Published on
August 20, 2025
The United States is experiencing an unprecedented drop in international tourism as visitors from Canada, Europe, and other emerging key markets reduce their travel in 2025. Rising costs, including higher visa fees and increased travel expenses, combined with stricter border policies and global uncertainty, are discouraging travelers from choosing the U.S. as a destination. This decline threatens both economic revenue and the vitality of cities and regions that rely heavily on international visitors.
While global tourism continues to grow at a robust pace, the United States is experiencing a noticeable downturn in international visitor numbers and spending. Recent projections from the World Travel & Tourism Council (WTTC) indicate that the U.S. is set to be the only major economy to witness a decline in international tourism revenue in 2025. Data from March 2025 highlights a 14% drop in international arrivals compared with the same period in 2024, signaling a concerning trend for the nation’s tourism sector.
The decline is particularly pronounced among travelers from Canada, historically one of the largest sources of visitors to the United States. Canadian arrivals in May 2025 fell 38% by car and 24% by air compared to May 2024. Western Europe has also seen a downturn, with a nearly 5% decrease in tourism projected for the year. Collectively, these declines could translate into an estimated $29 billion loss in tourism revenue, and experts warn the impact could worsen if current policies remain in place.
Several factors are contributing to this slowdown. Proposed visa fees, including a $250 travel integrity charge affecting travelers from multiple countries, are raising the upfront cost of visiting the U.S. without significantly improving processing times. Heightened border security measures and strict entry requirements have further complicated travel, creating an impression that international visitors are less welcome. Trade tensions, tariffs, and strained diplomatic relations with key nations have also diminished the United States’ appeal as a global destination.
The economic implications of declining tourism are significant. The sector contributes more than $2 trillion annually to the U.S. economy and supports roughly nine million jobs. While some regions are less dependent on international visitors, many urban centers and border communities are heavily affected. For example, Las Vegas recorded an 11.3% drop in visitor numbers in June 2025 compared with the same month in 2024. Towns near the Canadian border are also reporting sharp decreases in tourism activity, affecting local businesses, hospitality, and service industries.
Reversing this trend requires coordinated policy changes and strategic efforts to enhance the country’s image abroad. Experts suggest that eliminating unnecessary visa fees, streamlining visa processing, and reducing wait times are essential first steps. Improving border entry experiences, particularly for travelers from trusted nations, could make international visitors feel more welcome and encourage repeat visits. Targeted global marketing campaigns highlighting the diversity of U.S. attractions, cultural experiences, and natural landscapes can also help restore confidence and interest in the destination.
Strengthening relationships with top tourism markets is another critical component. Countries such as Canada, the United Kingdom, Germany, and Japan have historically contributed significantly to U.S. tourism revenue, and fostering positive diplomatic and trade relations can help maintain and grow visitor numbers. Encouraging collaboration between federal agencies, tourism boards, and travel organizations can amplify outreach efforts and create cohesive strategies to attract international travelers.
Local communities and businesses can also take proactive measures to mitigate the downturn. Promoting domestic travel, hosting cultural events, and developing partnerships with airlines or travel platforms can drive visitation even when international arrivals are down. Incentives such as discounted lodging, dining packages, and loyalty programs can further encourage tourists to explore lesser-known destinations, supporting local economies and keeping tourism revenue circulating.
The U.S. is facing a record decline in international tourism as visitors from Canada, Europe, and emerging markets cut travel due to rising costs, higher visa fees, and stricter border policies, threatening key cities and billions in revenue.
The stakes are high. Without meaningful reforms and a concerted effort to restore the U.S.’s image as a welcoming and accessible travel destination, the country risks long-term declines not only in tourism revenue but also in the broader benefits of international engagement. Tourism is more than an economic driver; it supports cultural exchange, strengthens international relationships, and enhances the United States’ global influence. Ensuring that visitors feel welcome and valued will be essential for sustaining the sector and maintaining its critical role in the national economy.
