U.S. Businesses Impacted by Plummeting Canadian Tourism
American businesses along the northern border are experiencing a drastic decline in Canadian tourism, impacting their revenue streams significantly. A report from the Joint Economic Committee (JEC) highlights this downturn, citing a nearly 20% decrease in Canadian vehicles crossing the U.S.-Canada border from January to October 2025 compared to the previous year.
Impact of the Decline in Canadian Tourism
The sharp drop in visitors is attributed to rising prices, a weaker Canadian dollar, and growing political tensions. As a result, many Canadians are favoring domestic travel or exploring alternative international destinations. This shift is acutely felt in border communities where businesses have historically relied on Canadian visitors.
Statistical Decline in Cross-Border Traffic
- Decrease in passenger vehicles crossing the border: nearly 20% (January to October 2025 vs. 2024)
- Some border states report declines reaching up to 27%
This decline translates to fewer tourists, increased hotel vacancies, and reduced sales in retail shops and restaurants. U.S. Senator Maggie Hassan from New Hampshire emphasizes that Canadian tourists have traditionally accounted for a significant portion of visitors to border states, and their absence poses a threat to local economies.
Feedback from Local Business Owners
Local business owners are expressing their concerns about the impact of decreased Canadian visitation. For instance, Elizabeth Guerin, owner of a gift shop in Colebrook, New Hampshire, notes a stark reduction in Canadian customers, who have historically made up 15-25% of her business.
Similarly, Scott Osborn of Fox Run Vineyards in New York reports that a drop in Canadian tourism has led to fewer tastings and tours, significantly affecting his business’s overall performance.
Long-term Consequences
Many operators worry that the shift in travel patterns may have lasting repercussions. As Canadian travelers seek new experiences elsewhere, the potential for regaining their loyalty becomes uncertain.
Key opinions reflect a sentiment of concern about the long-term damage to U.S.-Canada relations and the emotional ties that tourists have historically shared with border communities. Christa Bowdish, owner of a Vermont inn, highlights the challenges of rekindling relationships as Canadians create new traditions and memories elsewhere.
Conclusion
As U.S. businesses navigate this downturn in Canadian tourism, they face the dual challenge of understanding when Canadians may return and whether they can recover the business lost during this critical period. The ongoing effects emphasize the intertwined fates of local economies and cross-border tourism, a vital component of their livelihood.
