It was supposed to be a record-breaking tourism season across the United States. But as temperatures climbed in July 2025, visitor numbers plummeted—particularly from Canada. Once-reliable U.S. destinations like Florida, California, Maine, Texas, and Nevada now tally up sharp drops in Canadian tourism, and New York has finally joined the downturn.
New York: The Final Piece Falls
New York became the most recent state to fall into a tourism slump. As of June 2025, border crossings from Canada into New York dropped 17% year-over-year, sending shockwaves through businesses in Upstate New York’s border towns like Deer River and Plattsburgh. Deer River Campsite owner Gil Paddock, in his 43rd season, says this year’s revenue is drastically down, with repeat domestic guests now filling gaps left by missing Canadian vacationers. Meanwhile, Lake Placid restaurants and hotels report revenues down as much as 30%.
This plunge reflects what tourism officials in major U.S. destinations have endured since early 2025:
Florida’s resorts relied heavily on Canadians for summer bookings. In June, Canadian flight bookings fell nearly 70%. Miami, Orlando, Tampa—all seeing steep occupancy drops.
California’s premier cities, including Los Angeles and San Francisco, saw Canadian air arrivals down more than 15%, eroding revenue for beachfront hotels, tours, and entertainment venues.
Maine’s coastal towns like Old Orchard Beach, traditionally buoyed by Canadian tourists, experienced visitation drops of 27.5%, with local businesses suffering through lower sales and staffing cuts.
Texas, popular with Canadian snowbirds and medical travelers, has seen arrivals fall by 28–30%, impacting cities such as Austin and San Antonio.
Nevada—Las Vegas in particular— registered a 6.5% drop in Canadian spending, hitting casinos and resorts reliant on weekend travelers.
What’s Driving the Collapse?
1. Canadian Boycott & Political Backlash
Canadian tourism is abandoning the U.S. in unprecedented numbers. Since February 2025, vehicle crossings have tumbled over 23–40%, and flight bookings cratered by up to 76% in March. Surveys show many Canadians—upwards of 62%—actively planning to avoid U.S. travel amid trade war rhetoric and political tensions.
Prime Minister Justin Trudeau and other leaders encouraged a “Buy Canadian” movement, and discouraged travel south of the border due to perceived disrespect for Canadian sovereignty.
2. Border Anxiety & Safety Concerns
Stories of detentions, prolonged screenings, and arrest at U.S. ports of entry have discouraged potential visitors. Many Canadians report anxiety about visa denials or perceived hostility—prompting them to choose safer or familiar destinations.
3. Exchange Rate & Economic Pressures
Canada’s weaker dollar combined with rising travel costs—including tariffs on goods and services—make U.S. vacations financially burdensome. This economic friction adds to reluctance about border crossing.
4. Wider Global Travel Decline
International tourism to the U.S. is down across the board. Inbound arrivals from Europe fell between 17–28% in March, and by 7% from Australia, with travelers citing U.S. policies as a major deterrent. Overall, inbound tourism spending is forecast to drop between $8–12.5 billion in 2025 compared to 2024.
Tourism economists have revised forecasts: what was initially expected to be growth in 2025 is now projected to be a 9–12% decline.
The Economic Fallout
Job Losses & Business Shutdowns
Cities and towns across these six states face serious consequences. In New York City alone, two million fewer foreign tourists are expected—translating into a 14–17% drop in visitor numbers and an estimated $4 billion in lost spending. Although international tourists represent just 20% of total visitors, they generate 50% of tourism revenue.
The World Travel & Tourism Council projects a $12.5 billion decline nationally in inbound tourism — a 7% drop from 2024, and threatening hundreds of thousands of jobs in hospitality, food service, attractions, retail, and transport.
Local tour guides in NYC report that group sizes have shrunk—some tours that used to host 20 people now field 5. The result may be layoffs or shuttered businesses in the industry.
Broader Economic Risks
The U.S. may experience a widening tourism trade deficit as Americans continue to travel abroad, while fewer foreigners visit the U.S. States dependent on seasonal Canadian tourism—like Maine or Nevada—face acute local losses, not to mention long-term reputational harm.
State Responses & Recovery Efforts
Rebranding and Outreach
Several states have launched campaigns to counter the sentiment.
NYC Tourism + Conventions rolled out the “With Love + Liberty, New York City” campaign to reassure international visitors.
Visit California attempted to highlight cultural ties—like the Canadian roots of the California roll—but critics say the messaging hasn’t yet resonated.
Buffalo, NY, started a “Buffalo Loves Canada” push, emphasizing hospitality and offering incentives such as gift-card raffles.
Federal & Policy Coordination
The U.S. Travel Association is working with Customs and Border Protection to roll out clearer travel guidance. Industry leaders are calling for easing tensions through trade diplomacy to rebuild Canadian confidence.
What Comes Next?
Medium-Term Hope: Mega Events
Officials hope high-profile events like the 2026 FIFA World Cup (with matches in nearby New Jersey/New York) and the U.S. Semiquincentennial may draw visitors back. Yet industry experts caution that restoring trust and demand will take time.
Long-Term Risk: Domestic Travel Only
A prolonged slump could reshape tourism. If international arrivals don’t rebound, U.S. travel may rely increasingly on domestic tourists—often less lucrative per capita. The ripple effects could persist across regional economies heavily dependent on foreign holidaymakers.
Fresh Opportunities: Offer Value, Reduce Barriers
Some travel experts suggest aggressive promotional discounts, simplified visa experiences, and localised marketing to rekindle interest. Whether these efforts succeed will depend on diplomatic tone and broader policy reforms.
In Summary
By July 2025, New York had joined Florida, California, Maine, Texas, and Nevada in facing a tourism downturn driven by cross-border friction, economic pressures, and political unease. The loss of Canadian visitors—a core source of international tourism—has exposed longstanding vulnerabilities in U.S. travel infrastructure. Without swift policy and perception shifts, the economic repercussions may outlive this summer season.
Only time will tell whether American tourism can regain its global momentum—or whether it risks lagging behind as geopolitics and financial strain keep travelers away.
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