Beyond Borders coalition calls for policy clarity amid mounting economic headwinds

The Beyond Borders Tourism Coalition—a strategic alliance uniting key tourism, trade, and industry stakeholders across the United States and Canada—is sounding the alarm over a growing policy crisis that threatens to derail North America's travel recovery and long-term economic potential.

Against a backdrop of rising tariffs, new entry fees into the U.S., shrinking NGO and infrastructure funding, and increasing uncertainty at border crossings, the coalition is calling for immediate, coordinated action from policymakers.

Without urgent clarity and collaboration, they warn, both countries risk losing critical ground in one of their most economically vital sectors.

“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. 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 per cent in international visitor spending for 2025 alone,” said Terry Dale, president of the U.S. Tour Operators Association, in a press release Wednesday (July 30).

“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.”

“Millions of dollars in lost bookings”

Indeed, the stakes are high.

Prior to the pandemic, the North American tourism economy contributed approximately $2.5 trillion USD to GDP—roughly nine per cent of total output—and supported nearly 22 million jobs across the two countries.

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In the U.S. alone, the sector sustains close to 20 million jobs; in Canada, tourism accounts for 1.9 million.

But those gains are now in jeopardy.

“Thousands of jobs are on the line as these damaging tariffs disrupt the flow of tourists, drive up costs, and threaten our members’ livelihoods. 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 per cent in cross-border travel activity for 2025,” stated Jean Hébert, executive director of the Canadian Association of Tour Operators (CATO).

“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 cross-border visitor economy remains under pressure during what is typically the busiest travel season in North America.

• Steep decline in travel demand: Foreign tourist spending in the U.S. is projected to fall by 11% in 2025, translating to an $18 billion loss. Advanced air travel bookings between Canada and the U.S. have dropped by more than 70 per cent compared to the previous year, the coalition says.
• Warning signs in hospitality: Major hotel chains and tourism boards in key urban centers are anticipating a 6–7 per cent drop in international visitors, with economic uncertainty and policy challenges prompting many companies to lower revenue expectations, according to Bloomberg’s Hospitality Insights
• Rising consumer costs: Increased tariffs are pushing up prices on both sides of the border, squeezing discretionary travel budgets and dampening confidence among consumers and businesses alike, the group says.
• Local & Indigenous tourism at risk: Regional tourism programs, including Indigenous-led initiatives, are also being hit hard by declining visitation, leading to job losses and setbacks in cultural and economic development.

“Indigenous tourism is a vital bridge connecting communities, cultures, and economies across Canada and the United States. This sector creates opportunities for Indigenous entrepreneurs, fosters cultural revitalization, and delivers unique experiences that attract millions of travelers every year,” stated Keith Henry, president and CEO of the Indigenous Tourism Association (ITAC). “But the recent wave of tariffs and mounting political instability threatens all we have built. Rising costs and uncertainty hurt Indigenous-owned businesses disproportionately, putting jobs, livelihoods, and intergenerational knowledge at risk. To protect the promise of Indigenous tourism—for our communities and for future generations—our leaders must restore stable, open, and collaborative cross-border policies that allow Indigenous tourism to thrive.”

The Beyond Borders Tourism Coalition is calling on leaders in both the U.S. and Canada to put collaboration, open dialogue, and mutual transparency at the forefront.

“Divisive trade and fiscal policies need to be reassessed in favor of approaches that restore confidence and support the livelihoods of millions,” the group said.

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