Thursday

05-29-2025 Vol 1975

Decline in Canadian Travel Hits U.S. Coastal Towns Hard

As 2025 unfolds, a growing number of states, including Maine, Montana, California, Washington, Florida, Colorado, New Hampshire, and Nevada, are experiencing a significant drop in Canadian tourism.

This downturn, once unimaginable for communities accustomed to bustling boardwalks filled with Quebec license plates and French-speaking visitors, has left places like Old Orchard Beach grappling with quieter weekends and struggling local businesses.

In a climate marked by rising tariffs, visa delays, political tensions, and shifting global tourism patterns, the influx of international visitors has sharply declined, showcasing a worrying trend.

According to the U.S. Travel Association, international visits to the United States declined by 14% compared to last year, with Canadian travel witnessing an even steeper fall of 20.2%.

With towns dependent on seasonal tourism feeling the economic pinch, the effects of this downturn are already visible across southern Maine’s shoreline.

The hesitation to travel south isn’t purely economic; it is underscored by a powerful advisory from Canada’s former prime minister, urging citizens to refrain from non-essential travel to the United States in light of new tariffs on Canadian exports.

This advisory, compounded by a chilly political atmosphere, has introduced uncertainty for even the most ardent cross-border travelers.

The worries extend beyond Maine’s borders, with New Hampshire, Washington, and Montana also voicing concerns over dwindling international tourism.

In New Hampshire, officials report shrinking hotel bookings and insufficient inquiries from foreign visitors, despite the state’s renowned summer attractions such as Lake Winnipesaukee and the White Mountains.

Much like New Hampshire, Washington state is feeling the effects, with Seattle’s vibrant museums and festivals seeing a decline in foreign attendance.

Tour operators cite visa delays and border apprehensions, particularly affecting German, British, and Scandinavian tourists.

Meanwhile, Montana residents witness a staggering 36% drop in Canadian spending, with hotel bookings plummeting 71% in Kalispell in just one month.

Border crossings at Roosville dropped by more than a quarter in March alone, hitting communities near the Alberta border unexpectedly hard.

Amidst the changing tide, coastal hubs and ski towns are not spared from this downturn.

The renowned ski resorts of Colorado, including Aspen and Vail, report a concerning decrease in winter reservations from abroad, as long visa processing times and rising airfare deter European travelers from visiting.

Resorts that traditionally depend on international tourists are now pivoting to attract domestic visitors to bridge the gap.

In California, the reverberations of this decline are affecting the state’s long-standing status as a premier tourism destination.

After initially leading the post-COVID recovery, California anticipates a 0.7% drop in travel this year, with international tourism expected to fall by over 9%, risking billions of dollars in economic contributions.

The factors contributing to this decline include extended visa waiting periods, reduced international flights, and increased safety advisories from European nations.

In response to these challenges, California has shifted nearly 80% of its tourism marketing budget toward domestic campaigns, focusing on keeping hotels occupied by American travelers.

Florida’s tourism landscape exhibits a similar pattern, with international visitation remaining 20% below pre-pandemic levels.

Despite a slight increase in air arrivals from Canada earlier this year, a broader assessment reveals fewer long-term winter visitors and a shrinking share of international tourists overall.

Stricter visa regulations, rising health insurance costs, and a divided political environment are pushing potential Canadian vacationers to explore other destinations.

To counter this trend, VISIT FLORIDA has redirected its efforts towards appealing to Latin American travelers, specifically from Brazil, Colombia, and Argentina, in hopes of regaining lost tourism.

In Nevada, Las Vegas now sees a decline in overseas visitors, with a 7% drop in attendance during the first quarter of 2025 and a staggering 12% decrease in February.

Convention bookings have also taken a hit, experiencing a 20% drop, as international casino revenues dwindle amidst the absence of Canadian and European travelers.

The capital, Washington D.C., is not immune to these challenges either, as cancellations of tour groups and thinning school trips lead to a notable decrease in international museum traffic.

European tour companies attribute a significant portion of the decline to political instability and safety warnings, which have led D.C. tourism leaders to attempt a rebranding focused on cultural heritage, safety, and an inclusive atmosphere.

This downturn marks more than a seasonal dip; it serves as a national warning.

The World Travel & Tourism Council predicts a staggering $12.5 billion loss in international travel spending for the U.S. this year, with a projected 10% decline in Canadian tourism alone potentially stripping away $2.1 billion and resulting in the loss of 14,000 jobs across the industry.

Hotels, airlines, restaurants, and attractions nationwide are left to navigate the fallout, encountering occupancy rates that lag behind projections, underperforming flight arrivals, and dipping spending at cultural venues.

The repercussions aren’t isolated to leisure travel; they extend into business travel, student exchanges, and event tourism, all suffering in the wake of these changes.

Three primary factors are driving this downturn: visa delays and denials, safety concerns, and an unfavorable political atmosphere.

Long visa processing times for travelers from Europe and South America have become a deterrent, making it less alluring for many to pursue what was once a simple plan.

Safety advisories stemming from increased media coverage of violence and unrest in the U.S. have prompted warnings from several European nations, suggesting travelers exercise caution or reconsider their trips entirely.

Finally, heightened border checks and stricter immigration policies have painted the U.S. as less welcoming, leading many to choose travel destinations perceived as friendlier and more accessible.

While the U.S. faces a grim outlook, other nations are on the rise.

Canada’s recent tourism pact with Greece aims to promote visits between the two nations, while the European Union is enhancing visa-free access for travelers from Asia and South America.

Intra-European travel incentives are thriving as global tourists—loyal Canadians included—are emulating a shift towards countries seen as safer, friendlier, and easier to navigate.

In light of this shift, states like Maine, California, Washington, and others are reevaluating their tourism strategies.

They are ramping up domestic tourism campaigns, promoting regional travel, and adjusting their messaging to better resonate with a more skeptical audience.

However, without significant federal intervention—like streamlined visa processing and diplomatic restoration—the efforts of these states may not suffice to stem the tide.

From Maine’s picturesque coastline to the bustling casinos of Nevada, the narrative remains clear: as fewer Canadians, Europeans, and international guests venture to the U.S., the pulse of the nation’s travel economy is weakening throughout.

image source from:https://www.travelandtourworld.com/news/article/maine-joins-montana-california-washington-florida-colorado-new-hampshire-and-nevada-as-us-faces-sharp-canadian-travel-decline-amid-tariffs-visa-barriers-and-global-tourism-retreat/

Benjamin Clarke