Saturday, May 24, 2025

Political tensions, tariff disputes, and safety concerns surrounding US travel have led to a sharp decline in cross-border trips by Canadian tourists in 2025. Instead of venturing south, travelers are choosing domestic destinations like Winnipeg, Moose Jaw, and Newfoundland, where tourism campaigns, a favorable exchange rate, and a renewed appreciation for local culture are fueling a nationwide surge in staycations and regional exploration.

As political tensions and tariff disputes between the US and Canada continue to escalate, many Canadians are opting to stay within their own borders for travel in 2025. Cities and small towns alike are experiencing a significant surge in domestic tourism, with local operators reporting record bookings, increased ferry traffic, and robust interest in off-the-beaten-path destinations.

This redirection of travel intent — away from traditional cross-border vacations in the US — is reshaping Canada’s tourism landscape. Families that once drove south for holidays are now heading to places like Drumheller, Bathurst, Moose Jaw, and the rugged coastlines of Newfoundland and Labrador. Meanwhile, cities such as Winnipeg are using strategic and humorous branding to attract attention to their often-overlooked travel appeal.

A combination of unpredictable trade policies and aggressive rhetoric from U.S. leadership has discouraged many Canadians from making their usual trips south of the border. Political uncertainty, annexation threats, and a heightened sense of unease have collectively triggered a notable decline in Canadian travel to the U.S., for both business and leisure purposes.

Travel experts report that Canadians are increasingly “afraid to go to the U.S.” due to safety concerns and broader geopolitical instability. This trend is supported by a visible drop in cross-border traffic and a measurable increase in domestic tourism expenditures.

In New Brunswick, the town of Bathurst exemplifies the shifting dynamics of Canadian tourism. Local accommodation providers are reporting full bookings far earlier in the year than usual. Properties that typically expect high occupancy in late summer are now fully reserved by June, a reflection of growing Canadian interest in exploring their own country.

This uptick is transforming the economic outlook for small towns that traditionally play second fiddle to major cities. By embracing their cultural authenticity, regional attractions, and natural beauty, these communities are capturing a larger share of the national tourism market.

Across Canada, destinations are capitalizing on the new wave of stay-at-home tourism by launching inventive, locally-themed marketing campaigns. Winnipeg’s latest branding initiative paints the city as “Canada’s middle child,” a nod to its central geography and underdog status in national conversations.

The campaign includes an endearing mascot named “Winnie Fred,” shaped like the city’s borders, which appears on promotional materials and billboards. This tongue-in-cheek approach is resonating with Canadians looking for lighthearted and unique travel experiences that celebrate homegrown charm.

Similarly, Newfoundland and Labrador’s tourism authority is balancing iconic imagery such as icebergs with stories of small-town hospitality and community heritage. By showcasing local characters and their ties to the land, the province is encouraging visitors to explore more than just the postcard-perfect sights.

Tourism campaigns in Newfoundland and Labrador are already delivering quantifiable results. Marine Atlantic, the ferry operator connecting Nova Scotia to the west coast of Newfoundland, has reported 7,000 more bookings compared to the same period last year. This surge underscores not only increased domestic interest but also heightened mobility between Canadian provinces.

Ferry services — traditionally dependent on seasonal spikes — are now experiencing extended peak seasons. Analysts suggest that Canadian tourists are taking advantage of the lower Canadian dollar to travel more extensively within the country.

In Saskatchewan, the city of Moose Jaw is also making headlines for its cheeky tourism push. The campaign, which draws attention to the city’s legendary underground tunnels rumored to have once sheltered Prohibition-era gangsters, is turning heads both at home and abroad.

With a growing interest among Canadians and a stable base of American visitors, Moose Jaw is strategically balancing its cultural heritage with cross-border appeal. The city’s tourism economy is robust, generating over $130 million in 2024, including $18 million from U.S. tourists alone.

Officials note a recent uptick in domestic travelers, many of whom are rediscovering Canadian destinations once dismissed as too quiet or remote. Moose Jaw’s ability to blend storytelling with economic development serves as a blueprint for other towns looking to thrive in this new tourism climate.

Tourism operators in Atlantic Canada are also witnessing a significant revival. Ambassatours Grey Line, a major provider of sightseeing and cruise experiences across the Maritimes, reports a 40% jump in overall business compared to last year.

Canadian travelers top the list of new bookings, followed by European tourists and then Americans. The trend is largely attributed to the Canadian dollar’s weakness, which makes domestic travel more affordable for residents while increasing value for international visitors.

Ambassatours also notes an increase in travel confidence among Canadians seeking new experiences within familiar territory. Cruises, coastal excursions, and regional sightseeing tours are emerging as preferred alternatives to long-haul or cross-border flights.

Canada’s evolving travel habits are producing tangible economic results across various provinces. While major cities continue to draw significant visitor numbers, the real growth is occurring in regional and rural areas where tourism was once a secondary consideration.

This decentralization of tourism revenue is spreading economic benefits more equitably across the country. Towns like Moose Jaw, Bathurst, and ferry-served communities in Newfoundland are seeing enhanced hotel occupancy, increased demand for local services, and growing employment opportunities tied to tourism.

Moreover, provincial tourism boards are doubling down on regional campaigns that spotlight local businesses, promote lesser-known attractions, and connect visitors to authentic cultural experiences — all while keeping tourism dollars circulating within Canada.

Beyond economics, Canadians are motivated by more than just affordability or convenience. The decision to avoid U.S. travel in 2025 is deeply tied to political psychology. Warnings over trade tensions, immigration policy shifts, and civil unrest in the U.S. have left many Canadians feeling uneasy about venturing across the border.

The rise in questions from American tourists to Canadian tour operators — some concerning safety and politics — underscores the climate of caution that now defines cross-border travel discussions. As this wariness grows, more Canadians are expected to choose staycations or intra-provincial trips.

As travel patterns shift across the country, Canada is entering a new era of homegrown tourism focused on regional discovery. Households are planning road trips along scenic provincial routes, while younger travelers are seeking out hidden cultural treasures in lesser-known towns. At the same time, tourism promoters are revitalizing their strategies by showcasing uniquely Canadian narratives, destinations, and heritage experiences.

Rising geopolitical tensions and heightened safety concerns have led many Canadians to reconsider travel plans to the United States, sparking a growing preference for domestic holidays. Cities such as Winnipeg, Moose Jaw, and Newfoundland are benefiting from this shift, as travelers seek out familiar, secure, and inviting experiences at home. This trend is further propelled by targeted regional marketing efforts and the added affordability brought on by a weaker Canadian dollar.

Industry insiders believe that this trend toward domestic rediscovery will continue, even if U.S. relations stabilize in the future. Canadian pride, affordability, and a newfound appreciation for local adventure may permanently reshape how the country travels.

In 2025, domestic tourism across Canada is undergoing a powerful revival, fueled by growing political instability abroad, favorable economic conditions at home, and innovative promotional efforts. As more Canadians reconsider travel to the U.S., smaller communities and under-the-radar regions are stepping up with genuine local experiences, inventive destination branding, and strengthened tourism infrastructure to attract this shifting wave of travelers.

From the prairie charm of Moose Jaw to the coastal magic of Newfoundland and Labrador, Canadian destinations are proving that you don’t need to cross an international border to find unforgettable travel experiences.