Hospitality and tourism are a vital part of Minnesota’s economy, but there’s fear tariffs will take a toll as the state heads into its busy season.
Between now and Labor Day, hospitality and tourism typically bring in more than $24 billion to the state each year.
A large portion of that impact comes from international travelers, but with an ongoing trade war, there’s fear that could change.
According to Explore Minnesota, more than 567,000 international tourists visited the state in 2023, spending a little over half a billion dollars.
The agency was forecasting 700,000 international visitors this year, but that’s looking less likely because Canadian tourism into the U.S. is down. More than half of Minnesota’s international tourists are from Canada.
Minnesota Sen. Amy Klobuchar is concerned with this shift and met with Canada’s prime minister recently in a bipartisan effort to change trends.
“Our message to the Canadians is we love you, we want you to come to our country, we understand why you’re pissed off, we’re pissed off, too, and however we want to work this out,” Klobuchar said. “We’re going to continue to work on this and hope to come to an agreement in the next few weeks. Otherwise we’re going to have a tough tourism season.”
Klobuchar added the state is seeing a 70% dropoff in canceled vacations, particularly in northern Minnesota.
Border crossings from Canada are down 18%.
The 25% tariff on Canadian goods remains in place, as does Canada’s reciprocal tariff on the U.S.
