In a dramatic shift shaking up the travel industry, Canadians are turning their backs on traditional U.S. vacation hotspots like Las Vegas and Florida, opting instead for vibrant international destinations.
Fueled by an escalating trade war and political tensions, this trend is reshaping Canadian travel habits, with data revealing a surge in bookings to far-flung locales like Buenos Aires, Osaka, and Copenhagen.
As Canadians redirect their travel dollars, the U.S. tourism sector faces significant losses, while other countries capitalize on this unexpected opportunity.
Here’s why Canadians are skipping the U.S. and where they’re headed instead.
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A New Era for Canadian Travel
For years, the United States has been the go-to destination for Canadian travelers, drawn by its proximity, diverse attractions, and cultural familiarity.
In 2024, Canadians made 20.4 million trips to the U.S., contributing a staggering $20.5 billion to the American economy, according to the U.S. Travel Association.
However, the recent trade war, sparked by U.S. tariffs and provocative political rhetoric, has prompted a seismic shift in travel preferences.
Many Canadians, feeling slighted by policies and statements from the U.S., are choosing to spend their vacation budgets elsewhere.
Kelly Bergquist, an Edmonton-based avid traveler, embodies this change.
Once a regular visitor to the U.S., Bergquist’s last trip south was in August 2024 for a concert in Las Vegas.
Now, with tensions running high, she’s reconsidering her plans.
“I don’t want to support the U.S. economy right now,” Bergquist told.
“If they’re going to treat us this way, I’d rather spend my money elsewhere.”
Her next adventures?
A potential trip to Mexico and a confirmed journey to the Balkan countries in southeastern Europe in 2026.
“I could’ve booked a Mississippi River cruise or a U.S.-based trip, but I’m putting those plans on hold until things settle down,” she added.
Bergquist’s sentiment is echoed across Canada, as travelers respond to the trade war and controversial U.S. policies, including President Donald Trump’s remarks about Canada becoming the “51st state.”
Former Prime Minister Justin Trudeau’s call to “choose Canada” and explore domestic destinations has resonated, but new data shows Canadians are also looking beyond their borders to international hotspots, driving a boom in global travel.
Where Canadians Are Traveling Instead
Recent data from Flight Centre Canada, paints a vivid picture of this shift.
Between May 1 and July 30, 2025, Canadian travel spending to several international destinations skyrocketed compared to the same period in 2024.
Buenos Aires, Argentina, saw a staggering 148% increase in travel spending, while Osaka, Japan, jumped 137%.
Copenhagen, Denmark, experienced a 112% surge, and Curaçao in the Caribbean saw a 101% rise.
Other destinations like Aruba (up 71%), Lisbon, Portugal (up 61%), Prague, Czech Republic (up 38%), Barcelona, Spain (up 35%), Dublin, Ireland (up 29%), and Cape Town, South Africa (up 27%) are also reaping the benefits of this trend.
Tourism boards from these countries confirm the uptick.
The Japan National Tourism Organization reported a 23% increase in Canadian visitors from January to June 2025, with 335,400 travelers compared to 272,264 in 2024.
Turismo de Portugal noted a 6.5% rise in Canadian visitors from January to May, while Visit Brasil recorded a 12.9% increase, with 57,065 Canadian tourists in the first half of 2025 compared to 50,556 the previous year.
These numbers highlight a clear pivot away from the U.S. toward diverse global destinations.
Why Canadians Are Choosing International Destinations
Several factors are driving this shift.
The trade war, marked by U.S. tariffs on Canadian goods, has increased travel costs, making U.S. trips less appealing.
Higher fuel prices, accommodation rates, and imported goods have hit Canadian wallets hard, prompting many to seek better value elsewhere.
Andrew Stafford, a manager at Flight Centre in Vancouver, noted that clients are increasingly opting for longer, more adventurous trips to international destinations over short U.S. getaways.
“Instead of quick trips across the border, people are saving up for bigger vacations to places like Europe or the Caribbean,” Stafford said.
“They’re still traveling, just choosing different destinations.”
The weaker Canadian dollar also plays a role, making domestic and select international destinations more cost-effective.
Additionally, political tensions, including stricter U.S. border policies and reports of Canadian tourists facing scrutiny or detention, have fueled unease.
Joan Allison, a Windsor, Ontario, resident who typically spent four months annually in Fort Myers Beach, Florida, is one of many rethinking her plans.
Citing Trump’s policies, including pardons for Jan. 6 insurrectionists and heightened border security, Allison said, “The threats to our economy are massive, and I have no desire to spend money in the U.S. right now.”
She’s now booked a trip to Portugal and is considering other sunny destinations for 2026.
Wayne Smith, director of the Institute for Hospitality and Tourism Research at Toronto Metropolitan University, emphasized the importance of feeling safe and welcome.
“Canadians are choosing destinations where they feel comfortable and valued,” he said.
“With U.S. cities like Las Vegas and Los Angeles becoming more expensive and the political climate creating uncertainty, many are looking elsewhere for their vacations.”
The Impact on U.S. Tourism
The decline in Canadian travel is hitting the U.S. tourism industry hard.
In 2024, Canadians accounted for roughly one-quarter of all international visitors to the U.S., making them a critical market.
The U.S. Travel Association warned that even a 10% drop in Canadian tourism could result in $2.1 billion in lost spending and 140,000 job losses.
With recent data showing a 33% drop in Canadian car trips and a 22% decline in air travel in June 2025, the economic impact could exceed $6 billion this year alone.
States like Florida, California, Nevada, New York, and Texas, which rely heavily on Canadian visitors for retail and hospitality revenue, are feeling the pinch.
The World Travel & Tourism Council (WTTC) projects a $12.5 billion loss in international visitor spending for the U.S. in 2025, with Canada’s retreat being a major driver.
This shortfall, combined with a projected $16.3 billion loss in expected tourism growth, could result in a total economic hit of up to $29 billion, according to Tourism Economics.
The ripple effects are evident in border cities and tourist hubs, where hotels report cancellations and local businesses see fewer Canadian visitors.
A Boom for Canada and Beyond
While the U.S. grapples with these losses, Canada’s domestic tourism sector is thriving.
Domestic visitor spending is projected to reach $104 billion in 2025, an 8.3% increase from 2024, according to the WTTC.
Initiatives like the “Canada Strong Pass,” offering discounted access to national parks and museums, are encouraging Canadians to explore their own country.
Popular destinations like Tofino, St. John’s, and Gaspésie have seen search increases of 30% or more, per Expedia’s Summer Travel Outlook.
Internationally, countries like Mexico are capitalizing on the shift.
Marival Group, a Canadian-owned hotel chain in Mexico, reported a 5-6% increase in Canadian guests at its all-inclusive resorts, translating to about 15,000 additional visitors.
Salvador Ramos, vice president of sales and marketing, expects this number to grow during the high season starting in November.
The company is ramping up efforts to attract Canadians through targeted digital campaigns in 20 Canadian cities, Google ads, and partnerships with magazines and sporting events.
“Canadians are a coveted market for us,” Ramos said.
“We’re doing everything we can to make them feel welcome.”
Long-Term Implications
Experts warn that the shift in Canadian travel patterns may not be temporary.
Smith from Toronto Metropolitan University suggests that the combination of high costs, political tensions, and border concerns could lead to a long-term chill in U.S. travel.
“If Canadians have positive experiences in new destinations, they may continue to choose those over the U.S.,” he said.
For travelers like Bergquist and Allison, the decision to explore new places is both practical and symbolic.
“It’s not just about saving money,” Bergquist said.
“It’s about feeling good about where I’m spending my time and resources.”
As Canada’s tourism sector anticipates a record-breaking $183 billion contribution to the economy in 2025, the country is positioning itself as a top destination for both domestic and international travelers.
Meanwhile, the U.S. faces the challenge of rebuilding trust and attracting visitors in a competitive global market.
For now, Canadians are embracing the opportunity to discover new horizons, from the vibrant streets of Buenos Aires to the serene beaches of Curaçao, proving that travel is as much about values as it is about adventure.
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