With winter now well underway, South Florida’s tourism industry is hoping for the return of Canadians to the Sunshine State. It must be said that due to a tense political climate, stricter border controls, higher travel insurance costs, and the impact of tariff wars, Canadian travel to the United States fell by 21% between January and September 2025, affecting hotels, restaurants, shops, and local attractions that depend on long, high-spending stays by snowbirds. But as reported by the Sun Sentinel, Florida entrepreneurs remain hopeful! They believe Canadians will continue to come to Florida, where they have family, homes, and retirement plans.
Richard Clavet of Richard’s Motel in Hollywood said early bookings for winter 2026 show a slight rebound among Canadians despite a rather difficult 2025 season. “We have good bookings for this winter,” he said. « This weekend [December 20-21, 2025], we received a lot of reservations. Hopefully, the situation will improve and they will forget about the tariff issues. »
While some travelers are turning to other countries, Palm Beach County is trying to rekindle interest among Canadians. And despite the decline, flights between Canada and Florida remain numerous, as recent data shows a slowdown in the decline. Tourism officials are therefore hoping for a gradual recovery, while Canadians remain important real estate buyers in Florida. According to Sylvia Cesaratto, Consul General of Canada in Miami, “We are also the leading foreign buyers of residential real estate. This is true not only for Florida, but for the United States as a whole,” she said.
CITIZENS REDUCES ITS RATES
Starting in July 2026, Florida’s public insurer, Citizens Property Insurance, plans to lower its premiums with an average reduction of 2.6% statewide and up to 11% for single-family homes in South Florida. These reductions are the result of legislative reforms in 2022 and 2023, which limited lawsuits and reduced reinsurance costs, and several private insurers are also announcing reductions, subject to regulatory approval.
In fact, the law requires policyholders to leave Citizens if a private company offers a premium that is less than 20% higher. In 2025, twelve insurers withdrew more than 416,000 policies from Citizens, the majority of which did not meet this threshold.
Citizens, which wants to reduce its portfolio to 385,000 policies, could, however, regain customers if private insurers do not follow suit.
THE U.S. VS. FLORIDA ECONOMY
In the third quarter of 2025, the U.S. economy grew by 4.3%, driven by consumption, government spending, and exports. While this performance exceeded expectations, inflation remained high, with the PCE (Personal Consumption Expenditures Price Index) at 2.8% and core inflation at 2.9%, complicating the possibility of a rate cut by the US Federal Reserve. And despite strong GDP growth, markets declined, reflecting doubts about monetary easing. Consumption and public spending rose by 3.5% and 2.2% respectively, while private investment declined slightly. The labor market also showed a decline, with unemployment at 4.6% and job creation down.
In Florida, the economy continued to create jobs in the third quarter of 2025, particularly in the healthcare, hospitality and leisure, and professional services sectors. Despite rising living costs for residents, the Sunshine State maintains its status as a major global economy thanks to tourism and migration.
