Turkey Joins US, Canada, Croatia and Japan in Confronting July 2025 Tourism Decline as Currency Pressures, Regional Competition and Traveller Behaviour Drive Visitor Losses, New Report is Here

Published on
August 24, 2025

By: Tuhin Sarkar

Turkey joins US, Canada, Croatia, Japan in confronting a decline in July tourism as visitor numbers fall this year, creating new challenges for destinations that depend heavily on travel revenues. In Turkey, July 2025 arrivals fell nearly 5%, while the US saw overseas visitors fall by more than 3%. Canada reported a sharp fall in cross-border trips, especially by car, while Croatia registered a 2% dip during its busiest summer month. Even Japan, despite a record-breaking total, saw significant falls from markets like Hong Kong and South Korea. Together, these examples show that July was not smooth sailing for the global tourism industry.

Currency and cost pressures are a major factor. A strong lira in Turkey, a strong dollar in the US, and rising living costs worldwide have reshaped travel choices. Regional competition also plays a role, with travellers comparing prices between Mediterranean rivals or Asian destinations. Shifts in traveller behaviour, from shorter trips to last-minute bookings, have further influenced results.

Turkey joins US, Canada, Croatia, Japan in revealing how fragile global travel flows can be, even during the peak of summer. The July 2025 downturn is a signal for leaders to act, adjust, and innovate before the next season arrives.

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Yet not all was negative. Germany remained the single largest source of visitors, sending 981,000 travellers in July, equal to more than 14% of total arrivals. Russia followed with 954,000, and the United Kingdom provided almost 600,000. These markets kept the decline from being deeper, but they also underline a risk. Turkey relies too heavily on a handful of countries. When smaller but important markets like the US or Iran weaken, the overall numbers suffer.

For Turkey, the July 2025 decline is a warning. Tourism is not guaranteed, even for a destination as popular as Turkey. Diversification, competitive pricing, and stronger marketing will be needed to restore confidence. With autumn campaigns ahead, the sector has a chance to recover. But July’s figures show that action cannot wait.

Tourism is often seen as the pulse of a country’s economy. When visitors arrive in large numbers, hotels, restaurants, and local businesses thrive. Yet July 2025 has shown a different reality for several countries. Turkey, Croatia, Canada and the United States all reported a drop in visitors. The decline is not the same everywhere, but it signals deeper challenges. In a month usually filled with record arrivals, these numbers are a warning for the global travel industry.

Turkey Faces a Sharp Summer Decline

Turkey is one of the world’s most popular summer destinations. It offers beaches, cultural treasures, and city breaks. Yet in July 2025, foreign visitor arrivals fell by 4.97%. That meant the country welcomed 6.97 million visitors, down from the same month last year.

The decline was not small, because July is usually the peak of the Turkish tourism calendar. Germany remained the leading source market with 981,000 visitors. Russia followed closely with 954,000, while the United Kingdom sent nearly 600,000 travellers. Together, these three markets kept the numbers from falling further.

The problem came from other key sources. The United States saw arrivals fall by 21.9%, equal to more than 42,000 fewer tourists. Iran dropped almost 19%. Greece also recorded a 14% fall. For Turkey, these falls created a wider decline of 2.1% for the January to July period. It shows that the summer downturn was not an isolated case but part of a longer trend.

Why Turkey’s Decline Matters

Tourism makes up a large share of Turkey’s foreign income. July is the month when hotels and resorts earn the most. A 5% fall at this time affects revenues for the rest of the year. The strength of the Turkish lira and rising costs made trips more expensive for foreign visitors. At the same time, competition from Greece, Spain, and Croatia gave travellers many choices.

The decline also shows the risk of relying too heavily on a small group of markets. Germany and Russia delivered strong results, but when the United States, Iran, and Greece fell, the balance was lost. For Turkey, this means the need to diversify tourism sources is more urgent than ever.

Croatia Records Smaller but Notable Loss

Croatia is another summer favourite, famous for its Adriatic coast and UNESCO heritage cities. In July 2025, it welcomed 4.6 million visitors. That was down 2% compared to July 2024. Overnight stays also fell by 1%, to 29.2 million.

The fall may seem smaller than Turkey’s, but it is significant because July is Croatia’s busiest month. Tourism accounts for more than 20% of the Croatian economy. Even small dips in visitor numbers can ripple across the economy.

Officials said the decline came from softer flows in some European markets. While arrivals from Germany and Central Europe remained steady, there was less demand from certain other countries. This reflects how sensitive Croatia is to short-term shifts in European holiday plans.

Lessons from Croatia’s Numbers

Croatia’s decline was limited, but it shows how even strong destinations can face sudden changes. With high demand for Mediterranean holidays, Croatia has enjoyed rapid growth in recent years. Yet travellers now compare prices more carefully. Competing offers from Spain, Greece, and Turkey give tourists alternatives.

The July decline suggests that Croatia cannot take continued growth for granted. The lesson is that diversification, innovation, and better seasonal marketing are essential. Without these, even small dips in numbers can hurt long-term momentum.

United States Sees Overseas Visitors Fall

The United States remains one of the world’s largest travel markets. Millions visit for holidays, study, and business. But in July 2025, overseas visitor arrivals fell by 3.1% compared to July 2024.

The data came from the National Travel and Tourism Office. It showed that while overall international air traffic rose, the number of overseas visitors declined. This means that growth came from border neighbours like Canada and Mexico, but long-haul markets weakened.

For the U.S., the decline is troubling because overseas travellers usually spend more. They stay longer, book more hotels, and spend heavily on shopping and attractions. Losing even a small percentage of them has an outsized impact on tourism revenues.

What Explains the U.S. Decline

Several factors are at play. High costs of travel, the strength of the U.S. dollar, and visa delays are all barriers. Travellers from Europe and Asia may find the U.S. less affordable compared to other destinations. Safety concerns and shifting global trends also affect decisions.

The fall in overseas visitors is particularly important because it comes during a summer of strong global travel demand. While airports were busy, the mix of travellers shifted. For policymakers and businesses, the message is clear: the U.S. must address visa and cost barriers to recover lost demand.

Canada Reports Fewer Border Visitors

Canada also faced challenges in July 2025. The country’s leading indicator of tourism arrivals showed a 15.6% decline in international movements compared with July 2024. The sharpest drop came from cross-border car travel. U.S. residents made 7.4% fewer trips by car into Canada.

Air arrivals by foreign visitors rose slightly, by 3.1%. However, this was not enough to offset the losses from road traffic. Canadians themselves also travelled less abroad, with both air and car trips down by double digits. This broader pattern reflects how regional cross-border tourism has slowed.

For Canada, border markets are vital. Day trips, weekend visits, and short breaks across the U.S. border support local economies. When these trips fall, businesses near the border feel the impact quickly.

Why Border Tourism Matters for Canada

Cross-border travel between the U.S. and Canada is unique. It supports small towns, shopping centres, and festivals that rely on visitors who come for a day or a weekend. A 7% decline in U.S. car visitors seems small, but it represents tens of thousands of missed trips.

At the same time, air arrivals remain stable. This suggests that long-haul markets like Europe and Asia are holding steady. The challenge is closer to home. Canada must focus on keeping border crossings easy and attractive for U.S. residents. Simplifying customs processes and creating special tourism offers could help rebuild demand.

Market-Specific Declines in Asia

Not all declines came from entire countries. In Japan, July 2025 was a record month overall with 3.43 million visitors. Yet inside that growth, some markets dropped sharply. Arrivals from Hong Kong fell 36.9%. Visitors from South Korea fell 10.4%.

The reasons were weather disruptions and regional travel concerns. A major typhoon and reports linked to earthquakes affected confidence. This shows how even in record-breaking months, individual source markets can weaken. For Japan, it is a reminder that market diversity can hide significant risks.

The Bigger Picture of July 2025

Taken together, the July 2025 data shows how fragile tourism can be. Turkey saw a sharp fall in arrivals. Croatia faced a smaller but meaningful dip. The United States lost higher-spending overseas visitors. Canada recorded fewer cross-border trips. Japan’s overall record masked declines from key neighbours.

These examples highlight that tourism depends on many factors: currency strength, global demand, regional competition, and even weather. No country is immune from sudden changes. July 2025 has been a lesson that growth cannot be assumed, even in peak seasons.

What the Declines Mean for the Industry

The declines matter because they come at a time of global travel growth. Many destinations reported record highs, yet these countries bucked the trend. This shows that competition is fierce. Travellers are more flexible, choosing destinations based on cost, safety, and convenience.

For the industry, the July results suggest the need for resilience. Countries must invest in infrastructure, simplify travel rules, and diversify markets. Relying on one or two big source countries is no longer safe. A balanced mix is key to withstanding shocks.

Conclusion: A Wake-Up Call for Tourism Leaders

July 2025 will be remembered as a mixed month for global tourism. Some countries celebrated records, but Turkey, Croatia, the United States and Canada recorded falls. Each decline tells a different story, but together they highlight a shared truth. Tourism is dynamic, fragile, and highly competitive.

For policymakers, the challenge is to act quickly. For businesses, the need is to adapt to new patterns of demand. For travellers, the shifts may open opportunities in pricing and availability. The July data is not just numbers. It is a reminder that tourism success must be earned, protected, and carefully managed.

Turkey’s tourism industry has entered a challenging phase. In July 2025, foreign visitor arrivals fell 4.97% year-on-year, marking a sharp shift during the country’s peak summer season. The decline, driven by weaker demand from Europe, North America, Iran, and Greece, could place added pressure on revenues and growth forecasts.

July 2025 Visitor Numbers Show Decline

In July 2025, Turkey welcomed 6,969,546 foreign visitors. This was down by nearly 5% compared to July 2024. The decline is significant because July is usually one of the strongest months for Turkish tourism. Provisional data from the General Directorate of Security highlights a contraction across several key markets. While millions still travelled, the dip shows how fragile demand has become. The slowdown in numbers may not be uniform, but its effect on the broader industry is clear. It raises concerns at a time when the tourism economy depends heavily on steady inflows of travellers.

Germany and Russia Continue to Lead

Germany remained Turkey’s most important inbound market. In July 2025, 981,005 German tourists visited the country, making up 14.08% of total arrivals. Russia followed closely with 953,733 visitors, representing 13.68% of the market. The United Kingdom also performed well, contributing 597,155 visitors, equal to 8.57% of the total. Poland and the Netherlands rounded out the top five markets, showing resilience even as others declined. The consistent demand from Germany and Russia provided stability in a month otherwise defined by losses. These markets underline their importance as anchors for Turkey’s tourism sector.

European Markets Record Overall Losses

Despite the strength of Germany and the UK, Turkey faced an overall decline in European visitors. Arrivals from Europe fell by 202,998 in July compared with the previous year. That drop represents a 4.94% fall, a worrying sign given Europe’s role as Turkey’s largest source of travellers. Seasonal bookings were affected by economic headwinds and shifting preferences. While traditional sun and beach destinations remain attractive, competition from other Mediterranean countries has grown. The data shows that Europe, long a stronghold for Turkish tourism, is now a region where pressure is mounting.

Sharp Decline in United States Visitors

The United States recorded one of the steepest declines among Turkey’s inbound markets. Arrivals from the US fell 21.91% in July, equal to 42,502 fewer tourists compared with the same month in 2024. The loss highlights the challenges Turkey faces in attracting long-haul visitors. Economic factors, shifting airline schedules, and competing destinations may all play a role. For a market that provides high-spending tourists, such a drop is concerning. If the trend continues, it could limit revenue growth despite stability in closer regional markets. The US remains an important but volatile source.

Iran and Greece See Major Reductions

Neighbouring markets also recorded sharp downturns. Arrivals from Iran dropped from 312,554 in July 2024 to 253,523 in July 2025. That decline equals 18.89%. Greece also recorded a 14.38% fall year-on-year. These declines are significant because both markets contribute strongly to short-haul inflows. Political, economic, and regional factors may be weighing on demand. For Turkey, losing visitors from its immediate neighbours adds another layer of concern. It suggests that the slowdown is not only global but also regional, impacting countries that usually provide steady flows.

Year-to-Date Data Reflects Wider Weakness

The weakness was not limited to July alone. Between January and July 2025, Turkey welcomed fewer visitors overall compared to the same period in 2024. The year-to-date decline stands at 2.1%. While not dramatic, the trend is negative during what should be a period of strong performance. Germany and Russia continue to provide high volumes, but the fall from the US, Iran, and Greece is weighing on results. For policymakers, this broader decline highlights that the July drop is not a one-off event. Instead, it signals deeper challenges in sustaining growth.

Economic and Industry Implications

Tourism is one of Turkey’s most important economic sectors. A decline in arrivals, especially during peak summer months, can have far-reaching effects. Hotels, restaurants, airlines, and small businesses all feel the impact. Revenue losses can spread across local economies. The July 2025 data points to challenges that go beyond a seasonal dip. Global economic uncertainty, strong competition, and shifting traveller behaviour are shaping demand. Unless reversed, the fall could put pressure on the country’s wider economic recovery. For Turkey, the message is clear: stronger strategies are needed to stabilise arrivals.

The Role of Source Markets in Stability

Germany and Russia’s strong performance prevented sharper losses. Together, these two markets contributed nearly two million visitors in July. They continue to act as pillars of stability. The UK also remains consistent, with nearly 600,000 visitors. However, relying too heavily on a small set of markets is risky. Diversification is vital. Turkey will need to rebuild confidence in other regions, including North America, the Middle East, and neighbouring countries. Balanced growth will provide greater protection against sudden declines in any single market. The July results show the risks of dependence.

Future Outlook for Turkey’s Tourism

Looking ahead, Turkey faces both challenges and opportunities. The decline in July may reflect temporary factors, but it also raises questions about long-term resilience. Autumn campaigns will be crucial in attracting visitors during the shoulder season. Authorities and industry players must analyse shifting travel flows and adapt quickly. Marketing strategies, airline partnerships, and regional cooperation will all play roles. If managed effectively, Turkey can regain momentum. But if ignored, the July downturn could signal the start of a more sustained slowdown in 2025.

A Warning Sign for Turkish Tourism

Turkey’s 4.97% decline in July 2025 foreign visitors is more than a statistic. It is a warning sign for one of the country’s most vital industries. With year-to-date numbers also down 2.1%, the sector faces pressure from multiple markets. Germany and Russia continue to provide strong support, but steep drops from the US, Iran, and Greece reveal broader weaknesses. The coming months will be critical. Whether the downturn proves temporary or more lasting will shape strategies for the rest of 2025. For now, Turkey’s tourism sector stands at a crossroads.