Lauren Feather
Jul 7, 2025
Some states are paying more than others
20 million Canadian tourists visited the United States in 2024; they spent a whopping $20.5 billion and supported around 140,000 American jobs, according to the U.S. Travel Association. These figures make Canada, America's friendliest ally, the single largest source of tourism in the United States. Moreover, these stats indicate that 50% of Canadians visited the U.S. last year, since the population is approximately 40 million. Given that the United States had around 77 million tourists, the numbers also show that Canada represented 26% of America's tourists. That's a lot of Canadian visitors, but this year, they're boycotting (for reasons the news isn't letting us forget).
It's no secret that Canadians are boycotting the U.S. as a tourist destination, instead taking their tourism dollars elsewhere. Some states are paying for the Canadian boycott of the U.S. more than others. However, not only is Canada starving America of what should be its biggest chunk of tourism revenue in 2025, but it's also enjoying what looks to be a takeover of the USA's other would-be international visitors, particularly big spenders over in Europe, if a recent study is anything to go by.
Recent data from the World Travel and Tourism Council (WTTC) shows the U.S. tourism sector is floundering with lost revenue in the billions of dollars, while a new study from Context Research Group unveils where international travelers, particularly Europeans, are interested in visiting instead. Yes, a surprising Canadian destination is "stealing" America's big-spending tourists—though not necessarily on purpose. America is doing that all by itself. But why, and how? Who are these spender travelers avoiding America for a taste of Canada? Plus, how much is this all costing the U.S.?
President Trump's remarks about Canada becoming the 51st U.S. state, tariffs and constant threats of tariffs on countries all around the world, and concerns from European nations regarding the detainment of European tourists at the Mexico and Canada borders are sparking fear and general distaste towards America from tourists—and not just Canadians. Just as thousands of Canadians have been canceling their American trips in protest over soiled relations with their North American neighbor, it seems travelers from other countries around the world, especially wealthy nations in Europe, are doing the same.
In fact, data from the World Travel and Tourism Council (WTTC) suggests that the only country among 184 globally to experience a decline in international tourist spending in 2025 is none other than the United States.
How Much Is The Loss Of International Tourists Costing The U.S. In 2025?
The USA is on a slippery slope, hurtling toward a $12.5 billion loss in international visitor spending for 2025. The most recent Economic Impact Research from the WTTC and Oxford Economics discovered that international visitor spending to the U.S. is expected to fall to just under $169 billion in 2025, a total down significantly from $181 billion in 2024. This shortfall is a 22.5% decline compared to the previous peak—and officials in America's tourism industry are worried.
Speaking in an interview on CNBC's Squawk Box in April 2025 (seen in the YouTube video above), CEO of the U.S. Travel Association, Geoff Freeman, said the $50 billion travel trade surplus that the United States experienced a decade ago has now shifted into a $50 billion deficit, representing a huge $100 billion reversal that's likely to worsen. But why is America's tourism and travel situation so dire, and why does it threaten to get even worse? The WTTC connects this massive decline in visitors (and thus tourism revenue) to mounting global tariffs, stricter visa processes, and a general perception of a United States that is hostile, unwelcoming, and unfriendly to foreigners—a perception that travelers from Europe and developing nations seem to be noticing the most.
"This is a wake-up call for the U.S. government," Julia Simpson, the WTTC's CEO, declared in the council's statement. "The world's biggest travel and tourism economy is heading in the wrong direction, not because of a lack of demand but because of a failure to act. While other nations are rolling out the welcome mat, the U.S. government is putting up the 'closed' sign," she continued.
The organization also stated "The U.S. is welcoming fewer visitors from its neighbors and countries further afield, which is a clear indicator that the global appeal of the U.S. is slipping." It added that the downturn will affect "communities, jobs and businesses from coast to coast."
Americans' Domestic Tourism Is High—But That's A Weakness, According To The WTTC
The WTTC also explained that almost 90% of all tourism spending in the U.S. in 2024 resulted from domestic travel, as Americans are vacationing at home in record numbers (turns out, Americans might also be boycotting Canada, as the latter recently saw a drop in U.S. tourists). But the council explained that this surge in domestic tourism is actually not entirely a good thing; it said "homegrown tourism is masking a serious vulnerability: The international market is where the real growth lies, and the U.S. is losing its crown."
So, it would seem that the loss of international visitors is only one side of the USA's fall from grace as a prominent tourist magnet and top destination for trade, business, and culture; when combined with the fact that Americans' outbound travel is soaring, and more U.S. citizens are opting for domestic travel, it shows that the United States' its losing revenue and its global appeal. The WTTC warned that such an imbalance impacts local economies, employment, and America's overall legacy.
"Today, that legacy is under threat," the council said. "WTTC is calling for immediate action to address travel access, rebuild international marketing efforts and restore global traveler confidence in the U.S.," it continued.
In response to the WTTC's damning report, U.S. Travel explained it is "paying close attention to visitation data." It continued, stating, "With major global events like the FIFA World Cup, America's 250th anniversary, and the Olympics on the horizon, with the right focus and welcoming message from the president, we can fully realize the economic and diplomatic opportunities they present."
But as those major events get closer, a new study by Context Research Group (CRG) shows that hope for an upturn in international tourism in time for these spectacles may just be that—hope. Where do big-spending tourists want to go instead of the U.S.? CRG's survey reveals all—and it's a surprising spot in Canada that's winning international visitors' hearts, particularly those from major European nations.
European Travelers Are Skipping The U.S. For A Surprising Canadian Destination
Canada is becoming the vacation destination of choice for travelers coming from Europe’s big players: the United Kingdom, France, Germany, and the Netherlands. But where exactly in Canada has caught their attention? As American tourism stagnates, a new Europe Pulse Study by Context Research Group (CRG) on behalf of Destination Ontario and Destination Toronto shows that over half of these European leisure travelers are considering a trip to Ontario over the next two years, with a major desire to visit Toronto, an upcoming FIFA World Cup host city.
The research uncovers how global events are changing tourists' perceptions of certain destinations (i.e., like how different Canada is from the United States), and where Ontario can tweak its international tourism marketing to match traveler sentiment.
Ontario, it would seem, ticks the right boxes, with Toronto being a place of key interest for European jet-setters as it gets ready to host the FIFA World Cup 2026; almost a third of surveyed travelers specifically exhibited interest in visiting Ontario's capital of Toronto for the World Cup. Furthermore, candidates also view Canada as a safe, inclusive, welcoming, and overall exciting destination, which, when compared to the United States' global perception in recent months, is a stark contrast.
Other Key Study Results:
54% of travelers from Germany, the UK, and France are likely to consider a leisure trip to Ontario in the next two years
50% of the above are considering visiting Toronto
92% of travelers from the U.K., France, and Germany are aware of Ontario as a destination
87% say Canada is appealing to visit on its own and not solely part of a North American vacation
62% of travelers agree the current political climate in the U.S. makes them less likely to visit
In light of the cost to America's economy and global reputation, along with CRG's study findings that prove Canada (more specifically, Ontario) is taking the USA's European tourists, one important question appears—one that the U.S. would do well to reflect on if it's ever to win international tourists' favor and get its tourism numbers back to previous years. That question is: why exactly are travelers, especially big-spending tourists, like the British, Germans, French, and Dutch, ditching the United States?
Why European Travelers Are Snubbing The U.S. For Canada
It's no surprise that, at a time when dozens upon dozens of countries are issuing travel warnings for the U.S., Europeans and other international visitors are thinking twice about vacationing in America. The reasons for these travel warnings aren't too dissimilar to those behind Europeans' decline in visits—and their preference for a more positively viewed Canada instead.
Soaring fears of political unrest, expensive and tightened visa regulations, tariffs and tariff threats, the potential for deportation and denied entry, and a hostile environment in the U.S. are pushing international tourists into the safer and welcoming arms of Canada instead. Ontario is especially enjoying the shift towards Canadian travel because it promises what global visitors, namely Europeans, desire from a North American trip: natural beauty, cosmopolitan cities, a welcoming environment, and, now, the appeal of the 2026 FIFA World Cup.
Beautiful historic buildings and architecture in Ottawa, Canada
Safety is another crucial criterion European travelers want, which Canada is synonymous with when compared to the U.S. 62% of the European travelers surveyed claimed they were hesitant to visit the USA because of political and societal tensions; meanwhile, Canada exudes a stable, inclusive, safe, and less controversial image.
Ontario and Toronto are even overtaking traditionally popular long-haul destinations like Japan and Australia.
Within Ontario, there's an abundance of things to do and places to see that Europeans find compelling. Iconic cities like Toronto and Ottawa offer all of what European travelers want most, and then some: think beautiful nature escapes, cultural diversity, rich culinary scenes, historical landmarks, and friendly faces.
Moreover, in European tourists' eyes, Ontario offers the full North American travel experience without the caveats, risks, hassles, and complications they could face when traveling to the United States. If America is to win back its tourists from Ontario and even the rest of Canada, especially Europeans, it's clear it has a ton of work to do in restoring its image on the global stage and repairing relationships with other countries whose inhabitants once dreamed of experiencing the "American Dream" on vacation for themselves. Until then, Europeans have spoken; they're taking their tourism dollars to Canada instead—with Ontario being an evidently winning destination.