Amid escalating political tensions and new border policies, cross-border travel between the US and Canada has experienced a significant decline, with tourism sectors in Washington DC and British Columbia bearing the brunt of the impact. This downturn can be attributed to factors such as stricter entry regulations, longer wait times at border crossings, and a growing sense of political discord between the two nations. As a result, US visitors to Canada have decreased, while Canadians are also less inclined to travel south, causing notable disruptions in tourism-dependent businesses, particularly in popular destinations like Washington DC and British Columbia. The ripple effect of these changes is reshaping the landscape of North American tourism, forcing both countries to reassess their travel dynamics.

Recent reports indicate a significant drop in cross-border travel between Canada and the US, largely attributed to growing political tensions and changing border policies. This downturn has had a profound impact on tourism-dependent businesses, especially those in British Columbia, which are feeling the effects of fewer international visitors.

Decline in Cross-Border Travel

Statistics Canada recently revealed an alarming trend in travel statistics. In April 2025, there was a 29.1% decline in Canadian residents returning from the US compared to the same month in the previous year. This marks the fourth consecutive month of year-over-year decreases. The most significant reductions were seen in automobile travel, which plummeted by 38.1%, while air travel dropped by 24.2%. These numbers indicate that cross-border travel has become less appealing for Canadians, who are now opting for alternative destinations.

On the other side, US residents visiting Canada also experienced a decrease. The number of US visitors to Canada dropped by 8.9% in April 2025 compared to the previous year. Factors contributing to this decline include stricter entry requirements, new visa regulations, and increased border wait times, all of which have made travel between the two countries more cumbersome.

Impact on Tourism Businesses

The FRS Clipper ferry service, which operates between Seattle and Victoria, B.C., has been particularly affected by the downturn in cross-border travel. The service, which typically caters to a large number of US tourists, has seen a 30% drop in Canadian passengers and a 12% decrease in US travelers. As a result, FRS Clipper has had to scale back its operations, reducing weekly sailings from 11 to 7 and laying off staff in Seattle. The company’s reliance on US travelers, who make up 80% of the ferry’s passengers, has made the decline in US tourism particularly impactful.

This decline in ridership has been a steady trend since early 2025, with lower passenger numbers than usual even before the peak summer season. For a company that had already weathered a 20-month shutdown due to the COVID-19 pandemic, the current situation is a new challenge that could strain its financial stability.

Buffalo, New York, has seen a noticeable decline in Canadian tourism, impacting the local economy. Patrick Kaler of Visit Buffalo Niagara revealed that border crossings dropped by 21% in May 2025, compared to the previous year. This decrease is most evident in popular border regions that typically attract a large influx of Canadian visitors, highlighting a significant shift in cross-border travel trends.

Shift in Travel Preferences

In response to the ongoing political and social tensions between Canada and the US, many Canadians are changing their travel habits. Air Canada, for example, reported a 4.6% drop in revenue and a 7% decline in passenger traffic on Canada-US routes during the first quarter of 2025. Bookings are expected to continue to fall as Canadians increasingly opt for domestic or international alternatives, such as Mexico or European destinations.

This shift in preferences is partly due to the growing sense of dissatisfaction with US policies and rhetoric, particularly after former President Donald Trump’s divisive political stance. Canadians have increasingly chosen to avoid US destinations, contributing to the US tourism industry’s projected loss of $9 billion in revenue by the end of 2025.

As the trend toward fewer Canadians visiting the US grows, US tourism hotspots, including major cities and resort areas, are bracing for further declines. The Canadian boycott, although not officially sanctioned, is a grassroots movement driven by political and social frustrations.

Canadian Tourism Response

Faced with the decline in US visitors, the Canadian tourism industry has begun to take proactive steps to boost US tourism. Various marketing campaigns have been launched, emphasizing the favorable exchange rate—currently, $1 USD equals $1.43 CAD—encouraging US travelers to visit Canada. These campaigns highlight the economic benefits of traveling to Canada, promoting it as an affordable and culturally rich alternative to US destinations.

In addition, Canadian tourism authorities have shifted their focus toward attracting visitors from countries outside North America, particularly from Europe, Asia, and Mexico, where growth in outbound travel is on the rise. While US travel to Canada may be down, other markets are beginning to pick up the slack.

Economic Consequences and Future Outlook

The ongoing decline in cross-border travel between Canada and the US is reshaping regional tourism dynamics. Businesses that depend on US travelers are facing challenges, especially those in British Columbia, where US tourists have historically represented a large segment of the market. While some businesses, like FRS Clipper, are adjusting by reducing operations, others may struggle to survive if the trend continues.

The broader US tourism industry is also feeling the strain. Tourist destinations that once relied heavily on Canadian visitors, such as Buffalo and popular US border cities, are seeing a decline in revenue and foot traffic. In response, local authorities are working to attract travelers from other regions to mitigate the losses.

Cross-border travel between the US and Canada has sharply declined due to escalating political tensions and new border policies, significantly affecting tourism in Washington DC and British Columbia. Stricter entry regulations and longer border wait times have made travel between the two nations more cumbersome, leading to a drop in visitor numbers.

As Canada and the US continue to navigate political and social tensions, the future of cross-border tourism remains uncertain. The effectiveness of Canada’s marketing efforts, along with any future changes in US border policies, will play crucial roles in determining whether tourism levels will return to pre-tension levels. For now, both nations are adjusting to the new reality of strained travel relations, and businesses in tourism-dependent sectors are left to adapt to these shifts in the market.

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