Beyond Borders Tourism Coalition says “Historic Uncertainty” Gripping Cross-Border Travel

The Beyond Borders Tourism Coalition, an alliance of U.S. and Canadian tourism, trade, and association stakeholders, says “historic uncertainty” is hurting cross-border travel. The group is making a call for urgent policy clarity and coordinated action.

The coalition says the combined effects of tariffs, funding cuts, new fees to enter the United States, and uncertainty at border crossings are undermining recovery, deterring new investment, and reducing opportunities for cultural and economic exchange. 

“Rising tariffs and economic headwinds are cutting into consumer purchasing power, reducing demand for U.S. vacations, and forcing our members to reconsider future investment and hiring,” says Terry Dale, President, US Tour Operators Association.

“The economic impact has been immediate and measurable — USTOA members are already reporting millions of dollars in lost bookings and revenue, with some projecting a decline of up to 11% in international visitor spending for 2025 alone.” 

Dale added: “These losses translate to cutbacks in operations, workforce reductions, and missed opportunities for communities nationwide. The ripple effects across our sector are deeply concerning, underscoring the urgent need for clear, stable policies that support a thriving U.S. travel economy.”

It’s not just U.S.-based companies being hurt.

“Thousands of jobs are on the line as these damaging tariffs disrupt the flow of tourists, drive up costs, and threaten our members’ livelihoods,” said Jean Hébert, Executive Director, Canadian Association of Tour Operators (CATO). 

“The economic toll is immediate: Canadian tour operators are facing millions of dollars in lost bookings and mounting operational costs, with some businesses reporting declines of over 70% in cross-border travel activity for 2025. If decisive action isn’t taken, our communities will feel an economic impact that could take years to reverse as tourism-dependent businesses struggle to survive and local economies miss out on vital revenue.” 

The Beyond Borders Tourism Coalition identified earlier this year that proactive, collaborative approaches are needed to reverse these trends and restore confidence in an industry that in the past contributed approximately $2.5 trillion USD to North America’s GDP, making up nine percent of total economic output.  In the US, tourism supports close to 20 million jobs while in Canada 1.9 million jobs are attributed to the visitor economy.   

The negative impacts on the visitor economy on both sides of the border continue through what is traditionally tourism’s busiest season across North America.   

Plummeting Travel Bookings: Foreign tourist spending in the U.S. is forecasted to drop by 11% in 2025, an $18 billion loss. Advanced air bookings between Canada and the U.S. have fallen significantly year-over-year.

Hospitality Warning Signs: Major hotel chains and urban tourism boards are bracing for sharp declines (as much as 6-7% in some cities) in international visitation owing to economic and policy headwinds, with companies adjusting revenue forecasts downward.  

Consumer Impacts: Tariffs are driving the cost of goods higher on both sides of the border, eroding discretionary travel budgets and undermining consumer and business confidence in travel planning. 

Regional & Indigenous Impact: Community initiatives and Indigenous-led tourism are being threatened by reduced travel, job cuts, and cultural setbacks.

The Adventure Travel Trade Association’s (ATTA) CEO Shannon Stowell stated:  “The ATTA’s recent global survey makes it clear: political instability and uncertain government policies are being sharply felt across the adventure travel sector. Our research shows that 93% of U.S. operators and 89% of their international counterparts anticipate negative impacts for at least the next year.” 

Stowell said the greatest challenge is uncertainty, especially around finances, safety, and the potential for sudden policy changes that disrupt travel plans and business confidence. “As an industry, we must continue to adapt, but lasting resilience will require stronger support, greater policy clarity, and a renewed commitment to cross-border collaboration.” 

All members of the Beyond Borders Tourism Coalition are urging policymakers in Canada and the U.S. to prioritize negotiation, transparency, and cross-border cooperation over protectionist measures. The group says divisive trade and fiscal policies need to be reassessed in favour of approaches that restore confidence and support the livelihoods of millions.