Published on
September 4, 2025
In 2025, the US tourism industry is experiencing an unprecedented slowdown, with Canada joining the ranks of the UK, Spain, Brazil, Japan, China, Mexico, and Spain in contributing to this decline. The tourism sector, which once thrived on a steady influx of international visitors, is now facing significant challenges as these countries unite in driving the reduction in tourist arrivals. The latest data reveals that the downturn is not just a temporary fluctuation but a prolonged slump, projected to continue until the end of 2025.
Several reasons have been identified behind this collective slowdown in US tourism, with political tensions, rising travel costs, and stricter visa regulations playing key roles. Canada, historically one of the largest sources of visitors to the US, has seen a sharp decline in its tourist numbers, as have the other contributing nations. For many tourists, the strong US dollar and higher travel costs are making visits to the US less appealing. Meanwhile, political instability, including changes in immigration policies, has created an atmosphere of uncertainty, deterring travelers from these countries.
This decline is set to continue until the end of 2025, according to forecasts. The collaboration of countries like Canada, the UK, Spain, Brazil, Japan, China, and Mexico in this slowdown is reshaping the landscape of US tourism. As travel patterns shift, the US faces the challenge of re-attracting international visitors and reversing the effects of this prolonged decline.
UK Tourist Decline from the US
The United Kingdom, one of the U.S.’s top international markets, experienced a significant 15% decline in visitor arrivals in 2025. This decline is part of a broader trend affecting several key European markets, with political instability and stricter immigration policies being key contributors. The strong U.S. dollar has also made travel to the U.S. more expensive for British tourists, further deterring many from making the trip.
Political tensions, particularly surrounding U.S. policies under the Trump administration, have created a less welcoming environment for British tourists. Additionally, many British travelers are now opting for more affordable destinations within Europe, where the costs are lower and the travel experience is more familiar. This shift has particularly affected U.S. cities like New York and Los Angeles, which have traditionally relied on British tourists for significant revenue from shopping, dining, and cultural experiences.
The decline in UK tourism is a significant blow to the U.S. tourism industry, particularly in cities that rely heavily on British visitors. With fewer British tourists, the U.S. faces a challenge in maintaining its position as a leading global destination. Cities like New York and Los Angeles, which have long attracted high-spending British travelers, are experiencing a reduction in retail, dining, and entertainment revenue. This downturn underscores the importance of restoring confidence in the U.S. as a welcoming and affordable destination for international tourists, particularly from key European markets like the UK.
Brazilian Charm Fading from the U.S.
Brazil, once one of the U.S.’s top sources of international visitors, experienced a notable 4.6% decline in visitor arrivals in 2025. This is a sharp departure from previous years when Brazil consistently contributed large numbers of tourists to destinations like Miami, New York, and Orlando. According to the U.S. National Travel and Tourism Office (NTTO), the decline is attributed to several factors, including visa delays, which have made it harder for Brazilian travelers to plan their trips.
The strong U.S. dollar has also been a deterrent, as travel to the U.S. has become significantly more expensive for Brazilian tourists. As the cost of flights, accommodations, and daily expenses rises, many Brazilian tourists are opting for more affordable destinations in Europe and Southeast Asia, where the overall travel expenses are lower. Furthermore, the U.S.’s political instability, particularly under the Trump administration, has led to a perception of unwelcomeness among Brazilian tourists. This, coupled with the rising border security measures, has created an atmosphere of uncertainty for Brazilian travelers, prompting many to reconsider the U.S. as a destination of choice.
This drop in Brazilian tourism has had a significant economic impact on U.S. cities that rely heavily on Brazilian tourists, particularly Miami and Orlando. Both cities have seen a decline in retail, entertainment, and hospitality spending, which traditionally benefitted from the influx of high-spending Brazilian visitors. This change underscores the challenges facing the U.S. tourism sector, as cities are now dealing with a reduced flow of one of their most lucrative international markets.
Japan Decline On US
In 2025, Japan saw a 15% decline in tourism to the United States, continuing a trend of decreasing Japanese visitors. This reduction is affecting major U.S. destinations such as New York, Los Angeles, and San Francisco, which have historically attracted many Japanese travelers. Several factors have contributed to this decline, including the strong U.S. dollar, which has made travel to the U.S. more expensive, encouraging Japanese tourists to opt for more affordable destinations like Southeast Asia and Europe. Additionally, rising travel costs, including higher airfare and accommodation prices, have made the U.S. less attractive.
Another significant factor is immigration and border security concerns. Stricter visa requirements and increased scrutiny at U.S. border crossings have deterred Japanese tourists. The perception of the U.S. as politically unstable, combined with more complex travel documentation, has made many reconsider their travel plans. Cultural preferences have also shifted, with many Japanese tourists now favoring destinations with shorter travel times and similar cultural experiences, such as South Korea, Thailand, and France.
This decline in Japanese tourism has had a notable economic impact on U.S. cities, particularly California and Hawaii, which rely heavily on Japanese visitors for retail, dining, and leisure spending. The reduction in Japanese tourism spending highlights the challenges the U.S. tourism industry faces in attracting international visitors and the need to address rising travel costs, immigration concerns, and geopolitical factors to restore the Japanese market.
China Hits Hard
In 2025, the U.S. has seen a decline in Chinese tourism, driven by several key factors. The introduction of a new $250 “visa integrity fee” has increased the cost of a U.S. visa to $442, which is deterring many potential Chinese visitors. Additionally, political tensions between the U.S. and China, including trade disputes and negative rhetoric, have created an atmosphere of uncertainty, making the U.S. a less attractive destination. The weakening of the Chinese yuan and rising travel costs have also contributed to the shift, with many Chinese tourists opting for alternative destinations where the exchange rate is more favorable. This decline in Chinese tourism is concerning for the U.S. economy, especially in sectors like retail, hospitality, and entertainment, where Chinese tourists are known for spending significantly. The reduction in visitor numbers from China threatens to impact revenue in major tourist cities, such as New York, Los Angeles, and San Francisco, as well as broader tourism-related industries across the country.
Mexico’s Spice Is Too Hot For the US?
In 2025, Mexico experienced a 7.4% decline in hotel bookings and a noticeable drop in leisure travel to the U.S. Several factors have contributed to this downturn. Heightened scrutiny at U.S. borders and concerns over immigration policies have created unease among potential Mexican visitors. Many Mexican tourists, frequent visitors to U.S. destinations like California and Texas, are now opting for alternatives closer to home.
The strong U.S. dollar has made travel more expensive for Mexican visitors, further discouraging many from making the trip. Additionally, political tensions and trade disputes between the U.S. and Mexico have strained relations, creating a less welcoming environment. The perception of the U.S. as politically unstable, coupled with rising travel costs, has led many Mexican tourists to seek alternative destinations in Europe and Latin America.
Cities like San Diego, Los Angeles, and Phoenix, which have historically relied on Mexican tourists for shopping, dining, and entertainment revenue, are feeling the effects. With fewer Mexican visitors, the U.S. tourism sector faces an uphill battle, particularly in regions dependent on cross-border tourism. The decline is especially impactful in California and Arizona, which heavily rely on tourism spending. The reduced influx of Mexican tourists underscores the need for the U.S. to address political and economic challenges to restore confidence and attract this crucial visitor segment back to key tourist destinations.
Significant Decline in Spanish Tourism to the US in 2025
Spain experienced a significant decline in tourism to the United States in 2025, reflecting broader trends affecting European visitors. In March 2025, Spanish arrivals to the U.S. dropped by 25% compared to the same month in the previous year, contributing to an overall 11.6% decrease in international visitors to the U.S.
This downturn is attributed to several factors. The U.S. government’s stricter immigration policies and heightened border scrutiny have created a perception of the country as less welcoming. Additionally, the strong U.S. dollar has made travel more expensive for Spanish tourists, deterring potential visitors. These factors, combined with political tensions and economic uncertainties, have led many Spanish travelers to reconsider their plans to visit the U.S.
The decline in Spanish tourism to the U.S. has had economic implications. Tourism Economics revised its forecast, projecting an 8.2% decline in international arrivals for 2025, with significant decreases from key European markets like Spain and Germany. This shift in travel patterns underscores the need for the U.S. to address the factors contributing to the decline and work towards restoring its appeal as a travel destination for international visitors.
Canada Hits the Hardest Blow on U.S. Tourism
Canada, historically the largest source of international visitors to the U.S., has experienced a sharp 34% decline in tourism in 2025. This decline has had a profound impact on U.S. states like California, Florida, and New York, which have traditionally relied on Canadian tourists for substantial revenue. The loss of Canadian tourism is expected to result in a $29 billion revenue loss for the U.S. by the end of 2025.
Several factors contribute to this decline, including stricter border controls, which have made it more difficult for Canadian tourists to enter the U.S. The strong U.S. dollar has also made travel to the U.S. more expensive, pushing many Canadians to opt for more affordable destinations in Mexico or Europe. Additionally, growing political tensions, particularly surrounding trade disputes and immigration policies, have created a less welcoming environment for Canadian tourists.
The loss of Canadian tourists is particularly detrimental to U.S. businesses in the hospitality, retail, and entertainment sectors. With fewer Canadians visiting the U.S., cities like Miami, Los Angeles, and New York are seeing a drop in revenue from shopping, dining, and tourism-related activities. The reduced influx of Canadian visitors is significantly impacting local economies, particularly in regions like Florida and California, which rely heavily on cross-border tourism.
The U.S. tourism industry will need to address these concerns to restore confidence among Canadian travelers and prevent further losses. Restoring trust and making the U.S. a more attractive and accessible destination will be crucial to reversing this decline.Canada, historically the largest source of international visitors to the U.S., has experienced a sharp 34% decline in tourism in 2025. This decline has had a profound impact on U.S. states like California, Florida, and New York, which have traditionally relied on Canadian tourists for substantial revenue. The loss of Canadian tourism is expected to result in a $29 billion revenue loss for the U.S. by the end of 2025.
Several factors contribute to this decline, including stricter border controls, which have made it more difficult for Canadian tourists to enter the U.S. The strong U.S. dollar has also made travel to the U.S. more expensive, pushing many Canadians to opt for more affordable destinations in Mexico or Europe. Additionally, growing political tensions, particularly surrounding trade disputes and immigration policies, have created a less welcoming environment for Canadian tourists.
The loss of Canadian tourists is particularly detrimental to U.S. businesses in the hospitality, retail, and entertainment sectors. With fewer Canadians visiting the U.S., cities like Miami, Los Angeles, and New York are seeing a drop in revenue from shopping, dining, and tourism-related activities. The reduced influx of Canadian visitors is significantly impacting local economies, particularly in regions like Florida and California, which rely heavily on cross-border tourism.
The U.S. tourism industry will need to address these concerns to restore confidence among Canadian travelers and prevent further losses. Restoring trust and making the U.S. a more attractive and accessible destination will be crucial to reversing this decline.
Cross-Border Tourism Decline: Rising New QuestionsCountryTourism Decline (%)Revenue Loss ($B)Affected StatesCanada-34%$29 billionTexas, California, FloridaMexico-7.4%N/AArizona, Texas, California
The decline in cross-border tourism from Canada and Mexico is raising significant concerns for the U.S. tourism industry. These two countries have historically been the backbone of international tourism to the United States, particularly for the southern border states such as Texas, Arizona, and California. However, in 2025, the U.S. has witnessed a substantial drop in visitors from both Canada and Mexico, signaling a shift that could have far-reaching consequences for the U.S. tourism sector.
Statistics and Contributing Factors:
Canada: In 2025, Canadian tourism to the U.S. has dropped by 34%, with a $29 billion loss in tourism revenue expected by the end of the year. Factors such as stricter border controls, the strong U.S. dollar, and growing political tensions have caused many Canadians to seek alternative destinations like Europe or Mexico.
Mexico: The decline from Mexico is also significant, with a 7.4% drop in hotel bookings and a noticeable decrease in leisure travel to the U.S. in 2025. Concerns over immigration policies, coupled with the rising cost of travel, have made the U.S. a less attractive destination. Additionally, Mexico’s increasing preference for domestic tourism and closer alternatives has further fueled this decline.
Decline in Canadian Tourism to the US – State by State Impact:StateTourism DeclineKey StatisticsImpactFlorida3.4% in Q170% drop in summer air bookingsFewer snowbirds and beachgoers; loss in retail and hospitalityNew York20%25% drop in northern border crossings, 21% in JuneQuiet shopping streets; loss in luxury tourism and retail spendingWashington29%912,000 vehicles crossed from BC (Feb-Apr)Retail and dining in border towns affectedMaine30% since January85,000 fewer visitors in May compared to 2024Decline in summer tourism, affecting local businessesNew Hampshire30%Loss in ski resort and summer tourismNegative impact on small businesses, inns, and restaurantsNevada11% in Las Vegas (June)Reduced flights between Canada and Las VegasFewer gamblers and conference guests; loss in hospitality revenueMichigan11% in border crossings18% drop in car travel in MarchLoss in retail, shopping, and tourism activitiesMontana33-38% (May-June)Reduced Canadian visits to Glacier and local townsSignificant impact on border towns like Kalispell, WhitefishCaliforniaDouble-digit dropFewer visitors to San FranciscoDecline in tourism and retail spendingHere is a summary of the tourism decline from various countries to the U.S. in 2025:CountryTourism Decline (%)Key Contributing FactorsImpact on U.S. TourismCanada34%Border security concerns, strong U.S. dollar, political tensions$29 billion revenue loss, 140,000 jobs at riskGermany28%Stricter U.S. immigration policies, rising costsLoss of high-spending visitors, impact on luxury retail and cultural tourismBrazil4.6%Visa delays, rising costs, unwelcoming perceptionLoss in retail, dining, and tourism sectorsMexico7.4%Border security concerns, rising costs, preference for other destinationsDecline in shopping, dining, and entertainment revenueIndia8%Stricter visa regulations, rising travel costsSignificant impact on retail, hospitality, and entertainment sectorsUK15%Political instability, stronger U.S. dollar, rising costsDrop in tourism spending, especially in shopping and cultural venuesSouth Korea15%Rising costs, immigration concernsImpact on major U.S. cities like Los Angeles, New York, and San FranciscoSpain25%Strong U.S. dollar, rising costs, political instabilityLoss of interest in U.S. destinations, shift to alternatives in Europe and Latin AmericaJapan15%Strong U.S. dollar, rising costs, immigration concernsEconomic impact in California and Hawaii, reduction in leisure spendingChina20%Geopolitical tensions, visa delays, rising costsMajor loss in spending, particularly in retail and luxury tourismConclusion
The sharp decline in Canadian tourism to the U.S. in 2025 is having a profound impact on numerous U.S. states, affecting their economies and tourism industries. This downturn, driven by factors such as political tensions, the strong U.S. dollar, and high travel costs, is felt across both border states and major tourist destinations. States like Florida, California, New York, Washington, Maine, New Hampshire, Nevada, Michigan, and Montana have all seen significant drops in Canadian visitors, impacting retail, hospitality, and local economies. With a projected $29 billion loss in tourism revenue and 140,000 jobs at risk, the situation is urgent.
As Canadian tourists have traditionally made up a significant portion of international visitors, especially in states like Florida, New York, and Nevada, these regions are now grappling with reduced spending on leisure activities, shopping, and dining. To address these challenges, U.S. tourism authorities must adapt their strategies, improve border policies, and restore confidence in international travel, particularly among Canadian visitors.
