≡-US Faces Devastating Nearly Thirty Billion USD Tourism Meltdown as Canadian Travelers Vanish Amid Explosive Border Tensions and Nationwide Boycott – Viral of Today

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Home » America Travel News » US Faces Devastating Nearly Thirty Billion USD Tourism Meltdown as Canadian Travelers Vanish Amid Explosive Border Tensions and Nationwide Boycott Friday, July 11, 2025The US is facing a crippling collapse in tourism revenue nearing thirty billion dollars, driven by a sharp and accelerating drop in visits from Canadian travelers—its most significant international tourism source. Spurred by rising border tensions, heated political language, and a nationwide appeal in Canada for people to boycott American holidays, auto and air visits by Canadians to the United States have crashed for six months running. Since Canadian tourists historically provide one-quarter of all foreign expenditure on tourism in the United States, this collective retreat is driving a larger global tourism downturn threatening to derail economic rebound and obliterate regional economies dependent on cross-border traffic.Canadian travel to the US has plummeted at an alarming pace, contributing to a massive projected decline in overall U.S. international tourism revenue. With car crossings down by over 30% and air travel falling by more than 20% year-over-year, experts warn that the economic cost could spiral toward $29 billion in 2025. Political tensions, policy shifts, and border incidents are altering travel behavior on both sides of the border—and the ripple effect is shaking the North American tourism ecosystem.Canadian Border Crossings See Dramatic DeclineIn June, the number of Canadian travelers entering the United States by automobile dropped by 33% compared to the same month in 2024. The drop follows a 38% year-over-year decline in May, according to new data released by Statistics Canada. The sustained double-digit decreases have now persisted for six consecutive months, signaling more than a seasonal dip—it’s a structural downturn that shows no signs of recovery.Most Canadians travel to the U.S. by car, especially for short trips to border-adjacent states like New York, Michigan, and Washington. These road trips have traditionally fueled tourism-dependent local economies on both sides of the border. However, that traffic has dried up considerably as political disputes and national sentiments harden.June also marked a 22% drop in Canadian air travelers heading to the U.S. compared to the previous year. Since April, each month has recorded double-digit decreases in both land and air travel, reinforcing a clear trend of avoidance among Canadian travelers.Canadians Once a Pillar of U.S. Tourism RevenueCanadian visitors accounted for approximately one-quarter of all international arrivals to the U.S. in 2024. Their collective spending totaled $20.5 billion that year—surpassing even the national revenue of major fast-food chains over the same period. These figures underscore how integral Canadian tourism has been to U.S. economic vitality, especially in regions near the border.The projected downturn could wipe out approximately $2.1 billion in tourism-related revenue and place at risk up to 140,000 jobs across hospitality, travel services, and supporting industries, according to industry estimates. Now, with recent statistics indicating a much steeper decline, the damage is anticipated to be significantly more severe.Forecasts for 2025 suggest a potential $29 billion loss in total international tourism revenue—more than double previous estimates. Canadian travelers, who historically take frequent leisure, business, and cross-border shopping trips to the U.S., are now noticeably absent.A Political Rift Fueling Tourism RetaliationThis stark shift in travel behavior is not merely economic—it is political. In February, U.S. leadership triggered controversy by introducing new tariff proposals and referring to Canada in dismissive terms, sparking outrage among Canadian policymakers and the public.In response, Canada’s then-leader called on citizens to refrain from vacationing in the United States. That plea turned into a nationwide movement, gaining momentum throughout the spring. Travel forums, news segments, and social media platforms were flooded with calls to “spend Canadian dollars at home” or to explore alternative international destinations.A mid-May survey conducted by Leger Marketing, involving more than 1,500 Canadian adults, revealed that three out of four Canadians reconsidered or canceled U.S. travel plans due to the tariff announcement. Over half of the respondents opted for destinations other than the U.S., redirecting their travel budgets to Europe, Asia, and within Canada.Adding fuel to the fire were reports of more than 50 Canadian travelers allegedly detained or aggressively questioned at the U.S. border. These incidents made national headlines in Canada and further eroded public confidence in cross-border travel safety. The situation prompted calls for official travel advisories, citing risks at the border and accusations of civil rights infringements.Decline in U.S. Visitors to Canada Compounds ImpactThe tourism disruption is not unilateral. American travelers heading to Canada have also declined. According to Statistics Canada, the number of U.S. citizens entering Canada by car in June dropped by 10% year-over-year. This came on the heels of a reported eight percent drop in cross-border travel during the month of May. While less dramatic than the Canadian drop-off, it reflects a growing reluctance to cross the border from either side.These mutual reductions have severely impacted local businesses in key border regions such as Niagara Falls, Windsor, Vancouver, and Montreal. Hotels, restaurants, and tourist attractions that once thrived on weekend cross-border visitors are now struggling with lower occupancy rates and falling revenue.Global Tourism Decline Amplifies the DamageWhile Canada’s retreat from U.S. travel is drawing headlines, it is part of a broader downturn in international visitation to the United States. Data from Tourism Economics, an independent research division of Oxford Economics, indicates that inbound international travel to the United States is experiencing a significant downturn. are expected to decline by 9% in 2025, with spending by foreign tourists falling by $8.5 billion, or 4.7%, compared to 2024.However, the real concern lies in what might have been. Experts had anticipated a significant rebound year for international tourism in 2025, following global recovery trends and easing visa bottlenecks. The U.S. was projected to gain an additional $16.3 billion in tourism revenue, which now not only looks unattainable but has flipped into a potential $12.5 billion loss—turning the positive outlook into a $29 billion catastrophe.Tourism Economics’ president described the forecasted losses as “catastrophic,” emphasizing the opportunity cost of missed growth. International tourists, especially from high-spending markets like Canada, China, Germany, and the United Kingdom, are critical for sustaining and expanding the U.S. travel economy. Their absence translates directly into empty hotel rooms, unbooked tours, and underutilized transportation services.Canadian Substitutes for U.S. TravelAs Canadian travelers steer clear of the U.S., domestic tourism within Canada has surged. Popular destinations such as Banff, Quebec City, Halifax, and Prince Edward Island have reported increases in bookings, particularly among Canadians who might have otherwise traveled south.In addition, destinations in Europe and Asia have seen more Canadian tourists redirect their plans. Countries with favorable currency exchange rates, low entry barriers, and attractive marketing campaigns—such as Portugal, Mexico, and Thailand—are benefiting from this shift.This redirection of Canadian spending further widens the gap in the U.S. tourism economy. It’s not just about the lost traveler—it’s about the redirection of billions of dollars to competing destinations around the globe.Implications for Border Communities and U.S. Tourism PolicyThe enduring cross-border travel connection between Canada and the United States has historically served as a vital pillar of North American tourism. has been one of the most robust cross-border tourism exchanges in the world. Its unraveling threatens not only national economic indicators but the viability of thousands of small and medium-sized businesses that rely on this steady influx.Tourist-dependent U.S. cities near the Canadian border are now pushing for policy shifts to win back lost visitors. From increased marketing outreach to diplomatic repair efforts, regional tourism boards are calling for renewed bilateral cooperation.Furthermore, industry advocates are urging the U.S. federal government to depoliticize travel and adopt a more visitor-friendly stance. Simplifying visa procedures, improving border protocols, and engaging in trust-building campaigns are among the recommendations being floated by U.S. tourism think tanks and economic policy groups.A Cross-Border Freeze with Global RamificationsThe decline in Canadian travel to the United States is a clear sign of deeper fractures in North American tourism relations. With steep year-over-year reductions in both car and air travel, and the loss of billions in visitor spending, the U.S. tourism sector is bracing for what could be its most challenging year in recent history.Unless urgent measures are taken to rebuild confidence, repair political divides, and re-establish trust among travelers, the United States may find itself losing ground not just with Canada, but with international travelers worldwide.The US is in the grip of a calamitous tourism meltdown approaching thirty billion USD as Canadian tourists vanish in record numbers, spurred by explosive border tensions and unified national boycott in the wake of political row and security concerns. The steep dip in transborder movement has adversely affected international spending by tourists and has the potential to cause major losses in the American tourism industry.The $29 billion in forecasted economic damage is more than a statistic—it’s a wake-up call for policymakers, tourism leaders, and businesses alike. The message from Canadian travelers is loud and clear: where they go, how they feel, and what they spend cannot be taken for granted.

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