Published on February 26, 2026
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In the first month of 2026, Las Vegas, along with other major US cities like San Francisco, San Diego, Los Angeles, Miami, and Orlando, experienced a significant decline in Canadian tourist arrivals, marking a troubling start to the year for the US tourism sector. With Canadians punishing the industry, the drop in visitors has hit these iconic cities especially hard, each of which has long relied on Canadian tourists to bolster their hospitality and tourism revenues. The decline is a direct consequence of multiple factors, including ongoing trade tensions between the two countries, the rising cost of travel, and the strong US dollar that has made vacations in the United States increasingly expensive for foreign travelers.
Las Vegas, traditionally a top destination for Canadians seeking entertainment, gambling, and world-class resorts, saw a sharp drop in visitors, along with other cities that had once been staples on Canadian travelers’ itineraries. San Francisco, known for its iconic landmarks and vibrant culture, and San Diego, famous for its family-friendly attractions, were similarly affected by the downturn. Los Angeles, Miami, and Orlando, home to major events and theme parks, also felt the impact as Canadians shifted their focus to alternative, more affordable destinations. These cities are struggling to recover from the lost revenue, as Canadian tourism has long been a key driver for their tourism industries.
This decline, which has affected the US tourism sector significantly, demonstrates the deepening rift caused by the ongoing diplomatic and economic strains. Despite the efforts to revive tourism with events like the FIFA World Cup and ongoing national marketing campaigns, the Canadian boycott continues to serve as a formidable barrier to recovery.
In January 2026, Canadian tourism to the United States experienced a noticeable decline, with Canadian-resident return trips from the US falling by 24.3% compared to January 2025. This decline became more evident when compared to January 2024, before the onset of the trade conflict between Canada and the United States, showing a sharp drop of 28.2%. A major contributor to the overall decrease was the significant reduction in automobile travel, which saw a 26.8% drop, with 1.1 million return trips recorded. Meanwhile, air travel from Canada to the US experienced a smaller decline of 17.8%, with 493,388 return trips. On the other hand, Canadian-resident return trips from overseas by air saw a positive trend, with a notable 11.1% increase to 1.4 million in January 2026. This growth in overseas air travel highlights the shift in travel patterns, where Canadians appear to be opting for international destinations instead of cross-border trips to the US. Factors such as ongoing trade disputes, fluctuating exchange rates, travel costs, and weather disruptions likely played a role in the decreased travel volume to the US.
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Las Vegas, a popular destination for Canadian tourists, saw a significant drop in arrivals in January 2026, with a 29.8% decrease in Canadian-resident return trips. With 44,239 Canadians visiting the city, this represents a sharp decline from the previous year. Las Vegas has long been a hotspot for entertainment, gambling, and world-class resorts, attracting a large number of Canadians, particularly from cities like Vancouver and Calgary. However, the decline in Canadian arrivals can be attributed to several factors. Economic pressures, such as higher travel costs and fluctuating exchange rates, have made travel to the US less appealing for many Canadians. Furthermore, Las Vegas experienced some weather-related disruptions during the month, which likely deterred travel. Trade tensions between Canada and the US may have also contributed to a decline in cross-border trips. The rise of alternative international destinations and the changing nature of Canadian travel preferences may have shifted focus away from Las Vegas, as many Canadians are now opting for more affordable, direct flights to other global cities.
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San Francisco, known for its iconic landmarks like the Golden Gate Bridge and its vibrant cultural scene, witnessed a modest decline in Canadian tourism in January 2026, with a 4.6% decrease in return trips. A total of 40,651 Canadians traveled to the city in January, indicating that it remains a significant destination despite the small dip. San Francisco has long been a key destination for business and leisure travel between Canada and the United States, particularly for visitors from Vancouver, Toronto, and Montreal. However, several factors likely contributed to this decline. The rising costs of travel, including flight and accommodation expenses, have become barriers for many Canadian travelers. Additionally, changing preferences for international destinations, along with the ongoing trade dispute, may have made San Francisco less attractive compared to more affordable or easier-to-reach destinations abroad. Weather disruptions also played a role, as San Francisco experienced stormy conditions, which impacted travel plans. Despite these challenges, the city’s diverse offerings still attract Canadian tourists, but the decline signals that its appeal may be waning somewhat in favor of newer travel hotspots.
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San Diego, a well-known destination for its beautiful beaches and family-friendly attractions, saw a notable decline in Canadian tourism in January 2026, with Canadian-resident return trips dropping by 24.1%. A total of 7,273 Canadians visited San Diego during the month, reflecting a considerable decrease compared to previous years. San Diego has been a popular destination for Canadians, particularly for families seeking a mix of relaxation and adventure at places like SeaWorld and the San Diego Zoo. However, the decline in Canadian arrivals can be attributed to multiple factors. Economic challenges, including the rising cost of flights and accommodations, have made it less appealing for many Canadians. Additionally, the continued impact of trade tensions between Canada and the US likely influenced travel decisions, as some Canadians may have opted for alternative international vacations. The weather-related disruptions that affected much of the region in January further dampened tourism. Despite its family-friendly offerings, San Diego may need to reassess its marketing and pricing strategies to attract Canadian tourists in the future.
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Los Angeles, one of the most popular destinations for Canadians seeking entertainment, shopping, and cultural experiences, saw a 5.5% drop in Canadian-resident return trips in January 2026. With 49,804 Canadians traveling to Los Angeles, the decline was more modest compared to other US cities. The city has long been a favored destination for Canadians, especially those from the greater Vancouver area, who frequently travel to LA for vacations, business, and entertainment events like the Oscars. Despite the continued popularity of the city, a combination of economic factors has led to a slight decrease in arrivals. Rising airfares, exchange rate fluctuations, and the general cost of travel have deterred some Canadian tourists from visiting Los Angeles. Additionally, the ongoing trade conflict may have made some Canadians rethink cross-border travel. Weather disruptions, particularly the storms that hit California in January, may have also played a role in the decline. While Los Angeles remains a top destination, these factors indicate that Canadian tourists are increasingly exploring other options for travel, both domestically and internationally.
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Miami, renowned for its vibrant nightlife, beaches, and cultural experiences, saw a relatively mild decline in Canadian tourism in January 2026. With 35,407 Canadians traveling to the city, the drop was just 1.5% compared to the previous year. Miami has long been a top destination for Canadians, particularly during the colder winter months when many seek warmer climates. The city’s appeal to both leisure and business travelers from across Canada, particularly from Ontario and Quebec, remains strong. However, several factors likely contributed to this slight decrease. The overall rise in travel costs, including higher airfares and accommodation prices, may have deterred some Canadian tourists. Additionally, the ongoing trade tensions between Canada and the US, along with a decrease in disposable income for some Canadians, could have played a role. While weather-related disruptions had less of an impact in Miami compared to other parts of the US, the competitive nature of the global tourism market means that some Canadians may have chosen alternative destinations, leading to the slight drop in tourism.
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Orlando, the world-famous destination known for Walt Disney World and other major theme parks, experienced a substantial 23.9% decline in Canadian-resident return trips in January 2026. With 65,432 Canadians visiting the city, the drop was significant compared to previous years. Orlando has traditionally been a favorite for Canadian families, especially those from Ontario and Quebec, who often travel to the city for vacations and to visit Disney’s vast entertainment offerings. However, multiple factors appear to have contributed to the decrease in tourism. Rising costs associated with air travel and accommodation have made Orlando less accessible for many Canadian families. Furthermore, the ongoing trade tensions between Canada and the US may have led some Canadian families to reconsider their travel plans. Weather-related disruptions, including storm systems that affected much of Florida in January, likely had an additional negative impact on tourism. Additionally, the competitive nature of the tourism industry, with emerging destinations offering more affordable alternatives, may have made Orlando less attractive compared to other international family-friendly destinations.
The US travel industry, heavily reliant on international tourism, has been significantly impacted by the decline in Canadian visitors, with losses reaching billions of dollars. Despite efforts to recover, such as Brand USA’s expansive global campaigns and the FIFA World Cup 2026 acting as a potential tourism catalyst, the ongoing challenges—chiefly political tensions, fluctuating exchange rates, and rising travel expenses—continue to deter many Canadian tourists from crossing the border. These issues have compounded, especially as the strong US dollar makes vacations in the US pricier for foreign travelers. With Canada being one of the largest sources of international visitors, this downturn presents a serious threat to the US tourism sector, which has long benefited from consistent cross-border travel. The struggle to attract Canadian tourists reflects the broader issues facing the industry, and the full recovery of the sector may require substantial changes in both diplomatic relations and pricing strategies to make the US a more appealing destination once again.
In January 2026, Las Vegas, San Francisco, San Diego, Los Angeles, Miami, Orlando, and more cities struggled with declines in Canadian arrivals, as Canadians punished the US tourism sector due to trade tensions, high travel costs, and a strong dollar.
Las Vegas, along with cities like San Francisco, San Diego, Los Angeles, Miami, and Orlando, continues to struggle with declines in Canadian tourist arrivals in 2026. This downturn is a direct result of Canadians punishing the US tourism sector, driven by ongoing trade tensions, higher travel costs, and the strong US dollar. As these cities grapple with the economic impact, it’s clear that the strained relationship between Canada and the US, combined with rising expenses and alternative travel options, has significantly shifted Canadian travel preferences. Despite the efforts to boost tourism through high-profile events and marketing campaigns, the US tourism sector faces a challenging road to recovery as Canadian travelers look elsewhere for more affordable, accessible destinations.
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Tags: canadian tourism, FIFA WC 2026, Travel Challenges, US tourism decline

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