Travelers Are Choosing Canada and the Caribbean Over the US

By Jean Genevieve

Updated October 2026

More international travelers are choosing Canada and the Caribbean over the United States in 2026. Statistics Canada reports Canadian trips to the US have fallen for more than a year in a row, while a strong US dollar, a near doubled US travel authorization fee, and Canada's low cost eTA and free park access are pointing budget minded travelers north and toward island destinations instead.

Key Takeaways

• Canadian resident return trips from the US fell 14.5% year over year in February 2026, the 14th straight month of decline reported by Statistics Canada, while US resident trips into Canada rose 5.9% that same month.

• The one time US ESTA authorization fee rose from $21 to $40 on September 30, 2025, compared with Canada's CAD $7 eTA, which stays valid for up to 5 years.

• The Canada Strong Pass returned June 19 to September 7, 2026, and its first year drove a 13% rise in Parks Canada visits and a 15% jump in national museum attendance.

• Caribbean performance is mixed heading into the rest of 2026: Dominican Republic hotel occupancy averaged 81.5% in the first half of the year, while Jamaica's tourism revenue fell 22.9% in Q1 after Hurricane Melissa closed hotels in the northwest.

Table of Contents

• Why Travelers Are Rethinking Their North American Trip

• The US Travel Slowdown, By the Numbers

• Canada Is Becoming the Default Alternative

• Why Canadians Are Staying Closer to Home

• Why International Visitors Are Choosing Canada Too

• The Caribbean's Uneven but Real Tourism Surge

• Entry Costs in Canada, the US and the Caribbean

• What the Travel Shift Means for Your Trip

• Balancing Tourism Growth With Sustainability

• Seasonal Planning: Canada and the Caribbean

• How to Book a Rental Car in Canada or the Caribbean

• Frequently Asked Questions

• Final Thoughts

Why Travelers Are Rethinking Their North American Trip

International travelers are pulling back from the United States because of currency pressure, higher entry costs, and mixed perceptions of safety and welcome, while Canada and the Caribbean generally offer simpler entry and stronger value in 2026.

If you have felt the travel world shift lately, longer questions at US airports, pricier flights, a hotel bill that stretches further in one country than another, you are not imagining it. Something structural is happening in North American tourism, and it is changing where people point their itinerary.

Travelers are not simply booking trips anymore. Many are actively comparing cost, ease of entry, and how welcome they expect to feel once they land. The United States, long the default choice for many international visitors, is losing some of that automatic pull. Canada and several Caribbean destinations are stepping into the gap, generally offering lower entry costs, calmer border processes, and, in Canada's case, a government backed push to get residents exploring their own country first.

At Final Rentals, we track these shifts because they change how, when, and where people need a rental car. Whether you are driving the Icefields Parkway in Alberta or a coastal road in Barbados, the right vehicle turns a good trip into a memorable one, so understanding the trend helps you plan smarter.

The US Travel Slowdown, By the Numbers

International visitor spending in the United States fell 2.4% in 2025 to about $175 billion and is projected to grow only 1.6% in 2026 to roughly $178 billion, according to the US Travel Association's Tourism Economics forecast, a total still about 18% below 2019 levels once adjusted for inflation.

Two forces are doing most of the work here. First, currency and cost. When the US dollar holds strong against currencies such as the euro, the pound, or the Canadian dollar, hotel stays, meals, and rental cars in US cities cost more for visitors converting from weaker currencies, even before any single price changes.

Second, the cost and experience of entering the country has become more visible to travelers. The one time ESTA fee that most Visa Waiver Program visitors pay before flying to the US nearly doubled, moving from $21 to $40 on September 30, 2025. Combined with widely shared reports of long immigration lines and unpredictable processing at some airports, this has added friction that a growing share of travelers now factor into their destination choice.

The 2026 FIFA World Cup, hosted in part across the US, is expected to give inbound numbers a temporary lift this year, but forecasters still expect a full recovery to 2019 visitor levels to take until closer to 2029. In other words, this is generally treated as a structural adjustment rather than a one season dip.

Canada Is Becoming the Default Alternative

Canada is absorbing a real share of travelers who once defaulted to the United States, helped by a much lower cost entry system, a government funded summer access program, and steady hotel demand growth through 2026.

Why Canadians Are Staying Closer to Home

Canadians themselves are driving much of this shift. Statistics Canada's Frontier Counts data, drawn from official border crossing records, shows Canadian resident return trips from the United States fell for the fourteenth consecutive month in February 2026, down 14.5% year over year, and down more than 31% compared with February 2024, before cross border tensions began. Meanwhile, US resident trips into Canada rose 5.9% that same month, the second consecutive monthly gain.

Separately, Longwoods International's July 2026 sentiment tracking found that just 37% of Canadian travelers now consider the US a safe place to visit, and 56% say current US policies make them less likely to travel there, though that figure has eased somewhat from 63% a year earlier. Industry commentary often describes this consumer mood as an elbows up or Buy Canadian sentiment, and it has coincided with roughly a 10% rise in domestic Canadian travel spending since early 2024, according to Bank of Canada tracking cited by travel researchers.

Why International Visitors Are Choosing Canada Too

It is not only Canadians filling Canadian hotels. From Vancouver's coastline to Toronto's downtown energy, from Quebec City's old town streets to Banff's mountain scenery, the country is drawing a broader international mix, and the government backed Canada Strong Pass is amplifying that. Running June 19 to September 7, 2026, the pass gives free admission to more than 40 national parks and over 170 national historic sites, plus reduced camping fees and discounted museum and VIA Rail travel. In its first year in 2025, the program drove a 13% increase in Parks Canada visits, a 15% average rise in national museum attendance, and a 6.5% increase in VIA Rail ridership.

Hotel data backs up the momentum. CoStar reported Canadian hotel occupancy at 78.9% in July 2026, up 1.6 points year over year, with average daily rate up 7.2% to CA$267.44 and revenue per available room up 9% to CA$211.01, with Quebec posting the strongest gains nationally.

For travelers who want to build a Rockies or Maritimes road trip around this, planning a route and a vehicle in advance matters more during the Strong Pass window because gateway towns fill quickly. A Canada car rental booked ahead, along with a look at how to drive in Canada, helps you avoid scrambling for a car once you land and arrange a Vancouver International Airport car rental or Toronto Pearson International Airport car rental.

The Caribbean's Uneven but Real Tourism Surge

Caribbean tourism is growing overall in 2026, but results vary sharply by island depending on hurricane recovery, airline capacity, and each destination's cost position relative to the United States.

The region as a whole is benefiting from the same currency and cost dynamics pulling travelers away from the US, but the picture is not uniform. According to ASONAHORES, the Dominican Republic's hotel association, national hotel occupancy reached 81.5% across the first half of 2026, up 2.5 points from a year earlier, with Punta Cana specifically averaging 88.2%. That kind of demand generally keeps package pricing competitive with, and often below, comparable US beach destinations once flights are included.

Jamaica tells a more complicated story. The Bank of Jamaica reported total visitor expenditure of about $974.5 million in the first quarter of 2026, down 22.9% from the same period in 2025, largely because Hurricane Melissa damaged hotels in the northwest of the island in late October 2025, and many of those properties are not expected to reopen until 2027. Even so, spending per stopover visitor actually rose 5.1%, suggesting the travelers who did arrive spent more once there.

Elsewhere, the Cayman Islands recorded a 48.9% jump in Canadian stopover arrivals in the first half of 2026 compared with the same period in 2025, a clear sign of Canadians redirecting winter and vacation budgets that once went south of the US border. Cuba is the clear exception to the region's growth story: Canadian carriers including Air Canada, WestJet, and Air Transat suspended Cuba routes in February 2026 due to an aviation fuel shortage, and Canadian arrivals to Cuba fell more than 70% in the first half of the year as a result, so travelers hoping to visit should confirm current flight availability before booking.

For a Caribbean trip built around these trends, having a car waiting is often what turns a resort stay into a real exploration of the island. Options such as a Dominican Republic car rental or a Jamaica car rental let you reach spots most package tourists never see, while getting around Jamaica becomes much easier when you understand the island's roads, routes and travel options.

Quick Facts: Entry Costs at a Glance, 2026

Entry rules vary by nationality and can change without notice. Always confirm current requirements with the relevant government website or your airline before booking.

What the Shift Means for Your Trip

For most travelers, the practical effect of this shift is more competition for rental cars and rooms in popular Canadian and Caribbean destinations during peak weeks, alongside genuinely better value once currency and entry fees are factored in.

In 2026, travelers are generally prioritizing value, ease of entry, and authentic experiences over brand name destinations, and that shows up directly in demand for self drive travel. A rental car removes dependence on someone else's schedule. You can chase sunrise at Peggy's Cove, stop at a roadside bakery outside Quebec City, or detour to a local festival in Saint Lucia without waiting on a tour bus.

Final Rentals has seen this shift firsthand in booking data: online reservations in Canada are up 42% year over year, and Caribbean bookings have grown 38% over the same period, with business trips, family reunions, and remote workers extending stays all contributing alongside leisure travelers.

Expert tip: If your Caribbean trip falls between June and November, build one flexible day into your itinerary and choose travel insurance that covers storm related delays, since a named storm elsewhere in the region can disrupt connecting flights even when your specific island stays dry.

Balancing Growth With Overtourism and Sustainability

Rising visitor numbers are creating real strain in a handful of popular spots, so choosing shoulder season dates and less crowded destinations generally benefits both travelers and local communities.

Popularity has a cost. Parking lots in Banff National Park often fill by mid morning during peak summer weeks. Coastal roads in Jamaica can back up during high season. Some Caribbean islands, including Barbados, face periodic water supply pressure tied partly to tourism demand. None of this means travelers should stay away, but it does mean timing and destination choice matter more than ever.

Final Rentals supports more sustainable travel through a few practical steps: offering fuel efficient and electric vehicles where available, partnering with rental providers that maintain and recycle equipment responsibly, and pointing travelers toward quieter alternatives, such as Cape Breton Island instead of only Niagara Falls, or Dominica instead of a fully booked beach resort. A trip built around local guesthouses, markets, and independent guides tends to put more money directly into the destinations people are visiting.

Seasonal Planning Snapshot: Canada and the Caribbean

Book Smarter: Renting a Car in Canada or the Caribbean in 2026

Booking a rental car ahead of peak windows, confirming insurance coverage, and checking documentation requirements early generally saves both money and stress once you land.

If you are planning a Canada road trip or a Caribbean island stay this year, a few practical steps help. Confirm whether you need an international driving permit for your destination, review what your policy actually covers before you decide whether to add rental car insurance, and check the minimum age to rent a car in the country you are visiting, since requirements differ from one destination to the next.

If you are heading into snow country, planning your winter road trips in Canada around road conditions and seasonal requirements can help you prepare before you book.

At Final Rentals, we work directly with local providers across more than 50 countries, which generally means instant online booking, transparent pricing with no hidden fees, 24 hour customer support in several languages, flexible pickup and drop off options, and a wide vehicle selection from compact cars to SUVs and hybrids. Whether you land in Vancouver, Toronto, Montreal, Kingston, Bridgetown, or Punta Cana, our local teams can usually point you toward scenic routes and practical shortcuts that a standard rental counter would not mention.

Frequently Asked Questions

Why are more international travelers skipping the US in 2026?

US international visitor spending fell 2.4% in 2025 to about $175 billion and is forecast to grow only 1.6% in 2026, according to the US Travel Association. A strong dollar, a $40 ESTA fee, and longer entry processing are pushing many travelers toward Canada and the Caribbean instead.

How does the cost of visiting Canada compare with the US in 2026?

Canada's eTA costs CAD $7 and lasts up to 5 years, versus a $40 ESTA valid for 2 years in the US. Canada also offers free national park access through the Strong Pass from June 19 to September 7, 2026, which can meaningfully lower a trip's total cost.

Do I need a visa to visit Canada as a tourist?

Most visa exempt travelers, including those from the UK, EU, and Australia, need an eTA before flying, applied for online for CAD $7 and usually approved within minutes. US citizens do not need an eTA to enter Canada by air.

Is Canada considered safer than the US by international travelers right now?

Recent sentiment surveys suggest a smaller share of Canadian travelers currently view the US as a safe destination compared with a few years ago, while Canada is often described by visitors as relaxed and easy to navigate. No destination is risk free, so travelers should still check current government travel advisories before departure.

Are flights to the Caribbean generally easier to process than US arrivals?

Many Caribbean airports, including smaller hubs in Jamaica and the Bahamas, tend to move arriving passengers through immigration faster than some larger US gateways during peak periods, though wait times vary by airport, airline schedule, and time of year.

Is the Caribbean safe for solo or female travelers?

Popular tourist zones in destinations such as Jamaica and the Bahamas generally maintain a visible tourism focused security presence, and resort areas are typically well monitored. As anywhere, sticking to known areas, using licensed transport, and staying aware of surroundings reduces risk.

Can I use US dollars in Canada and the Caribbean?

In Canada, US dollars are rarely accepted outside border areas, and paying in Canadian dollars or by card typically gets a better rate. Many Caribbean resorts, especially in Jamaica, the Bahamas, and the Dominican Republic, do accept US dollars, though local currency or card payment usually stretches further.

Is Cuba still a realistic option for Canadian travelers in 2026?

Travel to Cuba has become considerably harder for Canadians in 2026. Air Canada, WestJet, and Air Transat suspended Cuba routes in February 2026 due to an aviation fuel shortage, and Canadian arrivals fell sharply as a result, so travelers should confirm current flight availability directly with airlines before planning a trip.

What is hurricane season in the Caribbean and how should I plan around it?

Atlantic hurricane season runs June 1 to November 30. Storm risk and timing vary by island and by year, and recovery from a prior season's damage, as seen in parts of Jamaica after Hurricane Melissa, can affect hotel and rental availability well into the following year. Travel insurance covering storm delays is generally worth the cost during these months.

How can I avoid crowds in popular Canadian and Caribbean destinations?

Shoulder season travel, generally April to May or September to October, tends to bring lower prices and thinner crowds. In Canada, Atlantic provinces such as Newfoundland offer a quieter alternative to Banff, while in the Caribbean, Dominica and Grenada typically see far fewer visitors than Jamaica or the Bahamas.

Final Thoughts

Travel has not slowed down. It has redirected. In 2026, more travelers are weighing entry costs, currency value, and how welcome they expect to feel once they land, and Canada and the Caribbean are winning a larger share of that decision than they were even two years ago.

Wherever your trip takes you, from the Rockies to a coastal road in Barbados, having the right vehicle waiting makes the difference between a good trip and one worth remembering.

Final Rentals works directly with local providers in more than 50 countries, with transparent pricing, no hidden fees, and support available around the clock.

Ready to plan your next trip? Book your Canada car rental with Final Rentals for your Rockies or coastal getaway, or find affordable car rentals with Final Rentals for your next Caribbean escape.

Author Bio

Methodology and Sources

This update draws on primary and official sources reviewed in September 2026, including Statistics Canada's Frontier Counts border crossing data, the US Travel Association's Spring 2026 forecast produced with Tourism Economics, Longwoods International's Canadian travel sentiment tracking, CoStar's Canada hotel performance data for July 2026, ASONAHORES reporting for the Dominican Republic, the Bank of Jamaica's first quarter 2026 tourism expenditure report, and the Government of Canada's official pages for the eTA program and the Canada Strong Pass. Figures reflect the most recent full reporting period available for each source at the time of writing.

Where a country specific number could not be confirmed against an official source, the previous verified figure was kept rather than replaced with an estimate.