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NYC Hotels Feel the Pinch as Canadian Tourism Plummets

Canadian tourism to NYC plunges in 2025, threatening hotel revenues and broader hospitality sector recovery hopes.
Canadian tourism to NYC plunges in 2025, threatening hotel revenues and broader hospitality sector recovery hopes.
  • Canadian tourism to NYC is down sharply in early 2025, with city tour operators reporting business declines of up to 40%.
  • The Hotel Association of New York cites a 5–15% drop in Canadian bookings among its members over the past month.
  • Analysts link the downturn to US travel policies under President Trump and an unfavorable exchange rate for Canadians.
Key Takeaways

Canada has long been one of New York City’s top sources of international visitors—but that relationship is cooling off fast in 2025, according to The Real Deal.

Hotels, tour operators, and cross-border transportation companies are all reporting a steep falloff in Canadian business, threatening to dampen the city’s post-pandemic tourism recovery.

The Numbers Tell The Story

Canadian tourists brought $600M to NYC’s economy in 2024, second only to the UK in terms of foreign visitors. But by early 2025, that flow has slowed considerably. JFK saw a 30% drop in arrivals from Canada in February, with LaGuardia and Newark airports also reporting double-digit declines.

Ripple Effects

The slowdown is hitting all corners of the tourism economy. City tour operators report business is down between 20% and 40%. Hotel bookings from Canadian visitors have dropped 5–15% across 300 member hotels of the Hotel Association of New York City. “It’s hugely concerning,” said CEO Vijay Dandapani, noting the summer outlook remains uncertain.

What’s Driving The Decline?

Experts are pointing to a mix of political and economic headwinds. Recent travel policies under the Trump administration have strained international sentiment, while a strong US dollar continues to make trips south of the border less appealing to Canadians.

Cross-border vehicle traffic is down too. Great Canadian Holidays and Coaches, Canada’s largest motorcoach operator, reports a 90% drop in US trips. “Canadians still want to travel—they just don’t want to go over the border,” said company VP Michelle Tupman, who’s shifted focus to domestic Canadian routes for now.

Why It Matters

With Canadian visitors forming a critical part of New York’s international tourism base, the current trend poses a serious concern for a city that relies heavily on tourism dollars—especially as global competition for travelers heats up.

Looking Ahead

The coming months are crucial for NYC’s tourism rebound. Dandapani remains hopeful the dip could be partly due to shorter booking windows, but industry players are bracing for a potentially softer summer season if the Canadian travel pullback persists.

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