California, Michigan and U.S.-Canada border destinations are facing changing travel patterns as Canadian visitors continue to reduce trips to the United States amid ongoing trade and political tensions between the two countries. The decline is affecting tourism businesses that depend on Canadian travellers, including hotels, restaurants, retailers, attractions and transportation providers.
Statistics Canada reported that Canadian-resident trips to the United States fell sharply in 2025, with 23.1 million trips recorded, down 23.5% from 2024. Spending on those visits declined 15.1% to C$18.8 billion. Early 2026 data indicate that the reduction in U.S.-bound travel has continued.
Canadian Travel to the United States Continues to Decline
The reduction is particularly important because Canada has historically been one of the largest international visitor markets for the United States.
Statistics Canada found that Canadian-resident leisure travel to the United States fell by 21.5% in 2025, representing approximately 3.2 million fewer leisure-related visits. At the same time, Canadian leisure travel to overseas destinations increased by 12.2%.
The shift means that some travellers who previously selected U.S. destinations are instead choosing domestic Canadian holidays or international destinations outside the United States.
Michigan Feels the Impact of Cross-Border Travel
Michigan is particularly connected to Canadian tourism because of its proximity to Ontario.
Detroit and Windsor sit directly across the Detroit River, while the Blue Water Bridge connects the Port Huron area with Sarnia, Ontario. These crossings support leisure trips, shopping, family visits and business travel.
Canadian visitors contribute to accommodation, restaurants, retail stores, attractions and entertainment businesses across southeastern Michigan.
Reduced cross-border traffic can therefore affect tourism activity in communities that have traditionally benefited from frequent short-distance travel.
Recent reporting has identified a 35% decline in Canadian road travel to the United States compared with March 2024, illustrating the scale of the change at major crossings.
California Remains a Major Canadian Travel Destination
California does not share a land border with Canada, but Canadian visitors remain an important international market for the state.
California recorded 1.4 million Canadian visitors in 2025, making Canada its second-largest international visitor market. The state received 16.4 million international visitors overall and generated $25.4 billion in international visitor spending.
Los Angeles, San Francisco, San Diego, Anaheim and other destinations attract Canadian travellers through beaches, entertainment, national parks, cultural attractions and major events.
The state’s long-haul tourism model means that changes in Canadian air travel can affect hotels, attractions, restaurants and other visitor businesses.
Border Destinations Depend on Shorter Trips
Border tourism has a different structure from long-haul leisure travel.
Canadian visitors can cross into U.S. destinations for a single day, a weekend or several nights. Shopping, dining, sporting events, entertainment and family visits frequently form part of these shorter journeys.
When border crossings decline, businesses serving these visitors can lose high-frequency spending.
Statistics Canada reported that 41.1% of Canadian visits to the United States during the third quarter of 2025 were same-day trips, demonstrating the importance of short-distance cross-border travel.
Niagara and Other Border Markets Face Similar Changes
The effects extend beyond Michigan to other U.S. communities that depend on Canadian visitors.
Niagara Falls, New York, for example, is closely connected to Ontario tourism and benefits from visitors crossing between the two countries.
Border communities in New York, Vermont, Maine, Washington and other states also receive Canadian travellers for leisure, shopping and family-related trips.
The decline in Canadian travel therefore affects a wide geographic network rather than a single destination.
Hospitality Businesses Adjust to Changing Demand
Hotels, restaurants, retailers and attractions are among the businesses most directly exposed to international visitor fluctuations.
A reduction in Canadian overnight stays can affect hotel occupancy and visitor spending, while fewer same-day trips can reduce revenue for restaurants, shopping centres and attractions.
Tourism operators also monitor air travel because Canadian visitors arriving by plane contribute to major urban destinations such as Los Angeles and San Francisco.
The impact differs by market depending on how heavily individual destinations depend on Canadian visitors.
Canadian Travellers Are Choosing Other Destinations
Statistics Canada found that Canadian overseas travel increased in 2025 as U.S.-bound travel declined.
Canadian residents made 14.3 million trips that included an overseas visit, an increase of 10.2% from 2024. Spending on overseas visits reached C$31.3 billion, up 17.5%.
Europe, Mexico and Asian destinations have benefited from increased Canadian travel demand.
This creates greater competition for U.S. destinations seeking to maintain international visitor numbers.
Air Travel Shows Continued Weakness
The decline is also visible in aviation patterns.
Tourism Economics reported a 20.2% forecast decline in U.S. visitation from Canada and cited a 35.2% April decline in Canadian land visitors returning from the United States, alongside a 19.9% drop in air visitors.
For destinations such as California, air connectivity is particularly important because most Canadian visitors arrive through airports rather than road crossings.
California’s Wider Tourism Economy Remains Strong
Despite pressure from individual international markets, California’s overall tourism economy remains substantial.
Statewide travel spending reached a record $158.9 billion in 2025, with visitor spending increasing across 55 of California’s 58 counties.
The figures show that Canadian travel represents one component of a much broader tourism market that also includes Mexico, Europe, Asia and other international regions.
Border Travel Remains Important to North America
The U.S.-Canada tourism relationship is supported by extensive road, rail and air connections.
Major crossings facilitate millions of visits each year, while airports connect Canadian cities with U.S. leisure destinations.
Changes in travel demand can therefore influence businesses on both sides of the border, particularly where tourism depends on frequent short-distance visits.
What Travellers Should Know
Travellers planning U.S.-Canada trips should check current border requirements, transportation schedules and entry documentation before departure.
Those travelling by road should allow additional time for border processing, while air travellers should confirm flight schedules and airport requirements.
Tourism conditions can vary significantly between destinations, so local accommodation and attraction availability should also be checked before booking.
Key Stats
- Canadian trips to the U.S. in 2025: 23.1 million
- Annual decline: 23.5%
- U.S. visitor spending by Canadians: C$18.8 billion
- Decline in spending: 15.1%
- California international visitors in 2025: 16.4 million
- California Canadian visitors: 1.4 million
- California travel spending in 2025: $158.9 billion
Conclusion
California, Michigan and U.S.-Canada border tourism markets are navigating a sustained change in Canadian travel patterns as fewer Canadian residents visit the United States. The decline reached 23.5% for Canadian trips to the U.S. in 2025, while spending fell 15.1%. Michigan’s border communities are particularly exposed to reduced road travel, while California continues to attract substantial international demand despite weaker Canadian visitation. With Canadian travellers increasingly choosing domestic and overseas destinations, U.S. tourism businesses are facing a changing visitor market in which cross-border travel remains closely connected to broader economic and diplomatic conditions.
