The impacts of a trade war and strained foreign relations, particularly with Canada, introduce uncertainty to western Montana’s tourism industry.
By Justin Franz MONTANA FREE PRESS
It started slowly.
Earlier this year, Diane Medler, executive director of the Kalispell Chamber of Commerce, also known as Discover Kalispell, said that the organization began to notice an increase in people unsubscribing from their email newsletter, mainly from Canada. Sometimes, a message would explain why: We no longer plan to visit Kalispell or the Flathead Valley due to the ongoing tensions between the United States and Canada.
But as the scope of President Donald Trump’s trade war with Canada and other long-time allies has expanded, the impact on visitation to Montana — a cornerstone industry in places like the Flathead Valley — is now coming into focus with declining border crossings and increasing hotel cancellations.
For years, Canada has been one of the most significant sources of visitors to northwest Montana. The bond between the Flathead Valley and Alberta was so tight that many Canadians purchased second homes there. The COVID-19 pandemic and the extended border closure changed all that, but Medler said visitation had been slowly returning to its pre-pandemic levels. Discover Kalispell tracks credit card spending data in the Kalispell area to see where visitors are coming from. From 2023 to 2024, Canadian spending in Kalispell increased by 10.8%.
However, earlier this year, Trump imposed stiff tariffs on the United States’ northern neighbor — as well as others — and offered that Canada should join the U.S. as the “51st state.” In January, Canadian spending in Kalispell dropped 13% compared to the same period last year, and the following month it fell 36%, according to the Kalispell chamber.
At Roosville, the border crossing north of Eureka and the closest major port to the Flathead, passenger vehicles coming south were up 11% in January compared to the same month last year. However, those trips decreased by 14.8% in February and 26% in March.
Hotel bookings have also taken a hit. Across the state, hotel bookings by Canadians have dropped by 71%, according to data provided by Medler. She also said that hotels in the Kalispell area reported that some Canadian youth sports teams planning to compete at tournaments in the Flathead Valley have also canceled their reservations.
Canadian tourists have made up a smaller piece of the visitation pie in recent years, following the tourism boom in the Flathead during and after the pandemic. According to Western Montana’s Glacier Country, before the pandemic, Canadians made up about 14% of visitors to Montana; following COVID-19, it’s been about 8%.
However, Medler said Canadian visitors often spend significantly more than others, even compared to those from other parts of the United States. Besides hotels and restaurants, Canadians have traditionally liked to make major purchases in the U.S. when the exchange rate is in their favor or hit the box stores in Kalispell for groceries, clothing and other items.
Nationally, the U.S. Travel Association has warned that the drop in Canadian visitation could have a major impact on the tourism industry. Canada has long been the top source of international visitors to the United States, with 20.4 million visits in 2024, generating $20.5 billion in spending and supporting 140,000 American jobs. Even a 10% drop in Canadian visitation could result in $2.1 billion in lost spending and the loss of 14,000 jobs.
But Medler said the Canadians contribute more than just money; they also contribute to the community. She said she’s concerned that the personal connections between the Flathead and Canada, already frayed by the pandemic border shutdown, will fray even further amid tensions between the two countries’ governments.
“Montana and Alberta have been so close for so long; we share the world’s first international peace park,” she said, referring to the Waterton-Glacier International Peace Park established in 1932. “Canadians don’t feel like they’re from a different country. They feel like neighbors.”
Racene Friede, CEO of Western Montana’s Glacier Country, said that from Jan. 1 to mid-April, inquiries to their website and call center in Missoula from individuals outside the United States, not just Canada, decreased by 29%.
Friede said the Trump administration’s actions are impacting Montana’s hospitality industry in other ways, too. She said several hotels and conference centers in the state have reported an increase in cancellations because federal employees are having to cancel trips for conferences due to budget cuts.
Despite the loss of Canadian travelers and other economic uncertainties, Friede said she remains “cautiously optimistic” that Montana’s tourism industry will have another strong year and that domestic travelers will make up for the decline of international visitors. That could still change.
“It’s a year of unknowns,” she said.
Rob Ratkowski, airport director for Glaicer Park International Airport, said he’s anticipating a flat summer travel season with numbers on par with last year. He said the airlines that fly in and out of Kalispell have not altered their plans for the upcoming travel season due to changing trends, and traffic was actually up 13% between January and March. Ratkowski said the number of passengers coming and going through Glacier Park International during the shoulder season has increased dramatically in recent years, something he attributes to the Flathead Valley’s growing population.
