Across the United States, a concerning trend has emerged this summer: Canadian tourism, once a reliable economic engine for many American communities, is in sharp decline. From the border towns of Washington and Vermont to the glitzy lights of Las Vegas, businesses and local leaders are grappling with the fallout from a drop in visitors from north of the border. The reasons are complex, ranging from political tensions and tariffs to rising prices and border hassles, but the impact is being felt in store registers, hotel lobbies, and city streets from coast to coast.
In Bellingham, Washington, the absence of British Columbian shoppers has become impossible to ignore. According to a recent study by the Bellingham Regional Chamber of Commerce and the Border Policy Research Institute at Western Washington University, 50% of surveyed businesses reported that the drop in Canadian visitors was damaging their operations. Even more telling, 59% of small businesses in the area said they relied on Canadian customers to keep their doors open. Sasha Lysikov, owner of Minted Method, a boutique in Bellingham’s Fairhaven neighborhood, summed up the mood for Daily Hive: “In past years, we’d regularly see B.C. license plates parked outside the store, especially on weekends. This year, the number of B.C. plates is just a fraction of what we’ve seen in summers past. Our sales data reflected what we were seeing in real time.”
The numbers back up these anecdotes. Data from the Whatcom Council of Governments show that in July 2025, the volume of southbound vehicles from British Columbia to Washington dropped by 28% compared to July 2024. That marks the sixth consecutive month of decline, with some months down as much as 50% year-over-year. Guy Occhiogrosso, president and CEO of the Bellingham Chamber of Commerce, told Daily Hive, “Since February, when much of this trade war and political rhetoric (including 51st state comments) started, we have noticed each month we have been down compared to the same month last year. Sometimes that number was close to 50% down.”
Business owners point to a mix of factors for the downturn. Exchange rates, tariffs, and spending caps are frequently cited, but so too is the border crossing experience itself. Fear of secondary inspection, refusal of entry, and even the possibility of having electronic devices searched have made the trip south less appealing for many Canadians. U.S. Customs and Border Protection data reveal that between April and June 2025, 14,899 international travelers’ electronic devices were searched—a significant jump from previous quarters. As one Bellingham business owner put it, “Most of my customers avoid crossing the border because they fear being sent for secondary inspection and possibly refused entry. Another major reason is the high tariffs imposed on both sides.”
The ripple effects extend far beyond Washington. In Vermont, border crossings from Canada are at their lowest since 2021, according to U.S. Customs and Border Patrol data. July 2025 saw only 108,320 crossings from Canada into Vermont, a steep drop from 161,542 in July 2024. This decline began in early 2025, coinciding with stricter border regulations and higher tariffs enacted by the Trump administration. The trend is particularly acute in Vermont, where crossings have fallen below even 2022 levels, bucking the national trend in which other eastern states like Maine and New York have seen drops but remain above their 2022 numbers.
Local officials have scrambled to respond. Burlington, Vermont’s largest city, even temporarily renamed its popular Church Street to “Rue Canada” in a creative bid to woo back Canadian visitors. While the gesture made headlines, the hard truth remains that Vermont businesses are missing out on the influx of tourists that typically fill hotels, restaurants, and shops during the summer months. As USA Today Network’s Sydney P. Hakes reported, “Efforts like Rue Canada or the draw of leaf peeping season may assist in drawing more visitors, but Vermont businesses are missing out as a result of the reduced Canadian tourism.”
The story is much the same in Las Vegas, where the city’s famed hospitality sector is experiencing its first six-month consecutive decline in visitor numbers since early 2021. Hotel occupancy rates have fallen below 79%, average daily room rates have dipped under $190, and passenger traffic at the main airport has dropped by over 4% since the start of the year. Year-to-date, Las Vegas has welcomed more than 7% fewer visitors compared to 2024, totaling nearly 20 million so far in 2025, according to NewsNet5.
Industry experts point to high prices and rigid resort fees as key deterrents for travelers. A recent survey found that almost 90% of respondents believe Las Vegas is now too expensive for vacationers, echoing widespread frustration with the cost of accommodations, beverages, and surprise charges. Calls for a pause or reduction in resort fees have gained traction, with many arguing that the included amenities—like free local calls—offer little value to international visitors. The perception that Las Vegas is becoming prohibitively expensive is only compounded by reports of declining service quality.
For Las Vegas, the loss of Canadian tourists is particularly painful. Canadian passenger traffic to U.S. destinations, including Las Vegas, has dropped by 30% to over 60% compared to the previous year. Airlines have reported steep losses, and the city’s gaming and hospitality sectors are feeling the pinch. Political factors are also at play, with strained relations and tariffs between the U.S. and Canada, as well as controversial comments from former U.S. leadership, cited as reasons some Canadians are staying away. Since Canada has traditionally represented a major segment of Las Vegas’s international market, this decline is hitting especially hard.
Back in Bellingham, business owners are doing what they can to adapt. Sasha Lysikov of Minted Method has tried running promotions, cutting expenses, and expanding online. But without a rebound in foot traffic—especially from Canadians—the future of her storefront feels uncertain. “We’ve been doing everything we can to adapt, running promotions, cutting expenses, and expanding online, but without a rebound in foot traffic, especially from Canadians who have always been an important part of our customer base, the future of our storefront is uncertain,” she told Daily Hive. Lysikov’s message to her northern neighbors is heartfelt: “We miss you. Your visits mean more than you know, not just for the sales, but for the energy and connection you bring to our community. If it’s been a while since your last trip to Bellingham, I encourage you to come down, explore Fairhaven, shop small, and make a day of it. Every purchase you make at a local store truly matters. We’re ready to welcome you back with open arms. Supporting local businesses on both sides of the border helps keep our communities thriving.”
Guy Occhiogrosso, too, emphasizes the deep ties that bind border communities: “Our story is one of community, and for many of your readers, probably family. Many Canadians own property in Whatcom County, own businesses in Whatcom County, or choose to be here because they have family on either side of the border. I recognize why many Canadians are choosing not to shop right now, and I think it’s important to share that we warmly welcome you back when you are ready – whether that is next month or in three and a half years.”
As summer draws to a close, the hope among business owners and local leaders alike is that easing tensions, rethinking border policies, and perhaps a little neighborly outreach will help turn the tide. Until then, communities from Bellingham to Burlington to Las Vegas are left waiting, missing the familiar faces—and the vital dollars—of their Canadian friends.
