Bermuda, Curaçao, Naples, and Lisbon Beyond Surging Canadian Summer Travel Redefines Global Tourism Routes as the US Sees a Sharp Decline in Popularity Here’s All You Need to Know

Canadians Steer Away from U.S. Travel Amid Political Strains

In 2025, a noticeable shift in travel behavior has taken place among Canadian tourists, as political rhetoric and economic friction between Canada and the United States have led many to reconsider where they spend their vacation dollars. Historically the largest group of foreign visitors to the U.S., Canadians are now opting to explore destinations beyond their southern neighbor. This development signals not just a cooling of cross-border tourism, but a broader realignment in global travel patterns.

Rising Interest in Caribbean and European Getaways

With diplomatic tensions simmering, Canadian travelers are broadening their horizons, turning their attention to warmer, more welcoming destinations. The Caribbean has emerged as a clear favorite, with flight searches to the region increasing by 22% compared to last year. Several island nations have reported a surge in Canadian visitors.

The standout performer is Bermuda, which witnessed a 34% jump in Canadian tourist arrivals during the first quarter of 2025. Other Caribbean hotspots like Curaçao (+14.1%), Cayman Islands (+8.5%), Anguilla (+7.4%), Barbados (+2.4%), and Aruba (+1.8%) are also enjoying steady growth.

This trend appears set to continue throughout the summer. Notably, flight searches for British Virgin Islands and Saint Kitts and Nevis have skyrocketed—by 124% and 92% respectively—signaling that Canadians are ready to diversify their travel experiences in a big way.

Europe is benefiting as well. Cities in Southern Italy—like Palermo and Naples—are drawing increased attention, with interest climbing over 72% from the previous year. Classic European favorites such as Paris, Rome, Lisbon, and London remain high on travelers’ lists, while farther-flung destinations like Tanzania and Morocco have seen search volumes surge by 103% and 43%, respectively.

Tourism in the U.S. Feels the Loss

This decline in Canadian visitors is more than just a diplomatic side effect—it’s having real economic consequences for the U.S. tourism sector. In 2024, Canadian tourists made 20.4 million trips to the U.S., contributing $20.5 billion in tourism revenue and sustaining an estimated 140,000 jobs.

With travel from Canada to the U.S. down by 10%, the impact could be significant. That decline alone would translate to 2 million fewer visits, resulting in a projected $2.1 billion loss in tourism revenue and up to 14,000 lost jobs. The hardest hit are regions that have historically relied heavily on Canadian footfall—Florida, California, and Nevada in particular, where shopping and hospitality businesses are seeing a sharp drop in customer traffic.

Flight Paths Are Changing

Airlines are quickly adjusting to match new demand patterns. Air Canada has expanded its service to the Caribbean, boosting non-stop flights to destinations like Punta Cana, Cancun, Nassau, and Montego Bay, all popular among Canadian sunseekers. At the same time, it’s cutting back service to a number of U.S. cities.

European routes are also seeing growth. Flights from Montreal and Toronto to places like Porto, Naples, and Edinburgh are on the rise. Airlines are realigning their offerings to tap into this shift in interest—focusing on places where travel demand is soaring and stepping away from routes where it’s clearly cooling off.

Canada Itself Becomes a Destination

While international travel habits are changing, many Canadians are also choosing to stay closer to home. Domestic travel is gaining momentum, with more people exploring Canada’s national parks, heritage sites, and scenic routes.

Government campaigns promoting local tourism and supporting small businesses have helped encourage this movement. The boost in internal tourism is helping to balance out the outbound travel dip and inject fresh life into local economies.

What This Means for the Global Travel Landscape

This redirection of Canadian travel dollars is more than a temporary response; it could shape global travel trends for years to come. Countries that are seeing an uptick in Canadian arrivals are likely to double down on their marketing and hospitality strategies to retain and grow this new interest.

Conversely, U.S. destinations that previously counted on consistent Canadian tourism may need to reinvent their appeal or diversify their visitor base. With political dynamics playing an increasingly visible role in travel decisions, tourism boards worldwide must stay alert and flexible.

The travel industry is being reminded, once again, that tourism is not immune to geopolitics. As travelers factor diplomacy and economics into their vacation plans, destinations that stay open, affordable, and genuinely welcoming are set to benefit.

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