During a visit to Las Vegas earlier this month, President Donald Trump emphasized the impacts of his federal tax changes for tipped workers, but he couldn't resist making remarks about Canada, a crucial market for the city. “Canada’s nasty, they are, they’re nasty,” he told attendees at the Red Rock Casino Resort and Spa.
These comments align with Trump's increasingly antagonistic approach toward Canada during his second term. Just three weeks later, relations between the U.S. and Canada have taken a turn for the worse, culminating in a trade dispute that shows no signs of thawing. After several failed negotiations, the U.S. imposed a hefty 50% tariff on approximately $20 billion worth of Canadian products over the weekend. In response, Canada announced its own tariff increases on American goods, set to take effect on September 8.
A statement from the White House asserted that “Canada has been ripping off the United States for decades,” emphasizing a long history of what it termed “clear and deliberate” abuse. In his counter-statement, Canadian Prime Minister Mark Carney acknowledged that the U.S. has changed and indicated that the previous relationship would not be reinstated.
Las Vegas stakeholders are closely monitoring the deteriorating relationship, especially as international travel to Harry Reid International Airport dropped 7% last year and is down an additional 9% in 2026 so far. Canada's two largest airlines, Air Canada and WestJet, experienced significant traffic declines, with Air Canada seeing a 22% reduction and WestJet reporting a 28% drop in 2025. As of July, Air Canada’s traffic is down by 13%, while WestJet's has dipped by 23%.
To combat the negative trends, Las Vegas stakeholders have actively sought to improve relations with Canadian visitors. Steve Hill, CEO of the Las Vegas Visitors and Convention Authority, has made multiple trips to Canada over the past year, and this month, he and Bill Hornbuckle, CEO of MGM Resorts, continued these efforts.
“Las Vegas loves you, we need you, the reason I’m sitting here is [because] we want you,” Hornbuckle expressed on the morning show Your Morning Vancouver on August 18. He emphasized the enduring importance of Canada as a top international destination for the region.
To attract Canadian visitors, three downtown Las Vegas casinos owned by Derek Stevens—Circa, The D, and Golden Gate—launched the “Vegas At Par” promotion, which offered promotional hotel and gaming rates for Canadian travelers by matching currency exchange rates. With the current exchange rate at $1 USD to $1.3 CAD, the promotion provided a substantial discount for those holding Canadian IDs. Stevens remarked on social media earlier this year that “Las Vegas misses Canada.”
Overall, Canadian travel to the U.S. fell by 25% in 2025, according to data from the Canadian government. In 2024, 39 million Canadians visited the U.S., but that number plummeted to 29.1 million in 2025, resulting in a $3.3 billion drop in Canadian spending in the U.S.
The report from statisticians Laura Presley and Carter McCormack noted that following the shift in U.S. administration in early 2025 and the roll-out of America First policies, Canadian travel sentiment changed drastically. By year-end 2025, two-thirds of all border crossings from abroad by Canadians to the U.S. were return trips.
As the second half of the year approaches, Las Vegas anticipates a busy period with holiday travel, including Labor Day, Halloween, Thanksgiving, Christmas, and New Year’s. The city also has a packed schedule of sports and special events, which have become significant draws, particularly during the fall and winter months. However, the escalating diplomatic tensions with Canada add an extra layer of pressure for success this year.
Hockey events could help stimulate Canadian tourism, as the Las Vegas Golden Knights are set to host five games against Canadian teams in the upcoming months, playing against the Toronto Maple Leafs, Calgary Flames, Ottawa Senators, Vancouver Canucks, and Montreal Canadiens.
Consultant Brendan Bussmann of B Global Advisors highlighted hockey fans as one of three major groups of Canadian travelers, along with business and leisure tourists. He pointed out that the relative recovery of Air Canada compared to WestJet indicates a rise in business travel, yet he remains hopeful about the Canadian market's long-term prospects.
“I think [Canada] will continue to play a significant role in the overall international mix, at least in the short-term,” he said, estimating that tourism will persist regardless of the current tensions, driven by interests in hockey, vacations, and various events in Las Vegas.
