More U.S. travellers are coming to Canada than the reverse. What does this mean for Canada and its economy?

Much like siblings, Canada and the U.S. seem to always be competing. Whether it’s during an international hockey game, comparing each country’s GDP or the natural beauty of our nations' lands, each country is always trying to one-up one another.

Now, in an intriguing reversal, Canadians have some new bragging rights. For the first time in years, Canada saw more Americans cross its borders than Canadians entering into the U.S., according to Statistics Canada’s recent release. The agency’s latest figures show that 1.8 million Americans came to Canada by automobile in July, where only 1.7 million Canadians drove to the U.S.

While it’s nice to have something to say we do better than the our southern neighbour (bringing more Americans to our soil), is this tourism role reversal good for the economy? What’s going on under the surface?

How American tourism affects the Canadian economy

American tourism is an important piece of the Canadian economy, so at first glance more Americans coming to Canada is a good thing. For instance, in 2024, TD Economics reported that $100 billion was spent on tourism related activities in Canada, with U.S. tourists spending $15 billion themselves — more than all other countries combined.

However, just because the ratio of Americans visiting Canada versus Canadians going to the U.S. has flipped, doesn’t mean that more Americans are coming to visit. In fact, TD expects a 5% to 10% decrease in U.S. spending in Canada, resulting in a drop of approximately $1 billion in tourism spending relative to last year.

StatCan reported that U.S. residents driving to Canada fell 7.4% in July from the previous month. Overall, international arrivals to Canada have fallen 15.6%, the agency noted.

Though the ratio has changed, less and less Americans are coming to Canada, which lowers demand on tourism and hurts the economy. But, that means even less Canadians are travelling south.

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Canada’s boycott of the U.S. — is it working?

It’s well documented that between Trump’s anti-Canadian rhetoric and the trade tensions between both countries, Canadians are not feeling welcome into the U.S. As a result, tourism to the U.S. has also taken a tumble.

StatCan reported that both airline and vehicle travel back to Canada from the U.S. has been trending downward. The number of Canadians returning from the U.S. via air fell 25.8% from July 2024 to July 2025. Automobile travels fared no better, with the number of Canadians returning from the U.S. by vehicle falling 36.9% from June to July of this year.

According to the Canadian Press, multiple states are seeing a major drop in Canadian tourism. Some key northeastern states have seen Canadian tourism drops of 20 to 60% compared to last year.

"We have seen impacts that you can't quite put a price on," Massachusetts Gov. Maura Healey told reporters.

How to explore Canada without emptying your wallet

Less tourists in Canada from the U.S. potentially means less demand for services. With that comes the possibility of lower prices — you can make your loonie go further travelling the Great White North. In fact, more Canadians are opting to travel domestically as a surge of national pride is felt from citizens coast to coast.

But, that doesn’t mean you can travel without a financial map. Here are some tips to help you explore Canada without breaking the bank.

• Save for the trip beforehand. You might decide to go on a weekend trip on a whim, but that doesn’t mean you simply pay for everything with a credit card. Save up for general travel expenses beforehand, preferably in a high-interest savings account so you can take advantage of compound interest.
• Use a travel credit card. Even if you aren’t a frequent Canadian flyer but like to travel somewhat often, a travel credit card can be a prudent way to lower your costs. Using credit card points for some or all of the trip can lessen your costs quickly. Many travel cards also come with impressive welcome bonus points you can use right away. Compare more than 140 cards in just 5 seconds.
• Research budget-friendly options. Commercial airlines aren’t the only ways to get across Canada’s rugged landscape. Driving can be a cheaper way to travel, and if you use Canada’s Discovery Pass, you can travel through our country’s beautiful national parks for substantially less.

Though tourism is weakening on both sides of the border, Canadians that are strategic about their travel spending will make the most of this dip in demand — without deterring them from their financial goals.

Sources

1. Statistics Canada: Leading indicator of international arrivals to Canada, July 2025 (Aug 11, 2025)

2. TD Economics: From Border Blues to Local Boom: Canada’s 2025 Tourism Spending Outlook, by Anusha Arif (Jun 26, 2025)

3. The Canadian Press: Drop in Canadian tourists hurting U.S., say northeast governors, by Hina Alam (Jun 16, 2025)