International tourist arrivals fell by 10.9% in February 2025, a significant drop compared to the previous year. At the same time, the number of American tourists also recorded a decrease of 10.6%. This trend is worrying for the Canadian tourism industry, which is an important part of the economy.
According to Statcan, there are several reasons behind this decline. The main reason for this is the trade tensions between the United States and Canada and the tariff policies of US President Donald Trump. Trump’s decision to impose a 25% tariff on Canadian goods and controversial statements such as making Canada the ’51st US state’ have created insecurity in the minds of Canadian and American citizens. As a result, many American tourists have also affected the Canadian tourism industry.
Canada’s tourism industry generated $109.5 billion in revenue in 2023, but the decline in tourist numbers is affecting local businesses, especially in border areas. According to StatCan data, the number of American tourists in March 2025 decreased by 17.4% compared to the previous year. This has led to a 40-50% drop in revenue for restaurants, shops and hotels in border cities.