Is boycotting travelling to the U.S. actually worth it? What Canadians need to know before they route their destination plans

Newman's change of heart shows something bigger than one man's birthday plans for his wife. It reflects a financial decision millions of Canadians are shifting to today — and it's reshaping travel habits and household budgets.

Billions at stake — on both sides of the border

The numbers behind Canada's travel boycott to the U.S. are staggering. In 2024, Canadian tourists generated US$20.5 billion (C$28.6 billion) in spending and supported 140,000 American jobs, according to the U.S. Travel Association (2).

That revenue stream has been drying up fast. CBC News reported the U.S. Travel Association now forecasts a US$5.7 billion (C$7.9 billion) loss in international tourism spending for 2025 — a decline it largely attributes to the drop in Canadian visitors (3).

The trend is continuing into 2026. According to Statistics Canada, Canadian-resident return trips from the United States fell 14.5% in February 2026 compared with February 2025, and 31.5% compared with February 2024, before trade tensions began (4). Return trips by air were down 17.6%; trips by automobile declined 12.9% (4).

Canadian land travel to the U.S. fell 30.9% across all of 2025 — a difference of roughly 7.6 million vehicles — according to StatCan's annual border data (4).

The BBC reports some U.S. destinations are being hit particularly hard from the travel boycott (5). Between January and July 2025, Vermont saw 30% fewer Canadian visitors compared to the same period in 2024. Las Vegas reported an 18% year-to-date drop, and other popular destinations for Canadians like Fort Lauderdale and upstate New York have noted similar drops in Canadian tourists.

Why Canadians are staying away — and why it's not a quick fix

This isn't a typical tourism slump driven solely by exchange rates or the economy. The Canadian dollar has weakened in recent years, yet Canadians are still spending on travel. However, they're spending it to explore elsewhere.

In October 2025, an Angus Reid Institute survey found 70% of Canadians were uncomfortable travelling to the U.S. (6). Similarly, a 2025 Abacus survey found that 56% of travellers who initially planned to tour the U.S. either cancelled or changed their plans (7).

"Tourism boycotts do come up over one issue or another, but in my 37 years in the travel industry, I have never seen anything like what the Canadians have pulled off," Amir Eylon, President and CEO of Longwoods International, told Forbes (8). "This is one that's being felt and it's not going away quickly."

Discounts and marketing campaigns are unlikely to reverse sentiment rooted in political principle rather than price. Airlines are already responding to the sustained shift. Air Transat has suspended all U.S. routes for summer 2026 (9). WestJet has cut U.S. capacity by 19%, while Air Canada has trimmed its U.S. capacity by 7% (10).

Canada's tourism economy is picking up the slack

Here's the flip side of the story: The money Canadians are keeping at home is fuelling a domestic tourism boom.

Canada's tourism sector generated nearly C$60 billion in revenue between May and August 2025 alone — a 6% year-over-year increase and a record high, according to Destination Canada (11). Domestic tourism spending surged 6.9% over summer 2024, reaching C$44.37 billion, with inter-provincial travel posting the highest growth as Canadians explored new destinations right at home (11).

For the full year, StatCan reported that domestic tourism spending by Canadian residents rose 2.5% in 2025, continuing similar growth (2.4%) from 2024 (12). Tourism GDP also outpaced the broader economy, growing 2.2% in real terms in 2025, compared with 1.6% for the economy writ large (12).

"As many as 64% of Canadians planned to travel domestically in 2025," according to a TD Bank Group survey cited in a TD Economics analysis, "with Airbnb reporting a 20% in domestic searches (12).”

The World Travel & Tourism Council (WTTC) also projected that domestic visitor spending in Canada would reach nearly C$104 billion in 2025 — more than double the year-over-year growth rate of 2024 (13).

What this means for your travel budget

If you're one of the many Canadians rethinking your travel plans, it helps to understand any financial trade-offs before you book.

U.S. alternatives cost more up front. Flights to London, Paris or Mexico City are typically more expensive than equivalent routes to sunny destinations directly south of the border. A direct return flight from Toronto to Orlando might run C$400 to C$600 in the off-season, whereas a comparable trip to Cancún can be around C$700, and return flights to Lisbon could run you C$1,200 or more. That difference adds up quickly for a family of four.

But the Canadian dollar goes further in some alternatives. Mexico's lower cost of living means many Canadians find their daily spend — food, activities, accommodation — is comparable to or cheaper than an American location, even after accounting for higher airfare. However, European destinations require more planning and research to find equal value.

The good news is that domestic travel is cheaper than you think. Canada's summer 2025 boom wasn't driven by budget travellers staying close to home out of necessity: It came from Canadians choosing to invest in their own country's tourism economy. With the Canada Strong Pass offering free access to all Parks Canada national parks, historic sites and marine conservation areas, the cost of a cross-country trip dropped significantly for many families (14).