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Mexico wins, the United States loses: The battle for Canadian tourism and the Trump effect

While Mexico records sustained growth in tourist arrivals from Canada, the United States faces a historic decline.
CANADA TOURISM MEXICO UNITED STATES CANVA
CANVA

While Mexico is experiencing sustained growth in arrivals from Canada, the United States is facing a historic decline — a shift that can be summed up in two words: Trump effect. According to official figures from Datatur, between January and May of this year, 1.6 million Canadian visitors arrived in Mexico, an increase of 11.6% compared to the same period last year. In contrast, data from Tourism Economics and the U.S. National Travel and Tourism Office reveal that Canadian tourism to the United States plummeted by 24% in the first half of the year.

This shift in tourist preferences is far from insignificant: Canadians make up one-quarter of all foreign visitors to the United States, meaning the economic impact of this drop is measured in billions of dollars.

ALSO READ. Trump threatens more tariffs on Canada! These products could see price increases in the United States

What are the favorite destinations for Canadian tourists in Mexico?

Mexico’s appeal for Canadian travelers is reflected in its most visited destinations. Cancún tops the list with 0.9 million tourists, followed by Puerto Vallarta with 0.3 million.

Overall, beach resorts remain the most visited Mexican destinations by foreign tourists. According to INEGI, the distribution of arrivals shows interesting trends in air travel: while Cancún saw a slight drop of -6.9% and Puerto Vallarta fell by -4.0%, Tulum experienced explosive growth of +191.4%, and Monterrey increased its arrivals by +20.5%. Conversely, Cozumel suffered a setback of -22.6%.

The growth in Tulum and decline in other destinations in Quintana Roo can be explained by the start of operations at the Tulum airport.

What factors explain the drop in Canadian tourism to the United States?

In 2024, Canadian tourists spent 20.5 billion dollars in the United States, but 2025 figures indicate a sharp decline. The U.S. Travel Association warns that for every 1% drop in international visitor spending, the country loses about 1.8 billion dollars in export revenue. If the trend continues, losses could exceed 21 billion dollars by the end of this year.

Analysts point to the Donald Trump factor as the main reason behind Canadians’ decision not to visit the United States.

How is international tourism performing in Mexico?

Beyond the Canadian case, international tourism in Mexico is maintaining a positive trend. According to the International Travelers Survey from INEGI, in June 2025 the country received 8.02 million international visitors, up 11.5% from 2024. Of these, 50.7% were international tourists and 49.3% were day-trippers.

Air travel accounted for 81.1% of inbound tourists, though it fell slightly by -2.8% year-on-year. Land arrivals grew by 15.1% and border tourism surged by 26%, with 1.79 million people.

What is the economic impact of tourism in Mexico?

The total spending by international visitors reached 2.7513 billion dollars in June 2025, an annual increase of 5.7%. However, the average spending per visitor dropped by -5.2%, settling at 343.06 dollars.

For inbound tourists, the average spending was 1,009.10 dollars, with air travelers spending more (1,171.51 dollars) than those arriving by land (310.91 dollars). Border tourists spent an average of 109.56 dollars.

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