New statistics reveal a significant decline in Canadian spending on travel to the United States, with a drop of $3.3 billion in 2025, largely attributed to the ‘Buy Canadian’ movement. According to a report from Statistics Canada released on Wednesday, Canadians opted for international travel over visiting their southern neighbour, resulting in a 21.5 per cent decrease in outbound leisure trips to the U.S. and a 12.2 per cent increase in overseas travel.
Canadians Favour Overseas Travel
The move towards international travel reflects changing priorities among Canadian travellers. The data shows a reduction of 3.2 million visits to the U.S. in 2025, with the total spending on U.S. travel amounting to $18.8 billion, while overseas travel expenditures surged to $81.3 billion. This shift occurred against the backdrop of rising tensions from the U.S. administration’s trade policies and a growing sentiment among Canadians to support their domestic economy.
Statistics Canada noted that travel to visit family and friends in the U.S. also saw a decline, dropping by nine per cent. The agency highlighted that this trend indicates a broader cultural shift among Canadians, who are increasingly choosing to explore destinations beyond the U.S.
A Response to Political Climate
The ‘Buy Canadian’ movement has been a significant factor in this travel trend. The ongoing trade war and aggressive remarks from former U.S. President Donald Trump, suggesting Canada might become the “51st state,” have prompted many Canadians to rethink their travel plans. The first signs of recovery in cross-border travel appeared in April, with a 1.8 per cent year-over-year increase in return trips from the U.S. This resurgence was largely fuelled by automobile travel, which rose by 8.1 per cent, with 65 per cent of these trips being same-day visits.
Statistics Canada noted that, historically, the U.S. has been a favoured destination for Canadians due to its proximity and appealing climate. However, the shift in U.S. policies under the new administration has caused a notable change in travel behaviour.
Air Travel Trends and Airline Responses
The statistics also revealed a 7.9 per cent drop in the number of passengers travelling between Canada and the U.S., with 29.4 million travellers recorded in 2025. In contrast, domestic air travel saw a modest increase of 2.9 per cent, while international flights to destinations outside the U.S. grew by 5.1 per cent.
In response to these trends, several airlines have adjusted their routes, cancelling transborder flights in favour of new international routes. This realignment reflects not only shifts in consumer demand but also an adaptation to changing market conditions.
The Rise in Leisure Travel Abroad
Interestingly, leisure travel abroad has become a primary driver of increased tourism spending. Statistics Canada reported that in 2025, 54 per cent of Canadians’ international trips were for holiday, leisure, and recreation purposes, with spending on leisure-related visits to the U.S. decreasing by $2.2 billion to $12.1 billion. Meanwhile, expenditures on leisure trips to other countries grew by $3.6 billion, reaching a total of $22.8 billion.
The report indicates that this trend is expected to persist into 2026, as early data suggests that the decline in travel to the U.S. will continue. The allure of international destinations is proving to be a significant draw for Canadian travellers, further underscoring a shift in travel preferences.
Why it Matters
The decline in Canadian travel spending to the U.S. highlights a substantial shift in consumer behaviour driven by both political and economic factors. As Canadians increasingly opt for overseas destinations, this change may have lasting implications for the tourism sectors in both Canada and the U.S. The growing preference for international travel not only signifies a potential decline in cross-border economic ties but also reflects a broader cultural movement towards supporting domestic and international alternatives. This evolution in travel habits could reshape the landscape of tourism in North America for years to come.
