Las Vegas, New Hampshire, and the Jersey Shore have long been magnets for Canadian tourists, but this summer, the welcome mats look a little dustier than usual. From the neon-lit Strip to the sandy beaches of Cape May County, destinations across the United States are grappling with a sharp decline in visitors from their northern neighbor—a trend that’s sending ripples through local economies and prompting a rethinking of how to attract international guests.
In July 2025, Las Vegas saw a dramatic 12% drop in visitation compared to the previous year, translating to around 420,000 fewer people exploring the city’s casinos, shows, and restaurants, according to new data released by the Las Vegas Convention and Visitors Authority (LVCVA) and reported by the Las Vegas Sun. The city’s main gateway, Harry Reid International Airport, registered a 5.7% decline in passenger numbers for the month. But the numbers tell an even starker story for domestic travelers, who dropped by 5.9%, compared to a 3.8% dip in international arrivals.
Steve Hill, president and CEO of the LVCVA, didn’t mince words when discussing the downturn: “Las Vegas is going through a downturn,” he told reporters, though he quickly added that he remains “confident in the future of this city.” While gaming revenue in Clark County has continued to keep pace with last year—offering a glimmer of hope for the state’s budget—the city’s broader hospitality sector is feeling the pinch.
The LVCVA attributes much of the decline to “evolving federal policies” and a new breed of “value-conscious travelers” who are rethinking their spending amid economic uncertainty. Among the most controversial policy changes: a refundable $250 “visa integrity fee” passed under the Republican-led “Big Beautiful Bill.” For a family of four from a country not covered by the United States’ Visa Waiver Program, that extra charge can be a deal-breaker. Hill was blunt in his assessment, saying the fee is “enough to deter them from coming.”
It’s not just Vegas feeling the chill. In New Hampshire, exports to Canada plummeted 42.6% by June 2025 compared to the same period in 2024, according to the U.S. Census Bureau’s Foreign Trade Bureau. The state’s Department of Business and Economic Affairs has been closely monitoring the fallout. “But with something like a 40% drop, that does make you look,” said Adam Boltik, program manager of the department’s Office of International Commerce, in an interview with the New Hampshire Bulletin. While the department can’t say with certainty that tariffs are the sole culprit—supply chain shifts may also be at play—the timing is hard to ignore.
The trade war between Washington and Ottawa has been anything but predictable. In March, the U.S. imposed a 25% tariff on Canadian steel and aluminum, prompting Canada to retaliate with its own tariffs on American goods. Then, in late August, Canadian Prime Minister Mark Carney pledged to remove most—though not all—of those counter-tariffs by September 1, 2025, in an effort to cool tensions. Still, the uncertainty has rattled businesses on both sides of the border. “Our economies are so intertwined that we’re still looking to do business and work with companies and folk in New England,” said René Sylvestre, Québec’s delegate to New England.
Tourism, however, has been hit even harder than trade. The number of Canadian visitors to New Hampshire dropped around 30% this year, according to BEA Commissioner Taylor Caswell. The reasons are manifold: economic anxieties, animosity toward the United States, and fears of trouble at the border. “It’s really a perfect storm,” Sylvestre observed. The downturn is visible on the ground. Janet Wall, a Madbury Democrat, noted that beachside parking lots on the Seacoast—usually packed with Québec license plates—are noticeably emptier. Business owners have reported a “huge decline” in Canadian visitors.
South Jersey’s iconic shore towns haven’t escaped the trend. “Cape May County’s Department of Tourism projects that Canadian visitation will be down between 20% and 30% compared to past years,” confirmed Tracey DuFault, executive director of the Greater Wildwoods Chamber of Commerce, in a statement reported by NorthJersey.com. The region, famous for its boardwalks and family-friendly beaches, has been forced to adjust its tourism strategies to make up for the shortfall. Local leaders are quick to link the decline to both economic and political factors, including policies enacted under President Donald Trump.
Indeed, the Trump administration’s approach to trade and immigration has had a ripple effect across the tourism sector. Besides the visa integrity fee, Trump’s executive order ending the “de minimus” tariff exception for imports valued at $800 or less took effect on August 29, 2025. This change means that goods previously exempt from tariffs are now taxed—a move that could prompt Canada to retaliate with tariffs on small-dollar American imports. “There may be enough of an outcry from those Canadian producers and small businesses that Canada does something,” Boltik warned.
International travel from Canada to Las Vegas has been especially hard-hit, with an 18% decline in visitors this year, even as travel from Mexico and the United Kingdom increased by 9%. Recognizing the importance of Canadian tourists, Steve Hill and representatives from local hotels traveled to Vancouver in late August for a sales mission. “A portion of our friends in Canada are not happy with us right now,” Hill acknowledged. “We want them to come back, but we understand they may not be ready to do that.”
To sweeten the deal, Las Vegas has rolled out new travel packages with Air Canada and WestJet. While it’s early days, both airlines have reported that the new deals are “working,” Hill said. “Our message to (Canadians) is, ‘We’re here. The city continues to improve, continues to create new experiences for you,’” he added. “We’re ready when you’re ready. We’re not going to be able to talk them out of their principles.”
Back east, New Hampshire is taking a proactive approach as well. In early September, the state will host a trade mission with Canadian and American business leaders, culminating in a reception in Quebec City with Governor Kelly Ayotte. The goal: to reassure partners that, despite the turbulence, “the Granite State is still open for business.”
Despite the tough headlines, some see reasons for optimism. The United States-Mexico-Canada Agreement (USMCA), passed during Trump’s first term, continues to shield a broad array of products from tariffs, helping to preserve many cross-border business relationships. “Pretty much most of our products are under the USMCA,” Sylvestre noted. And while tourism numbers are down, the deep-rooted ties between communities on both sides of the border remain resilient. “I see this as one corridor,” he said. “Even though it’s two countries, there are so many things that we’re doing together.”
For now, though, the numbers don’t lie: Canadian tourism is down, and the economic impact is being felt from the Las Vegas Strip to the Jersey Shore. Whether through new travel packages, trade missions, or simply waiting out the policy storm, American destinations are hoping to lure back their northern neighbors—one visitor at a time.
