Can't Get Enough of Mexico: Canadians Fed Up With USA Politics Choose Sun and Fun South of the Border
Cross-border travelers tout Mexico as an alternative to U.S. amid increased border restrictions by Trump administration.
In the latest round of tariffs, Donald Trump spared Mexico, but his past tightened rules for imports from North America have left a sour taste in the economy. If goods aren't covered by the USMCA trade agreement, they're hit with a 25% tariff—a tough pill to swallow for many. But Mexico is reaping the benefits of Trump's chaotic trade policy as a tourist destination.
Political unrest is driving Canadians away from the USA, and they're finding their sun and fun fix in Mexico instead. According to the "Financial Times," the number of Canadian visitors has soared, leading some airlines to establish new flight routes to Mexico.
A Travel Trend to Watch: Mexican Vacation Boom
Mexico's tourism industry could benefit from this increased interest in the country as a tourist destination. Tourism comprises about 8.6% of Mexico's GDP, and with the economic impact of Trump's tariffs, the influx of Canadian tourists could help offset some of those challenges.
The relationship between Mexico and Canada has strengthened in recent months, with the Canadian government and travelers expressing their disapproval of Trump's tariffs and border policies. Mexico's Tourism Minister Rodríguez Zamora told the "Financial Times" that the current numbers suggest Canadians are choosing a friendlier destination over the USA.
Canadians have been boycotting American goods and travel since Trump's threats of annexation and high tariffs, and reports of harsh treatment of tourists upon entering the USA are deterring travelers. Even Mexicans are avoiding travel to the USA. The number of Mexican tourists flying to the USA in March 2025 was down by nearly a quarter compared to 2024, according to the US Commerce Department.
Mexico's Tourism Comes Back from the Dead
Mexico's tourism industry has been struggling, but the influx of Canadian tourists could serve as a much-needed boost. In 2023, tourism accounted for around 8.6% of Mexico's GDP, but the IMF recently forecast that Mexico will slip into a recession this year, in part due to Trump's tariffs. However, the recent surge in Canadian travelers offers some hope for a recovery.
Travel Statistics
- Canadian Arrivals in Mexico: In March 2025, Canadian arrivals in Mexico rose by 15.6% compared to the same month in 2024. This trend continued in the first quarter of 2025, with a 13% increase in Canadians flying to Mexico compared to the previous year.
- Accommodation Bookings: Airbnb reported a 27% increase in bookings by Canadians in Mexico between March 2024 and March 2025. In contrast, bookings in the USA decreased by 12%. Trivago noted a 20% increase in Canadian searches for accommodations in Mexico over the same period.
- Hotel Searches: Booking.com observed a significant increase in interest for Mexican cities, with a 49% surge in searches for hotels in Mexico City in April 2025 compared to the previous year.
Even though the specific impact of Trump's policies isn't directly mentioned, the broader context suggests that political tensions and policies have contributed to a general shift in travel preferences among Canadians, benefiting Mexico's tourism industry.
- The community policy of tariffs implemented by Donald Trump has spared Mexico but increased costs for many industries, particularly in manufacturing and transportation.
- If goods aren't covered by the USMCA trade agreement, they're subject to a 25% tariff, posing challenges for various industries.
- Mexico has become an attractive tourist destination as a result of political unrest in the USA, driving Canadians to seek sun and fun south of the border.
- The travel industry, particularly in Mexico, could see significant growth due to increased Canadian interest.
- The economic impact of Trump's tariffs has strengthened the relationship between Mexico and Canada.
- Mexico's Tourism Minister Rodríguez Zamora suggested that the increase in Canadian tourists indicates a preference for a friendlier destination.
- Canadians have been boycotting American goods and travel due to Trump's threats and harsh treatment of tourists.
- Even Mexicans have been avoiding travel to the USA, with a decrease in Mexican tourists flying to the USA in March 2025.
- Mexico's tourism industry has been struggling but could benefit from the influx of Canadian tourists, helping offset economic challenges.
- According to the IMF, Mexico is expected to slip into a recession this year, in part due to Trump's tariffs.
- Canadian arrivals in Mexico rose by 15.6% in March 2025 compared to the same month in 2024.
- Canadians accounted for a 13% increase in flights to Mexico in the first quarter of 2025 compared to the previous year.
- Airbnb reported a 27% increase in bookings by Canadians in Mexico between March 2024 and March 2025.
- Trivago noted a 20% increase in Canadian searches for accommodations in Mexico over the same period.
- Booking.com observed a 49% surge in searches for hotels in Mexico City in April 2025 compared to the previous year.
- The tourism industry comprises about 8.6% of Mexico's GDP, providing a significant contributor to the economy.
- Vocational training opportunities in the hospitality and tourism industries of Mexico may benefit from increased demand.
- Entrepreneurship in the tourism sector is likely to thrive with the growth of small businesses offering interior-design services for holiday rentals.
- The automotive industry may also profit from increased demand for car rentals and maintenance in Mexico due to the influx of tourists.
- Wealth-management services could cater to Canadians investing in Mexican real estate or businesses as a safe haven.
- Venture capital and private equity firms may see opportunities for investing in startups or mature companies in Mexico's tourism and hospitality sectors.
- Leadership roles in Mexico's tourism industry will become increasingly important as the sector grows.
- Diversity and inclusion efforts will be crucial to ensuring the growth of Mexico's tourism industry is inclusive of all people.
- Lifestyle and personal-growth opportunities abound for Canadians interested in learning about Mexico's culture, cuisine, and practices.
- Canadians seeking affordable housing options may find opportunities in Mexico's residential real estate market.
- Home-improvement businesses in Mexico may prosper from demand for renovations and property investments.
- Career-development opportunities across various sectors, including finance, energy, and aerospace, may also arise in Mexico as a result of increased economic activity.
- The housing market in Mexico may stabilize or even grow due to increased demand from Canadians seeking residency.
- Beyond tourism, ventures in banking and insurance, fintech, and online education could attract Canadian investors looking to expand their business interests.