Canadians Are Slowly Returning to the U.S., But Domestic Travel Remains Strong

Image:  (Photo Credit: Adobe Stock)
Image: (Photo Credit: Adobe Stock)
Natasha Lair
by Natasha Lair
Last updated: 9:15 AM ET, Mon October 19, 2026

New figures suggest cross-border travel is recovering, but Canadians are still choosing to explore closer to home, with domestic tourism spending on the rise.

After more than a year of declining travel to the United States, there are signs that Canadians are beginning to return south of the border. But while cross-border numbers are improving, domestic travel continues to play an important role in Canadians' vacation plans.

According to preliminary Statistics Canada figures released Oct. 13, Canadian residents made approximately 1.9 million return trips from the United States by automobile and air in September 2026, an increase of 6.8% compared to the same month last year.

Return trips by automobile increased 5.6%, while air travel rose 11.6%, marking the sixth consecutive month of year-over-year growth in Canadian return trips from the U.S.

The numbers remain well below levels recorded before the trade dispute intensified. Compared with September 2024, automobile trips were down 31.1%, while air travel remained 18.7% lower.

The figures suggest that while some Canadians are reconsidering travel to the U.S., a return to previous travel patterns is far from certain.

In a recent report by CTV News, Myranda Miller, a travel agent and branch manager with Halifax-based Maritime Travel, acknowledged the longstanding ties between the two countries.

“We are still connected with the U.S. and we are very close,” Miller told CTV News.

“People still have family in the United States that they want to go see,” she added.

The report also highlighted that not every Canadian crossing the U.S. border is necessarily vacationing there.

Dalhousie University professor Lorn Sheehan, who specializes in management and tourism destinations, pointed to Canadians travelling through American ports to board cruise ships.

“And so, we are counted as Canadians travelling through those U.S. ports as having entered their country, but our destination might really be a Caribbean vacation,” Sheehan told CTV News.

Canadians Continue to Explore Their Own Backyard

While some travellers are returning to the U.S., research suggests that domestic tourism has become an increasingly important part of Canadian travel habits.

A Business Development Bank of Canada (BDC) survey, released in May, found that 92% of Canadian travellers planned to take at least one trip within Canada in 2026, while 70% said they were avoiding travel to the U.S.

The survey found that Canadians were motivated by more than political considerations. Exploring different regions of the country was cited by 45% of respondents as a reason to travel domestically, while 39% pointed to supporting Canadian businesses and the economy.

Actual travel figures also indicate continued domestic demand.

According to Statistics Canada's National Travel Survey, Canadians made 69.1 million trips that included a domestic visit during the first quarter of 2026, up 2.3% compared with the same period in 2025.

Domestic tourism spending reached CAD$14.5 billion during those three months, an increase of 5.1% year over year.

Although overnight domestic visits declined slightly, by 1.2%, Canadians who stayed overnight spent more time away, with the average length of stay increasing 3.7%.

The economic implications are significant. BDC estimates that shifting just one overnight stay abroad to a day of travel within Canada could generate as much as $4.6 billion in additional GDP, without requiring Canadians to increase their overall travel spending.

The Bank of Canada has also identified a shift in travel spending as part of the broader Buy Canadian movement. In a February 2026 analysis, the central bank reported that Canadians made nearly 10 million fewer trips to the U.S. in 2025 than in 2024, a decline of approximately 25%.

The analysis found that Canadians had increased their spending on domestic travel while reducing spending on comparable U.S. services.

Americans Are Still Coming North

Americans continue to visit Canada in growing numbers.

Statistics Canada reported approximately 1.8 million trips to Canada by U.S. residents in September, up 17.2% compared with September 2025.

Automobile trips increased 19.5%, while air arrivals rose 12.2%. StatCan noted that the timing of the Labour Day weekend contributed to the year-over-year increase.

For Canadian tourism operators, the continued arrival of American visitors represents another source of demand.

Speaking with CTV News, Sean Buckland, CEO of Halifax-based Ambassatours Gray Line, said the exchange rate continues to work in Canada's favour.

What Does It Mean for Travel Advisors?

For Canadian travel advisors, the latest figures point to a market in which travellers are keeping their options open.

The gradual recovery in U.S. travel suggests that demand has not disappeared, particularly for family visits, cruise departures and other trips that require crossing the border.

At the same time, domestic destinations remain relevant, with Canadians expressing an interest in exploring their own country and supporting local tourism businesses.

The BDC research also found that affordability continues to influence travel decisions, with 81% of households expecting to make compromises when planning trips.

Those compromises vary by region, from shorter vacations in Quebec to more affordable accommodations in Ontario and greater flexibility around travel dates in British Columbia.

For advisors, the findings reinforce the value of offering clients a range of options, including Canadian destinations that may not previously have been part of their vacation plans.

The latest cross-border figures may signal a gradual easing of the U.S. travel boycott, but the growth in domestic tourism suggests that Canadians' changing travel habits extend beyond politics.

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