Home » America Travel News » New England Joins North Dakota, Minnesota, and New York Face Devastating Tourism Slump as Canadians Abandon US, Hammering the American Travel Economy
Published on
September 21, 2025
By: Tuhin Sarkar
In 2025, New England joins North Dakota, Minnesota, and New York in grappling with a significant tourism slump as Canadian visitors abandon the U.S. This sharp decline is severely impacting the American travel economy.
Once reliant on Canadian tourists, these regions are now facing reduced revenues, empty hotel rooms, and a drop in retail and dining spending. The reasons behind this shift are varied, ranging from political tensions and economic challenges to changing travel preferences.
As Canadians opt for other destinations, U.S. border states are experiencing job losses and business closures. The effects are felt across local economies, especially in areas that have long depended on cross-border tourism.
With fewer Canadians visiting, these states are forced to rethink their strategies for attracting tourists. It’s clear that the loss of Canadian tourism is hammering the American travel economy, and urgent action is required to address this issue.
In 2025, the United States is experiencing a decline in tourism, particularly from one of its largest international visitors – Canada. Over the years, Canadians have been key to the success of the U.S. tourism industry, with millions making their way south for vacations, business trips, and leisure. However, recent data shows a significant drop in Canadian visitors. This article will explore why this decline is happening, its impact on different U.S. regions, and what the country can do to address it.
The Decline in Canadian Visitors to the US
Canada has traditionally been one of the United States’ biggest sources of international tourists. In 2025, however, there has been a marked decrease in Canadian travel to the U.S. Data from the U.S. Department of Commerce’s International Trade Administration reveals that the number of Canadian visitors dropped by 16.8% from January to May 2025, compared to the same period in 2024. This slump is part of a larger trend, with international tourism to the U.S. seeing a slight overall decrease of 2.4%. Among the countries that have cut back the most on visits to the U.S., Canada stands out. With fewer Canadians traveling to the U.S., this has raised concerns for the U.S. economy, particularly for tourism-dependent regions.
Why Are Canadians Visiting the U.S. Less in 2025?
Several factors are driving this decline in Canadian tourism to the U.S. These include political tensions, stricter immigration policies, economic factors, and changing travel preferences.
Tariffs and Trade Tensions
One major reason for the decrease in Canadian tourists is the political climate between the two countries. In recent years, tariffs and trade disputes have strained U.S.-Canada relations. U.S. trade policies, including tariffs on Canadian goods, have led to increased costs for Canadian visitors traveling to the U.S. These additional costs can deter Canadians from visiting the U.S., especially when they may find it more expensive to travel.
Stricter U.S. Immigration Policies
Another factor is the tightening of U.S. immigration policies. The U.S. has introduced stricter visa and border entry requirements, which can create a deterrent for Canadian tourists. The added complexity and uncertainty surrounding border crossings discourage many Canadians from making the trip to the U.S.
Economic Factors
Economic conditions, particularly the exchange rate between the U.S. and Canadian dollar, also play a role. When the Canadian dollar is weaker against the U.S. dollar, it increases the cost of travel. For many Canadians, this means that vacations to the U.S. become more expensive, and they may choose alternative, more affordable destinations.
Changing Travel Preferences
Another significant factor is the shift in travel preferences. Canadians are increasingly choosing to vacation in other countries or within Canada itself. The rise of domestic tourism has been fueled by the desire to explore local destinations and enjoy the beauty of Canada’s own national parks, cities, and landscapes. Additionally, the appeal of other international destinations, especially in Europe and Asia, has drawn Canadians away from the U.S.
The Impact of Declining Canadian Tourism on U.S. Border States
The tourism slump is hitting U.S. border states the hardest. Regions that historically rely on Canadian visitors, such as New York, Minnesota, and North Dakota, are now struggling to maintain the levels of tourism they once enjoyed. In these states, Canadian tourists have been a major source of revenue for hotels, restaurants, retailers, and other businesses.
New York: A Significant Decrease in Visitor Numbers
Upstate New York has seen a dramatic decline in Canadian visitors. For example, in July 2025, the number of Canadians crossing the border into New York dropped by 22%, resulting in almost 500,000 fewer travelers than the previous year. This decrease has been particularly felt in cities like Buffalo and Rochester, where Canadian visitors made up a significant portion of the tourist population. As a result, local businesses that rely on Canadian customers are facing a tough time, struggling to make up for the lost revenue.
Minnesota: Adjusting to the New Reality
Minnesota has also felt the decline in Canadian tourism. In 2025, approximately 20% of the state’s tourism revenue came from Canadian visitors. But as the number of Canadian tourists dropped, this income stream dried up. Hotels and other accommodations reported fewer bookings from Canadian travelers, and local businesses are now forced to adjust their marketing strategies. Tourism boards are considering targeting new markets or ramping up efforts to attract domestic tourists to make up for the decline in Canadian visitors.
North Dakota: A Steady Drop in Border Crossings
North Dakota, another state that depends on Canadian tourism, has seen a 14.2% decline in border crossings in 2025 compared to the same period in 2024. Local tourism businesses have been hit hard by this drop. The state has been trying to adapt by focusing more on attracting tourists from other regions of the U.S. and improving its marketing efforts in Canada. However, the effects of this decline are still being felt across the state.
The Economic Toll: Lost Jobs and Revenue
The decline in Canadian tourism to the U.S. has significant economic implications. According to the U.S. Travel Association, a 10% drop in Canadian tourism could lead to a loss of $2.1 billion in spending. This would also result in the loss of around 140,000 jobs across various sectors, including hospitality, retail, and transportation.
Many border communities are especially vulnerable, as they rely heavily on Canadian tourists for their livelihoods. The loss of business in these regions not only affects hotels and restaurants but also impacts jobs that are directly or indirectly related to tourism, such as drivers, guides, and retail staff. As Canadian tourism continues to decline, more and more workers in these regions may face job insecurity.
The Future Outlook: What Can the U.S. Do to Address the Decline?
Despite the challenges posed by the decline in Canadian visitors, there are several steps the U.S. can take to recover lost tourism revenue and attract more international visitors.
Marketing Campaigns and Strategic Partnerships
One of the most important measures the U.S. can take is to ramp up its marketing efforts. Tourism boards in U.S. border states should target Canadian tourists with special promotions, discounts, and targeted marketing campaigns. These efforts should focus on making U.S. travel more affordable and accessible for Canadians, especially in the face of the weakened Canadian dollar.
Additionally, U.S. states should work closely with their Canadian counterparts to build stronger cross-border tourism partnerships. These partnerships can help boost travel between the two countries and restore the flow of Canadian tourists.
Policy Changes and Advocacy
It is also essential for local governments to advocate for changes in U.S. immigration policies to make it easier for Canadians to travel. Streamlining border procedures, reducing the cost of visas, and offering visa waivers for Canadian tourists could help increase Canadian visitation.
Furthermore, relaxing trade tariffs and improving economic relations with Canada would help create a more favorable environment for tourism between the two countries.
Promoting Domestic Tourism
To lessen the dependence on international visitors, U.S. border states should also look to domestic tourism to fill the gap. Creating new attractions, events, and experiences to draw U.S. citizens to these regions could help offset the loss of Canadian visitors. In fact, many U.S. states have already launched campaigns aimed at encouraging domestic travel within their borders.
The Need for Action to Revive Canadian Tourism
The decline in Canadian tourism to the U.S. in 2025 presents a significant challenge for the tourism industry, especially in U.S. border states that rely on Canadian visitors. While the decline is driven by a variety of factors, including political tensions, economic conditions, and changing travel preferences, it is clear that the U.S. must take action to reverse this trend.
Through targeted marketing campaigns, policy changes, and strategic partnerships with Canada, the U.S. can work towards restoring the flow of Canadian tourists. At the same time, states need to diversify their tourism offerings to attract both international and domestic visitors. By taking these steps, the U.S. can ensure that its tourism industry remains strong, even in the face of challenges from neighboring Canada.
New England Tourism in 2024 and 2025: Growth, Impact, and Key Trends Shaping the Future
New England is one of the most visited regions in the United States. The tourism industry in this area has been growing rapidly, with a significant rise in visitor spending and job creation in recent years. In this article, we’ll look at how tourism has been performing in New England, the key trends shaping its future, and what we can expect for 2025. This report is based on official data from state and government sources, providing you with a clear picture of how tourism is evolving in this part of the country.
New England: A Popular Tourist Destination
New England is made up of six states: Massachusetts, Connecticut, New Hampshire, Maine, Vermont, and Rhode Island. It is known for its rich history, stunning landscapes, and vibrant cities. Whether it’s enjoying the fall foliage in Vermont or exploring the historic streets of Boston, tourists flock to New England all year round.
Tourism is one of the major industries in the region. Visitors come from all over the world to experience the culture, nature, and history that New England offers. In 2024, tourism has shown a strong rebound, with more visitors and higher spending than in previous years.
The Rise in Visitor Spending and Economic ImpactMassachusetts: Leading the Way in Visitor Spending
In Massachusetts, tourism has become a key contributor to the state’s economy. In 2023, Massachusetts saw more than 52 million visitors who spent an impressive $23.6 billion. This is a 5.3% increase from the previous year. The spending generated $2.3 billion in state and local taxes, showing how much tourism supports the local economy. In addition, over 154,000 jobs were supported by the tourism industry in Massachusetts alone.
Massachusetts is home to many famous tourist spots, including the city of Boston, Cape Cod, and the beautiful beaches of the south shore. The state’s tourism sector is expected to keep growing in 2024, and many businesses are benefitting from the increase in visitors.
Connecticut: A Growing Hub for Tourists
Connecticut is another state seeing strong growth in tourism. In 2024, Connecticut welcomed 70 million visitors, an increase of 3.1% from the previous year. Visitors spent $11.6 billion, marking a 5.3% rise in tourism spending. This growth is not just good for businesses; it also helps the state’s economy by supporting jobs in industries like hospitality, transportation, and retail.
In Connecticut, you can visit vibrant cities like Hartford and New Haven, or explore beautiful coastal towns like Mystic and Old Saybrook. These places are drawing more visitors each year, and Connecticut is becoming an even more attractive place for tourists.
New Hampshire: A Popular Destination for Outdoor Enthusiasts
New Hampshire’s tourism industry is thriving, especially in 2025, when many tourists are expected to visit for outdoor activities. The state’s forests, mountains, and lakes are popular destinations for nature lovers, particularly during the summer and winter months. The state’s ski resorts are especially busy in the colder months, drawing thousands of visitors each year.
New Hampshire’s tourism growth is expected to continue, with some estimates showing that over 45 million people will travel to the state in the coming year. This includes families visiting for skiing, hiking, and camping, as well as tourists exploring the state’s charming small towns and villages.
Vermont: Winter Tourism and Outdoor Recreation
Vermont is known for its beautiful natural scenery, and winter tourism plays a big part in its economy. Skiing is one of the most popular activities, with the state boasting some of the best ski resorts in the country. In 2024-2025, Vermont is expecting a strong winter season, with many visitors coming to enjoy skiing, snowboarding, and other winter sports.
Besides skiing, Vermont also attracts visitors for its charming small towns, local food, and peaceful countryside. In 2025, more tourists are expected to visit for winter vacations, making Vermont a key player in the New England tourism sector.
Maine and Rhode Island: Quietly Thriving
Maine and Rhode Island may not see the same numbers as some of the larger states in New England, but they are still significant contributors to the region’s tourism industry. Maine is known for its stunning coastline, national parks, and seafood, particularly lobsters. Rhode Island, with its beautiful beaches, coastal towns, and rich history, also sees a steady flow of visitors each year.
Both states are focusing on enhancing their tourism infrastructure to attract more visitors in the coming years. As more people discover the charm of these two states, tourism in Maine and Rhode Island is expected to rise steadily.
Key Trends Shaping New England Tourism in 2024 and 2025Outdoor Recreation is More Popular Than Ever
One of the biggest trends in New England tourism is the growing interest in outdoor activities. Visitors are increasingly seeking natural experiences, from hiking in the White Mountains of New Hampshire to skiing in Vermont. The region’s parks, beaches, and forests are major attractions, and they are drawing more tourists each year.
This trend is expected to continue into 2025, with more visitors opting for eco-friendly and outdoor-focused vacations. New England’s wide range of outdoor activities makes it an ideal destination for nature lovers, adventure seekers, and families.
Cultural and Heritage Tourism
New England is rich in history, and more tourists are visiting the region to learn about its past. Boston is particularly popular for its historical sites, including the Freedom Trail and the Boston Tea Party Museum. Other states, like Connecticut and Rhode Island, also offer a wealth of cultural attractions, including museums, historic homes, and art galleries.
As more people become interested in cultural tourism, New England is positioning itself as a leader in offering authentic, history-filled travel experiences. The focus on culture and heritage is expected to grow in 2025, with more people visiting New England to explore its storied past.
The Growth of Farm-to-Table and Culinary Tourism
Food plays a big part in New England’s tourism industry, with visitors flocking to the region to taste local dishes. The farm-to-table movement has been gaining popularity in recent years, with many tourists choosing destinations that offer fresh, locally sourced food. This trend is particularly strong in Vermont, Maine, and Massachusetts, where local farmers and chefs are working together to create unique dining experiences.
Culinary tourism is expected to continue growing in 2025, with more visitors choosing New England for its diverse food scene. From lobster rolls in Maine to maple syrup in Vermont, the region has a lot to offer food lovers.
Sustainable Tourism
As more tourists become aware of their environmental impact, sustainable tourism has become a key focus for many destinations in New England. States like Massachusetts and Vermont are working to promote eco-friendly travel, from green hotels to sustainable outdoor activities. This trend is likely to continue into 2025, as more visitors seek to reduce their carbon footprint while enjoying their vacations.
New England’s commitment to sustainability is attracting eco-conscious travelers who want to enjoy the region’s natural beauty while supporting efforts to protect the environment.
The Economic Impact of Tourism in New England
Tourism is not just important for the economy in New England; it is a driving force behind many industries. In 2024, the region saw significant increases in visitor spending, which in turn helped create thousands of jobs. From hotel staff to restaurant servers, many workers rely on tourism for their livelihoods.
In Massachusetts alone, tourism supported over 154,000 jobs. These jobs range from positions in the hospitality industry to roles in transportation, retail, and more. As the tourism industry grows, these jobs will continue to increase, benefiting local economies and communities across New England.
Additionally, tourism brings in significant tax revenue for state and local governments. In Massachusetts, for example, tourism generated $2.3 billion in taxes. This money helps fund essential services, including schools, roads, and public safety programs, making tourism an essential component of the region’s economy.
What to Expect for 2025: A Bright Future Ahead
Looking ahead to 2025, New England’s tourism industry is set to continue its upward trend. While specific projections are not yet available, the early signs are positive. States across the region are making efforts to attract more visitors by enhancing their tourism offerings and investing in infrastructure.
In particular, New Hampshire’s tourism marketing and Massachusetts’ “Rev250” celebrations are expected to draw large numbers of tourists. Vermont’s continued focus on winter tourism and outdoor activities will likely keep the state a top destination for visitors. Connecticut, with its growing appeal to international tourists, is also poised for continued growth in the coming years.
Sustainable tourism will continue to be a key focus in 2025, as more travelers seek eco-friendly options. The region’s commitment to preserving its natural beauty while welcoming tourists will be crucial to its long-term success.
New England’s tourism industry is experiencing significant growth, with increased visitor spending, job creation, and a focus on sustainable travel. From outdoor adventures in Vermont to cultural experiences in Massachusetts, the region offers something for every type of traveler. The tourism sector in New England is expected to keep growing in 2025, with more visitors exploring its rich history, stunning landscapes, and vibrant cities. With a focus on sustainability and cultural heritage, New England is positioning itself as one of the top destinations for tourists in the coming years.
By focusing on the key trends shaping the tourism industry and continuing to invest in the region’s infrastructure, New England is set to enjoy a bright future. Whether it’s through outdoor recreation, culinary tourism, or eco-friendly travel options, the region is ready to welcome even more visitors in 2025 and beyond.
