Canada’s tourism market is seeing a noticeable shift in 2026 as trade and political tensions with the United States continue to influence travel decisions. Fewer Canadians are travelling south of the border, while more Americans are visiting Canada, helping redirect tourism spending towards domestic and international destinations.
The change follows a sharp decline in Canadian travel to the US during 2025. According to Statistics Canada, Canadian residents made 7.1 million fewer visits to the United States than in 2024, a decline of 23.5%.
Tariffs, political tensions, unfavorable exchange rates and the “Buy Canadian” movement all contributed to the change in travel patterns.
Canadians Shift Travel Spending
The decline in US travel has not simply reduced overall Canadian travel. Much of the spending has moved towards destinations within Canada and overseas.
Canadian residents made about 5 million more domestic visits in 2025, while trips to destinations outside Canada and the US increased by around 1.3 million.
The trend has continued into 2026, with domestic tourism showing further growth.
During the first quarter of 2026, Canadians made 69.1 million domestic trips, up 2.3% from the same period a year earlier. Spending on those trips also increased by 5.1% to C$14.5 billion.
The “Buy Canadian” Effect Reaches Tourism
The shift in travel comes as consumer sentiment towards the United States has changed in Canada.
The “Buy Canadian” movement, which gained momentum amid trade disputes and political tensions, has encouraged consumers to support Canadian businesses and destinations.
For the tourism industry, that has translated into stronger interest in domestic trips as Canadians reconsider where they spend their holiday budgets.
The result is a tourism market in which domestic destinations are capturing some of the spending that previously flowed across the US border.
US Destinations Try to Attract Canadian Visitors
Despite the decline in Canadian travel, several major US destinations are continuing to target the Canadian market with discounts and special offers.
New York City launched its Northern Neighbour Deal from August 18 to September 7, 2026. More than 85 hotels, attractions, restaurants, museums and Broadway shows are participating, with discounts of up to 30%.
Porter Airlines is also offering discounts of up to 20% on eligible New York itineraries.
New York expects around 820,000 Canadian visitors in 2026, making Canada its second-largest international visitor market.
Las Vegas has also introduced an incentive for Canadian travellers. The “Vegas At Par” promotion from Circa Resort & Casino, The D Las Vegas and Golden Gate allows eligible Canadians to receive a 1-to-1 value between Canadian and US dollars on selected hotel, gaming and bar offers through August 31, 2026.
The promotion comes as the Canadian dollar has remained weaker against the US dollar. Earlier in 2026, the exchange rate was around C$1.37 for US$1, making travel to the US more expensive for many Canadians.
Border Communities Feel the Impact
The decline in Canadian travel has been particularly noticeable in communities close to the US-Canada border.
International Falls, Minnesota, for example, has seen some businesses report losses of as much as 30% in Canadian sales.
For communities that have traditionally relied heavily on Canadian shoppers and visitors, the reduction in cross-border traffic has created a direct economic impact.
The situation also highlights how quickly changes in consumer sentiment, exchange rates and political relations can affect tourism-dependent border economies.
More Americans Are Travelling to Canada
While Canadian travel to the United States has weakened, the opposite trend is emerging on the Canadian side of the border.
During the first quarter of 2026, US residents made approximately 3.6 million trips to Canada, an increase of 3.4% from the previous year. Spending by US visitors rose even more sharply, increasing 16.5% to about C$3 billion.
The growth continued during the summer.
US residents made around 2.66 million trips to Canada in July 2026, up 6.5% year over year. In August, the number reached approximately 2.43 million, an increase of 2.4%.
August marked the seventh consecutive month in which US travel to Canada recorded year-over-year growth.
US visitors are also spending more during their trips. During the first quarter, the average spending per overnight US visit was approximately C$1,323, with visitors staying an average of 5.4 nights.
Currency Advantage Supports Canadian Tourism
The exchange-rate difference is another factor supporting Canada’s appeal among US travellers.
With the Canadian dollar weaker than the US dollar, American visitors can generally get more value from their spending in Canada.
That advantage could be particularly important for destinations in Atlantic Canada and other regions where tourism operators are looking to attract more visitors from the United States.
Halifax, for example, has seen increased interest from US travellers, although the exact level of growth varies depending on the period and type of travel being measured.
Canadians Are Also Travelling Overseas
The shift away from the US has not resulted only in more domestic travel.
Canadians are also increasingly choosing international destinations outside the United States.
During the first quarter of 2026, Canadians made around 4.6 million trips overseas, an increase of 6.2% from a year earlier. Spending on those trips rose 16.7% to C$10.1 billion.
Mexico remained one of the leading destinations, receiving around 1.3 million Canadian visitors during the period. The Dominican Republic recorded approximately 441,000 Canadian trips, while Costa Rica received around 193,000.
Some destinations have also recorded notable increases in Canadian visitors. Japan gained around 79,000 additional Canadian trips, France saw an increase of approximately 57,000, and Mexico added about 51,000.
The figures suggest that Canadians who are travelling less to the US are not necessarily staying home. Many are choosing domestic destinations, while others are redirecting their international travel to countries outside North America.
Canadian Travel to the US Shows Signs of Recovery
Despite remaining below pre-tension levels, Canadian travel to the United States has started to show signs of recovery in 2026.
In August, Canadian residents returned from the US on approximately 2.57 million trips by air and automobile, an increase of 8.8% from the same month in 2025. It was the fifth consecutive month of year-over-year growth.
However, the figures remain well below 2024 levels. Canadian automobile trips from the US were still 27.4% below August 2024, while air travel was 22.7% lower.
That suggests the recent increase represents a recovery from the unusually weak travel levels recorded in 2025 rather than a full return to previous patterns.
North American Tourism Patterns Are Changing
Canada’s tourism industry is therefore entering a period of changing travel patterns.
Fewer Canadians are travelling to the United States than before the trade tensions, while domestic tourism, overseas travel and visits from American travellers are all showing growth.
US destinations are continuing to offer incentives to bring Canadian visitors back, while Canadian destinations are benefiting from increased interest among US travellers.
The longer-term impact will depend on exchange rates, consumer sentiment and the future direction of Canada-US trade and political relations. For now, however, the numbers point to a clear change in where North American travellers are choosing to spend their tourism dollars.
