Arizona businesses feel impact of steep drop in visitors from Canada

Businesses in states like Arizona are feeling the impact of a steep drop in Canadians traveling the United States.

A new report issued by the Canadian government shows a 25% decline in travel by Canadians to the U.S. in 2025 compared to 2024. And that’s not because Canadians are traveling less, the report found.

“The reduction in travel to the United States in 2025 … was almost entirely offset by an increase in both domestic and overseas visits,” according to the report.

That’s concerning to Arizona’s business community.

“Canadian snowbirds in Arizona represent about $1.5 billion in direct annual spending,” says Danny Seiden, president and CEO of the Arizona Chamber of Commerce.

Seiden says it’s no mystery why Canadians are traveling to Arizona and other states less often. President Donald Trump’s anti-Canada rhetoric — from steep tariffs to threats of absorbing Canada as the “51st state” — have soured neighbors to the north on traveling to the U.S.

And for longtime snowbirds — Canadians who split time between their home country and Arizona — new alien registration requirements issued by the Department of Homeland Security, specifically for those remaining in the U.S. for 30 days or more, are turning Canadians who don’t want to deal with the hassle away.

“There’s just all this uncertainty of what that means for them,” Seiden said. “And you shouldn’t have to consult a lawyer before you travel to a country you’ve invested in and been friendly with.”

Seiden says businesses across the state are clearly impacted by a reduction in international travelers.

“They really are family. We all know the Canadian snowbirds in our neighborhood. We know what they mean to our economy,” he said. “You can talk to people in Yuma, which is a high-destination spot for snowbirds, and they’ll tell you their businesses are all down and they’re missing their Canadian friends.”