Canada Tourism and the Influence of U.S. Politics in 2025
With Donald Trump’s new administration, changes in the U.S. economy and immigration policies could directly impact Canadian tourism.
31/01/2025 - Donald Trump’s re-election in the United States has introduced uncertainties for the North American tourism industry. As the top source of tourists to Canada, the U.S. economy and travelers’ behavior play a crucial role in the demand for temporary accommodations. Additionally, declining international interest in visiting the U.S. could boost travel to Canada.
Impact of the U.S. Economy on Canadian Tourism
The U.S. economic outlook is a key factor in Americans’ travel plans. If budget cuts become necessary, travel frequency may decline. On the other hand, the appreciation of the U.S. dollar against the Canadian dollar makes Canada a more affordable destination for American tourists. This could benefit the Canadian lodging sector by increasing demand for temporary accommodations.
Watch BNN Bloomberg’s video analysis on how these changes could affect Canadian tourism.
Canadian Tourists’ Travel Decisions
U.S. elections also influence Canadians’ travel choices. A Narrative Research poll found that one in three Canadians intends to travel less to the United States. This trend is even more pronounced in Quebec, where interest in visiting the U.S. is projected to drop by 21%. As domestic tourists form the largest group of temporary accommodation users in Canada, this shift could benefit national tourism.
International Tourists Avoiding the U.S.
In France, a key source of visitors to Quebec, more people say they are likely to reduce their trips to the U.S. than those who plan to increase their visits under Trump’s presidency. A YouGov study highlights this trend across more than ten countries.
In the UK, a Holiday Extras survey found that 17% of British travelers plan to avoid the U.S. in 2025 due to Trump’s re-election. This marks the first time a foreign election has significantly influenced British travel preferences, comparable to the impact of global conflicts in the Middle East and Ukraine.
Learn more on Travel and Tour World.
A YouGov study highlights this trend across more than ten countries. With some tourists avoiding the U.S., alternative destinations are gaining traction. Canada is emerging as a preferred option for those seeking cultural experiences, political stability, and diversity.
Immigration Policies and Their Impact on Hospitality
U.S. immigration policies also have indirect effects. While the U.S. tightens immigration rules, Canada is unlikely to absorb this demand. In fact, Canada reduced its immigration targets in 2024, issuing 10% fewer permanent residency invitations compared to 2023. This indicates that hospitality sector growth will stem from tourism rather than new residents.
Unanswered Questions
In the coming months, several key questions remain:
- Which destinations will benefit the most from this new landscape?
- Will the number of U.S. tourist visas decline again, as it did during Trump’s first term?
- Do social media statements from travelers avoiding the U.S. reflect a lasting trend?
While these questions remain open, Canada’s tourism sector can prepare for a potential surge in demand. Destinations that successfully capitalize on this shift and offer compelling experiences will have a competitive edge.
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