Fewer Canadians head south, prompting advisors to adapt as new travel and investment patterns emerge
A sharp decline in Canadian travel to the United States is reshaping tourism economics and cross-border advisory priorities, as political tensions and generational shifts drive Canadians to reconsider their southern migration.
According to preliminary data from Statistics Canada, the number of Canadians returning by car from the US fell to 1.4 million in October—a 30.5 percent drop from the same period in 2024—while air travel declined by 24 percent.
This marks the tenth consecutive month of lower volumes, a trend that began after US President Donald Trump’s election, as reported by BNN Bloomberg.
The US Travel Association forecasts a 3.2 percent drop in international tourism spending for 2025, representing a loss of US$5.7bn, with significantly fewer visits from Canada as the main driver, according to CBC News.
The association also projects a travel trade deficit of nearly US$70bn, as more Americans travel abroad than international tourists visit the US.
Usha Haley, a management professor at Wichita State University, warns that this drop threatens thousands of tourism jobs and could impact municipal finances through reduced hotel occupancy and tax collection, as cited by CBC News.
In response, US states and tourism groups have launched campaigns to woo back Canadians.
For example, Discover Kalispell in Montana introduced a Canadian Welcome Pass, offering discounts at local businesses after reporting a 39 percent year-over-year decline in international credit card spending, according to CBC News.
California expects Canadian visitor spending to fall from US$3.7bn in 2024 to US$3bn this year, prompting new marketing efforts, as reported by BNN Bloomberg.
Alternative destinations are gaining appeal for Canadians.
More than 964,000 Canadians flew back from overseas in October, a year-over-year increase of nearly seven percent, according to Statistics Canada and reported by BNN Bloomberg.
An Angus Reid poll found that 70 percent of Canadians surveyed would be uncomfortable travelling to the US this winter, citing a desire to stand up for Canada, concerns about the US political climate, and heightened border security, as reported by CBC News.
Within the cross-border advisory profession, these trends are driving a shift in client needs.
Wealth Professional reports that Gerry Scott, creator of the Snowbirds US Day Tracker app and a cross-border wealth advisor, observes that some reports of Canadians abandoning US properties may be overstated.
He notes that the snowbird generation is being “squeezed” by political issues and rising real estate costs.
Scott notes a generational change: younger Canadians are less interested in the traditional snowbird lifestyle, preferring adventure and experiences over maintaining a retirement split between two locations.
He highlights that demand for cross-border advice remains strong, especially for Canadians working in the US and managing complex tax and investment needs, but the industry’s growth is currently limited by the capacity of cross-border accountants.
