Sharp Drop in Foreign Visitors Affects US Tourism Sector
Washington, D.C., Monday, 1 September 2025.
In 2025, the US saw a decline of over 3 million international visitors due to restrictive policies, impacting tourism-reliant economies.
Impact on Key Travel Destinations
The downturn in international tourism has notably affected popular U.S. travel destinations such as Las Vegas and Los Angeles. A report highlights a significant decline in international arrivals, with particular reductions seen from Western Europe, Asia, and Africa, leading to an overall decrease of 3.1% in July 2025 alone [1][2]. Los Angeles reported a stark 49% decrease in tourism revenue, attributed to compounded factors including misinformation about wildfires and immigration protests [2].
Canadian Travelers and Economic Implications
Perhaps most notable is the downturn in Canadian visitors, traditionally a significant source of U.S. tourism revenue. In 2025, visits from Canada dropped by 25.2% year-to-date, with a sharp 37% decline in car travel as of July [1][3]. This decrease is largely attributed to negative perceptions stemming from U.S. policy and political rhetoric, as cited by 80% of Canadian travelers [3]. This trend jeopardizes many local economies, particularly in states like New York and Washington, where Canadian tourists greatly influence spending [4].
Economic Ramifications
Economic experts forecast severe financial repercussions as the U.S. grapples with declining international visitors. The World Travel & Tourism Council projects a $12.5 billion reduction in international visitor spending for 2025, marking the U.S. as the only country among 184 studied to see a downturn in visitor expenditure [1]. Concurrently, travel research firm Tourism Economics revised its estimate, now predicting an 8.2% overall decline in international arrivals, amidst previous expectations of growth [2].
Future Outlook and Policy Considerations
The U.S. faces an uphill battle in reversing these negative trends, as upcoming policy changes threaten to exacerbate the situation. For instance, the introduction of a $250 visa integrity fee, set to take effect in October, is poised to further deter prospective visitors, arguably making the U.S. one of the most expensive countries to enter globally [5]. While some domestic travel destinations like Door County in Wisconsin remain robust, the overall international outlook remains grim unless policies shift towards a more welcoming stance [1].