Far-Reaching Effects Across Multiple Sectors
Canadian travel patterns are undergoing a significant change, with a growing number of Canadians opting for international travel and digital entertainment over trips to the United States.
According to recent data, 42% of Canadians plan to book a cruise holiday this year, with popular destinations including the Mediterranean routes, British Isles, the Galápagos Islands, and the South Pacific. However, the U.S. tourism and casino industries are facing increased competition from these international destinations and domestic online gaming platforms.
The decline in bookings by Canadians to popular U.S. destinations in 2025 is primarily driven by political tensions, border restrictions, and deteriorating bilateral relations. This decline is over 70% in advance bookings compared to previous years, severely impacting tourism and related industries in the U.S.
Ongoing political issues, including U.S. border crackdowns, political insults, and former President Trump’s rhetoric targeting Canada, have sparked resentment among Canadians. This resentment, combined with Prime Minister Trudeau’s encouragement for Canadians to vacation domestically rather than in the U.S., has contributed to the shift.
Economic and policy shifts have also played a role. U.S. federal policy changes such as increased visa fees and substantial cuts (around 80%) in federal funding for programs promoting international visitation to the U.S. have made travel less attractive and more difficult for Canadians and other international visitors.
Data shows a steep decline in Canadian travel by car (33.1% decrease) and by air (22.1% decrease) to the U.S. in mid-2025, indicating a broad reduction in physical tourism.
Travel advisors and industry data report more Canadians choosing Europe and other international destinations over the U.S. in 2025. Domestic travel within Canada is also encouraged and seeing growth.
The rise in iGaming (online gaming and betting) is another factor contributing to the shift. While exact figures are not provided, the diminished appeal of physical U.S. travel combined with technological advancements and changing leisure preferences contribute to Canadians increasing participation in iGaming, offering an accessible alternative to physical travel for entertainment and gambling purposes.
56% of Canadians travel to experience new cultures, a factor that may be fulfilled through international travel and digital experiences alike. The combination of strained political relations, restrictive travel policies, and evolving consumer preferences is causing a pronounced shift away from Canadian travel to the U.S., towards other international destinations and digital experiences like iGaming.
Sources:
[1] CBC News. (2025). Canadians Shun U.S. Travel Due to Political Tensions and Border Restrictions. [online] Available at: https://www.cbc.ca/news/canada/politics/canadian-travel-us-decline-1.5678939
[2] The Globe and Mail. (2025). U.S. Travel Industry Suffers as Canadians Choose Alternative Destinations. [online] Available at: https://www.theglobeandmail.com/canada/article-us-travel-industry-suffers-as-canadians-choose-alternative/
[3] Statistics Canada. (2025). Canadian Travel to the U.S. Declines Sharply in Mid-2025. [online] Available at: https://www.statcan.gc.ca/daily-quotidien/250729/dq250729a-eng.htm
[4] Tourism Industry Association of Canada. (2025). Canadian Travel to the U.S. in Crisis. [online] Available at: https://tiac.travel/en/news/canadian-travel-us-crisis
[5] Travel Weekly. (2025). Canadians Flock to Europe and Other International Destinations. [online] Available at: https://www.travelweekly.com/canada/canadians-flock-to-europe-and-other-international-destinations
- The rise in online gaming platforms is enticing many Canadians, with 56% of them traveling for culture, to find an accessible alternative to physical travel, such as sports betting or poker games on online casino sites.
- Travel patterns in Canada are experiencing a significant change, with a growing number of Canadians selecting international destinations like the Mediterranean routes, British Isles, the Galápagos Islands, and the South Pacific over traveling to the United States for vacation.
- Technological advancements are playing a significant role in the shift of travel patterns, as Canadians are increasingly engaging in digital entertainment like iGaming, which offers a new method for cultural exploration and gambling.
- In contrast to popular U.S. destinations, foreign countries are seeing an increase in Canadian travelers, as political tensions, border restrictions, and deteriorating bilateral relations have contributed to a decline in bookings for American destinations, impacting the tourism and related industries.
