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"There's a lot of hesitation around travelling to the U.S.," said Amra Durakovic, head of communications at Flight Centre Travel Group Canada.

Political tension over Trump's tariffs, changing immigration and border policies, and a lousy exchange rate as the loonie trades around 72 cents US are continuing to discourage many ºÃÉ«tvs from travelling stateside, she said.

"Being uncertain whether or not you'll be stopped at the border, I think, just creates a lot of stress," she said. "Let's face it, a vacation is meant to be stress-free."

ºÃÉ«tv-resident return trips from the U.S. by car dropped 30.2 per cent to 1.6 million in October, while the number of return trips by air dropped 15.1 per cent compared with the same month a year earlier, the StatCan data showed.

Instead, ºÃÉ«tvs were choosing destinations further abroad for their vacations. 

ºÃÉ«tv residents returning from overseas totalled 998,197 in October, up from 914,950 in October 2024.

Airlines such as Air Canada and WestJet have been expanding their services to more destinations in Europe, South America and Asia as travellers look for options outside of the U.S.

"(ºÃÉ«tv travellers') confidence has eroded when it comes to U.S. travel, but they're definitely exploring more widely," Durakovic said.

ºÃÉ«tvs were also looking for destinations where the exchange rate was more in their favour, she added.

Meanwhile, the number of trips to Canada by U.S. residents in October totalled 1,814,406, up three per cent compared with 1,760,987 the same month last year.

Durakovic said the exchange rate is likely a big factor. 

The number of trips to Canada by overseas residents in October totalled 548,992, up 11.7 per cent from 491,296 a year ago.

Arrivals from Europe rose 10.5 per cent compared with a year ago, while arrivals from Asia gained 14.9 per cent. 

This report by ºÃÉ«tvwas first published Dec. 22, 2025.