and changing travel preferences, the U.S. faces a difficult road ahead as it attempts to recover from this massive tourism downturn.
The question remains: will Canada and the U.S. find a way to repair their relationship, or will the Canadian exodus continue to haunt the U.S. tourism economy for years to come? The future of U.S. tourism is uncertain, but one thing is clear—the loss of Canadian visitors has already taken its toll.

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Tags: Canada tourism decline, florida tourism, Las Vegas tourism, New York City tourism, U.S. job losses

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