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Detroit City Wire

Friday, September 12, 2025

Michigan businesses face challenges as Canadian tourists stay away

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Sandy K. Baruah President and Chief Executive Officer at Detroit Regional Chamber | Official website

Sandy K. Baruah President and Chief Executive Officer at Detroit Regional Chamber | Official website

Michigan businesses are preparing for a summer without the usual influx of Canadian tourists. The decline in Canadian visitors is attributed to President Donald Trump's tariffs and his comments about annexation, which have upset many Canadians.

Pete Hoekstra, the new U.S. Ambassador to Canada, described Trump's rhetoric as "a sign of affection," stating, "That may be the first time that America has extended an offer to someone else to become part of the country." Despite this perspective, travel from Canada to the U.S. has decreased significantly. Statistics Canada reports a 35% drop in car trips and a 20% decrease in flights by Canadians into the U.S., with border crossings at their lowest since the 2020 pandemic.

Michigan Governor Gretchen Whitmer expressed concern over these developments, emphasizing Michigan's close ties with Canada: "We know that Canadians are our friends, they’re our extended relatives in many cases, in many families," she said. She criticized Trump's tariff policies, noting their impact on tourism: "The chaos on the Trump tariff talk is palpable."

Canadians contribute over $360 million annually to Michigan's economy through tourism, making up about 10% of the state's total tourism revenue. Brian Calley, CEO of the Small Business Association of Michigan, acknowledged that while summer is crucial for local businesses, early bookings remain strong despite concerns about reduced Canadian tourism.

Michel Soucisse from El Moore lodge in Detroit noted that border towns feel the impact first: "None of these small businesses asked for this... Everyone’s seeing a slowdown." He reported a 15% drop in travel compared to previous years due to cancellations from regular Canadian guests.

Sandy Levine, owner of two renowned Detroit restaurants, observed fewer Canadian visitors: "A large amount of people have come to Detroit because they heard really good things about it... but it’s not nearly to the degree that it was maybe like six months ago or a year ago."

Robert Chambers from Windermere Hotel on Mackinac Island also reported cancellations from regular Canadian guests: "Unfortunately... they contacted us and said they wouldn’t be able to make it to the States this year."

Ambassador Hoekstra suggested that current tensions might be temporary: “The Canadians are... acting on emotion.” However, Soucisse believes his fellow Quebecois do not want statehood and have been candid about their reasons for canceling visits.

With ongoing trade disputes and political tensions under Trump's administration affecting international relations and travel patterns, it's uncertain when normalcy will return for Michigan's tourism industry still recovering from past challenges.

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