Why would the Canadian side be getting killed? Of course those factors aren't advantageous, but the Canadian side is the main tourist side. It has a larger tourist area, and even if tackier, has more attractions, and is more invested in. That's the side people want to see. Ontarians and foreign tourists visit the city as well, and plenty of Americans aren't fazed by passport requirements. The hotel is probably being built knowing that Niagara Falls is a stable destination which will continue to draw more people in the future.