Published on
September 17, 2025
France joins Canada, Norway, China, Denmark, the UK, Mexico, and more in experiencing a sharp drop in US tourism in the first nine months of 2025, primarily due to stricter immigration policies and the strengthening of the US dollar. Due to these circumstances, traveling has become more expensive and more difficult, which has also decreased the number of visitors coming from important markets abroad. This shift has greatly affected the US tourist sector which is projected to lose around $12.5 billion, particularly from France, Canada, and China. There is also a secondary effect on domestic economies which is greatly negative and focused on the services of international tourists, especially on urban areas and regions.
For decades, the United States has been a top destination for travelers worldwide, offering everything from the allure of iconic landmarks to the vibrant energy of its cities. However, the summer of 2025 marks a troubling shift for US tourism, as the country is experiencing a sharp decline in international visitors. According to the World Travel & Tourism Council (WTTC), there’s been a notable 7% drop in spending by overseas tourists, which translates to an eye-watering $12.5 billion loss for the US tourism industry.
What’s behind this alarming dip? A blend of factors, from stringent immigration policies and a robust US dollar to the imposition of tariffs, are steering international travelers away. Countries like France, Canada, Norway, China, Denmark, the UK, and Mexico have all seen their tourism numbers drop sharply, a trend that’s reshaping the tourism landscape in the US.
Let’s dive into the reasons behind the slump, examine the economic fallout, and explore potential solutions to restore the flow of international travelers.
The Forces Behind the Decline in US Tourism
The downward trend in international tourism to the US is not just a fluke—it’s driven by deep-rooted issues that are altering how the world perceives America as a travel destination. Here’s a look at the primary factors at play.
1. Rising Costs and Stricter Rules
A significant roadblock for international tourists is the recent hike in travel costs, notably the new $250 “visa integrity fee” imposed on travelers from nations not in the visa waiver program. While this extra charge might seem small, it’s a tough pill to swallow for tourists from regions like Africa and the Middle East, where the financial burden of travel already weighs heavy.
Immigration Checks: On top of the increased visa costs, tougher border checks have made entering the US more time-consuming and complicated. These additional hurdles are dissuading potential visitors, who now face longer wait times and the looming uncertainty of travel restrictions.2. A Shift in Tone and Diplomatic Relations
The current political climate in the US is also playing a significant role in the decline. Statements and policies from the US government that have been perceived as divisive or unwelcoming are fueling apprehension among foreign travelers.
3. The Strong US Dollar
The strength of the US dollar has undoubtedly made trips to the US less affordable for tourists, particularly those from Europe and Asia. When the dollar strengthens, everything from hotels to meals becomes more expensive for foreign travelers, reducing both affordability and demand.
A Barrier to Affordability: Travelers from regions like Europe and Asia, where currencies are weaker, find it increasingly difficult to stretch their travel budgets. As a result, fewer people are booking trips to the US, particularly for extended stays.Countries Feeling the Pain
The effects of these economic and political shifts are particularly visible in key regions, with countries across North America, Europe, and even Asia witnessing a significant drop in US-bound travelers.
Canada: A Historic DeclineVisitor Numbers: Canada, traditionally the US’s top source of international tourists, recorded a 37% drop in road crossings and a 26% decrease in flights to the US in July 2025 alone.Unexpected Turnaround: For the first time in two decades, Americans are visiting Canada more than Canadians are traveling to the US. This is a stunning reversal of trends, and the economic impact is clear, with the US set to lose around $3 billion CAD in tourism revenue from Canada alone.Mexico : Mexico has also seen a notable dip in visitor numbers, with air travel from Mexico to the US declining by 11.8% in 2025. While this decline is not as severe as some other countries, factors like rising visa fees, political rhetoric, and economic uncertainties have contributed to the slowdown. Given Mexico’s proximity to the US, these changes have profound effects on border towns and cities like San Diego and El Paso, where cross-border tourism is a vital part of the economy.Europe: A Steep DownturnDenmark: Danish tourism to the US has dropped by 19% as a result of rising costs and perceived barriers to entry.Germany: German visitor numbers have plummeted by a staggering 28%, with many Germans now opting for other destinations in Europe rather than crossing the Atlantic.France: France, a long-time major source of US tourists, has seen a 25% reduction in travel to the US, with the rising cost of travel, visa concerns, and negative perceptions of US immigration policies playing a large role.Southern Europe and Other RegionsChina: China has also been significantly impacted, with a nearly 14% drop in travel to the US. Tensions between the US and China, including trade disputes and changes in visa policies, have contributed to this decline. The reduction in Chinese tourists has resulted in lost revenue for US businesses that rely heavily on this demographic, especially in luxury goods and high-end hospitality sectors.Asia and Africa: Countries like Hong Kong, Indonesia, and the Philippines, alongside several African nations, have also witnessed double-digit drops in visitor numbers to the US, exacerbated by tariffs, restrictive visa policies, and rising travel costs.The Economic Fallout
This decline in international tourism isn’t just a statistic—it’s a significant blow to the US economy, with ramifications that ripple through various sectors.
1. The Revenue Loss
The WTTC forecasts a loss of $12.5 billion in tourist spending due to the dip in international visitors. This loss represents more than just a financial setback; it affects numerous industries that depend on foreign travelers, including airlines, hospitality, and retail.
Canada’s Impact: The decrease in Canadian visitors alone is expected to cost the US around $2.1 billion annually, alongside the loss of about 14,000 jobs in tourism-dependent sectors.2. Hotel Occupancy and Local Businesses
Cities like New York, Washington D.C., and Buffalo are seeing a significant decrease in hotel bookings and local commerce. Smaller businesses, particularly in border towns and tourist hotspots, are particularly vulnerable.
Job Losses: The tourism downturn has already led to job cuts in the hospitality industry, with hotels, restaurants, and transport services feeling the pinch. Local businesses that rely heavily on international visitors are struggling to stay afloat.3. Cultural and Event Tourism
Cultural institutions like museums, art galleries, and major event venues are seeing fewer international visitors. Many events and festivals that typically draw tourists from abroad are adjusting their programming or reducing their scope in response to lower attendance.
Museums and Airports: Even iconic locations like the Smithsonian in Washington D.C. and major airports have reported lower foot traffic, causing a knock-on effect on the local economies that depend on visitor spending.Domestic Tourism as a Cushion
While international tourism is falling, US tourism officials are finding solace in the stability of the domestic market. Data from the Federal Aviation Administration shows a modest 2% increase in domestic flight bookings in the first half of 2025, with areas like Wisconsin’s Door Peninsula and smaller inland cities enjoying stable demand.
However, even with this slight uptick, domestic tourism alone cannot compensate for the loss in international spending. International tourists traditionally contribute much more to the local economy, especially in urban hubs and cultural centers that rely on foreign visits to sustain their industries.
Responses from the US Government and Businesses
To counteract the downturn in tourism, various businesses and authorities are stepping up their efforts to attract travelers back to the US.
1. Targeted Marketing CampaignsDestination DC is leading the charge with an aggressive campaign to promote local attractions to US-based tourists. This includes highlighting hidden gems, cultural experiences, and events that may appeal to domestic travelers.Buffalo’s Shifting Focus: Tour operators in Buffalo are now reassigning their marketing budgets to focus more on attracting US tourists, as the decline from foreign markets becomes more pronounced.2. Lobbying for Policy Change
Industry associations like the WTTC and the US Travel Association are calling for immediate reforms to the visa process and diplomatic tone. They argue that without a significant shift in approach, it could take years for the tourism industry to recover fully.
The Path Forward: Reviving US Tourism
To reverse this decline and restore the US as a top global destination, the following actions are essential:
Simplifying Visa Procedures: Reducing the complexity and costs of obtaining a US visa would significantly improve the visitor experience and make travel more accessible.Improving International Perception: The US needs to actively address negative perceptions through diplomatic efforts and marketing campaigns that promote its welcoming culture, diverse attractions, and world-class hospitality.Enhancing Affordability: Addressing the strong US dollar’s impact on international travelers and reducing the additional costs of travel (such as the visa integrity fee) would encourage more tourists to choose the US as their destination.
France joins Canada, Norway, China, Denmark, the UK, Mexico, and more in experiencing a sharp drop in US tourism in the first nine months of 2025, primarily due to stricter immigration policies and a strong US dollar. These factors have made travel more expensive and difficult, discouraging international visitors.
Despite the challenges, there is hope for the US tourism industry. By taking action to address the barriers to travel, adjusting visa policies, and restoring its reputation as a welcoming destination, the US can once again become the travel hub it has long been. But it requires collaboration between the government, tourism bodies, and local businesses to rebuild the trust of international travelers and encourage them to visit once again. The US has the potential to recover, but it needs to evolve to meet the demands of a changing world.
