Home » America Travel News » US Tourism Now Leaves in Dust as Mexico, Canada, Germany, UK, China are Punishing American Tourism Economy Due to Strict Travel Policies, Losing Its Crown as the Top Destination for Vacation, But North and South Carolina, Tennessee, Hawaii Turbocharge Domestic Trips
Published on
January 6, 2026
By: Tuhin Sarkar
US Tourism Now Leaves in Dust as Mexico Canada Germany UK China are Punishing American Tourism Economy Due to Strict Travel Policies Losing Its Crown as the Top Destination for Vacation But North and South Carolina Tennessee Hawaii Turbocharge Domestic Trips
The U.S. tourism industry is facing an unprecedented shift in 2025, as countries like Mexico, Canada, Germany, the UK, and China are punishing American tourism due to strict travel policies. Once the undisputed leader in global travel, the United States is now losing its crown as the top destination for vacation. Rising visa fees, longer wait times, and restrictive entry policies have made it harder and costlier for international visitors to travel to the U.S., leading to a sharp decline in tourism revenue. This is not just about macro-economics but policy decisions that have alienated key international markets.
However, the domestic tourism sector is thriving. States like North Carolina, South Carolina, Tennessee, and Hawaii are seeing a massive surge in domestic trips, as Americans opt for local vacations. The growing demand for domestic travel has turbocharged tourism in these states, proving that while the U.S. may be losing its global tourism crown, the domestic travel market is stronger than ever.
In this article, we will explore how these states are leading the charge in domestic tourism and counteracting the negative impacts of international visitor declines.
The United States, once the reigning king of international tourism, is witnessing a shocking trend in 2025. Countries around the world are turning their backs on the U.S., and it’s not just due to macroeconomic shifts. It’s because of a staggering shift in U.S. travel policies that have made it harder, costlier, and less welcoming than ever before. Can the U.S. reclaim its crown, or is it destined to be left behind?
Let’s break it down, country by country, and explore why the U.S. is becoming the unwelcoming giant, and how this could reshape global tourism for years to come.
Canada’s Travel Boycott: The Neighbor Who Refuses to Visit
In 2025, Canada—a close neighbour and historically one of the United States’ largest sources of international visitors—has started a full-scale boycott of U.S. tourism. After years of political tension, rising tariffs, and some harsh U.S. policies, the Canadian government and citizens are now actively avoiding U.S. travel. This is evident from a 26% drop in overnight land trips from Canada, along with 14% fewer flights to the U.S.. The impact of these drastic reductions is enormous. In fact, experts predict that Canada’s travel boycott could cost the U.S. $5.7 billion in 2025 alone.
But what sparked this uproar? For Canadians, the escalating border fees and travel costs are just the beginning. It’s the total disregard for their interests that’s left a bad taste. With the new “Visa Integrity Fee” and more restrictive entry policies, Canada is saying loud and clear: “We’ve had enough.”
Germany’s Disappointment: How the U.S. Lost Its Spark for German Tourists
Germany, historically one of the U.S.’s strongest tourism markets, is also showing significant declines in visitation. From March 2025, Germany experienced a 17% drop in arrivals, a shocking shift for a country that had once contributed millions of high-spending visitors annually. But why is this happening? It’s the travel restrictions, visa delays, and social media vetting policies that are discouraging German tourists.
Germany has always been a top spender when it comes to travel, but with the U.S. raising visa application fees and imposing new digital surveillance requirements, the allure of the U.S. is starting to fade. It’s much easier for Germans to visit places like Spain, Italy, and Australia where the travel experience is simpler and less expensive. Germany’s new travel strategy is all about looking elsewhere, and the U.S. is no longer the dream destination it once was.
China’s Retreat: The U.S. Losing a Key Market in Asia
One of the most concerning trends for the U.S. in 2025 is the decline in Chinese tourism. China, which historically has sent a massive influx of tourists, has witnessed a staggering 20% decrease in its travel numbers to the U.S. in 2025. In fact, the Chinese government is urging its citizens to look for alternatives. What’s driving this shift? The complicated visa process, the hassle of long wait times, and, most crucially, political tensions.
With the U.S. and China embroiled in trade disputes and rising nationalist sentiments, it’s becoming harder for Chinese citizens to justify the journey to the U.S. when destinations like Thailand, Japan, and Europe offer simpler, cheaper alternatives. The Chinese middle class, known for its high spending power, is now staying away from U.S. shores. As a result, the U.S. stands to lose billions in spending from this once-loyal tourist base. Read the full impact.
The U.K. Follows the Path: Why the Brits Are Turning Their Back on the U.S.
The United Kingdom, which has traditionally sent millions of tourists to the United States each year, is now seeing a 13% decline in travel to the U.S. By 2025, British tourists are choosing Europe over the U.S., primarily due to higher travel costs, visa complications, and the fear of digital surveillance.
British travelers are fed up with the complex U.S. visa process, which now involves social media vetting and lengthy application times. With U.K. citizens facing a 90% fee increase for ESTA applications, it’s no surprise that many are now looking to Paris, Rome, or Barcelona for their vacations. Why bother with the U.S. red tape when Europe offers so much with fewer restrictions?
Mexico’s Woes: A Near-Complete Boycott of U.S. Land Borders
The United States’ relationship with Mexico has long been one of the world’s busiest travel corridors. But that’s changing fast. Mexico has seen a 13% growth in travel to other destinations, while land border crossings to the U.S. have dropped by 30%. This is particularly evident with Mexico’s travelers opting for other border nations like Canada and Central America.
Why this retreat from U.S. tourism? The higher border fees, longer waiting times, and economic strains are just the beginning. U.S. policies have raised costs and created barriers for everyday Mexican citizens looking to visit. The result? Fewer Mexicans are making the trek to the U.S. this year, and this economic loss is expected to climb as the land border fees rise.
Middle East Exodus: The Growing Distance Between U.S. and Gulf Nations
Gulf countries like Saudi Arabia and the UAE are taking their tourism dollars elsewhere. With the United States tightening its entry restrictions and raising visa fees, tourists from the Gulf are now flocking to Europe and Asia, where they enjoy friendlier policies and better travel experiences.
For years, the U.S. enjoyed an influx of luxury travelers from the Middle East, but as new visa restrictions and social media vetting measures set in, those high-spending visitors are no longer flocking to U.S. shores. Instead, Dubai and Europe are becoming the new go-to destinations.
Sustainable TourismHow U.S. Travel Policies Are Punishing Tourism: What You Need to Know
The U.S. travel industry, once a booming force in the global economy, is now facing a tough road ahead. Despite the world slowly recovering from the pandemic, the United States is seeing fewer international visitors, reduced spending, and a significant dip in its global tourism ranking. Why? The answer lies in a series of new policies that are making it more expensive, harder, and less welcoming for international travelers to visit the U.S.
The Hidden Cost of U.S. Travel Policies: A Growing Barrier to Visitors
In 2023, travel and tourism made up about 3% of the U.S. GDP. However, by 2025, international spending is expected to drop by $12 billion, leaving the U.S. as the only major economy to see a decline in tourism. The sharp decrease in visitors has much to do with a new set of U.S. travel policies, including higher visa fees, stricter security checks, and a more complex application process.
The “Traveler Deterrence” Fee: Visa Integrity Fee
The Visa Integrity Fee, set to take effect in October 2025, will add a $250 surcharge on most visa applications. This fee applies to various types of travelers—whether you’re visiting for business, tourism, study, or work. On top of this, travelers must also pay the existing visa application fees. Together, this means a family of four could be paying up to $1,000 extra just to get approved to visit the U.S.
This is a significant turnoff for many potential visitors. Studies show that this extra cost will discourage about 5% of international tourists, causing a loss of $3.6 billion in spending annually. Not only is it a financial burden, but it also raises the perception that the U.S. is no longer a welcoming country for tourists.
Extra Fees for Border Crossings and Travel Authorization
The new law also introduces price hikes for visa-exempt travelers who use the Electronic System for Travel Authorization (ESTA). Travelers from 42 countries who used to pay $21 for ESTA now face a $40 charge, nearly doubling the cost. If you’re driving to the U.S. from Canada or Mexico, you’ll notice the I-94 land border fee has shot up from $6 to $30.
For Canadians, in particular, this is a big deal. Travel across the U.S.-Canada border has already been on the decline, with a 26% drop in overnight land trips. The new, expensive fees are making it even less appealing to visit the U.S., and many Canadian travelers are now turning to other countries.
Long Wait Times and Administrative Roadblocks
It’s not just the fees that are making it harder for tourists. The visa application process has become increasingly difficult. Wait times for visa interviews are stretching well beyond six months in cities like Paris and Berlin, leaving travelers frustrated. In some countries like India and China, wait times exceed a year, pushing potential visitors to look for more accessible travel destinations elsewhere.
The situation worsened in early 2025 when the U.S. government made it harder to qualify for interview waivers. Now, more people have to attend in-person interviews, which only adds to the backlog and delays.
Social Media Scrutiny: Big Brother Is Watching
In a shocking move, the U.S. has expanded its social media vetting for visitors. Starting December 2025, travelers from certain countries will be required to make their social media profiles public for up to five years, allowing U.S. officials to comb through posts, pictures, and interactions. The U.S. claims this is to protect national security, but the move has sparked outrage, especially from travelers who fear their personal lives will be used against them.
This type of surveillance is chilling for many tourists, especially those from allied nations, and is likely to deter people from visiting the U.S. in the future. What’s even more concerning is that U.S. officials could use anything posted on social media—no matter how innocent—as a reason to deny entry.
The Consequences for U.S. Tourism
All of these policies are having a direct impact on the U.S. tourism economy. With fewer people choosing to visit, tourism-related businesses, including hotels, restaurants, and airlines, are seeing a drop in international spending. This loss is not just a short-term issue—it’s a long-term problem for the U.S. economy.
The hospitality sector, which relies heavily on international tourists, is particularly hard hit. Hotels, especially in major tourist cities like New York and Los Angeles, are seeing a decline in high-spending international guests. Without these visitors, the margins are tighter, and profits are falling.
In addition to the financial impact, there’s also a loss of “soft power”. The U.S. has long been a leader in global influence, but with these increasingly restrictive travel policies, the perception is changing. Countries like Canada, the UK, and Australia are becoming more appealing to international visitors, while the U.S. is being left behind.
The Impact on Business Travelers and Global Events
Business travelers are also feeling the brunt of these policies. U.S. conferences and trade shows, which attract thousands of international attendees, are now facing lower participation. Many international professionals, especially from countries like Brazil and India, are now choosing not to attend U.S.-hosted events due to the increased cost and hassle of getting a visa.
This is particularly concerning for major U.S. events like CES (Consumer Electronics Show) and IPW (International Pow Wow). These events rely on international participation, and losing out on global representation could harm the U.S.’s position as the hub for innovation and commerce.
The Broader Impact: Global Reputation
The United States is becoming known as a country that doesn’t want international visitors. The new policies, combined with the bureaucratic hurdles, have led to a growing sense that the U.S. is no longer a welcoming destination for tourists or businesspeople. As the country prepares to host major global events like the 2026 FIFA World Cup, there is a real concern that the U.S. will miss out on the opportunity to attract millions of international visitors.
The Road to Recovery: What Needs to Change?
The U.S. tourism sector is facing a critical moment. In order to regain its status as a top global destination, there needs to be a shift in policy. Streamlining the visa process, reducing the financial burden on international visitors, and enhancing the overall travel experience could help reverse the current decline.
If the U.S. doesn’t act fast, it risks a “mega-decade” of events turning into a missed opportunity. The decisions made by policymakers in the next few months will determine whether the U.S. can reclaim its position as a leading destination for international travelers or whether it will continue its downward trend.
Is the U.S. Still Open for Business?
While the U.S. has a wealth of world-class destinations and attractions, its travel policies in 2025 are making it harder for international tourists to visit. The combination of high fees, slow visa processing, and invasive vetting procedures is creating an environment where many travelers are choosing other countries instead. If the U.S. wants to recover its standing in the global tourism market, it will need to rethink its approach and remove the barriers that are discouraging visitors.
Until then, the United States may remain an unwelcoming place for many international travelers—a perception that could take years to change.
US Domestic Tourism in 2025: Leading States for Travel and Economic Growth
In 2025, domestic tourism is soaring across the United States. With Americans taking record numbers of vacations, state tourism economies are thriving. Domestic travel is driving economic growth, with states like Florida, California, New York, Nevada, Hawaii, and Texas leading the way. So, which U.S. states are emerging as the top destinations for American travelers?
New York: The Big Apple Still Draws Millions
New York continues to be one of the top domestic destinations in 2025. New York City, in particular, remains a magnet for domestic travelers. From Broadway shows to iconic landmarks like the Empire State Building and Central Park, New York City’s urban offerings are unparalleled. While tourism in New York State as a whole has been affected by economic conditions, the Big Apple still draws millions of visitors each year. Whether it’s the arts, shopping, or sightseeing, New York remains one of the most visited states in the country. Learn more about New York tourism here.
Hawaii: A Domestic Paradise
Hawaii continues to be a top destination for domestic travelers in 2025. Known for its tropical beaches, luxury resorts, and scenic landscapes, Hawaii attracts millions of visitors who come to experience paradise. The state’s tourism continues to grow, with Americans flocking to the islands for vacations, honeymoons, and family trips. Whether it’s surfing on the waves of Waikiki Beach or hiking to see the volcanoes of Big Island, Hawaii’s tourism sector remains strong. .
Nevada: The Entertainment Capital and More
Nevada, led by the iconic Las Vegas, has been a domestic tourism magnet for years. With its high-end casinos, luxury resorts, and world-class entertainment, Nevada continues to attract millions of American visitors. While Las Vegas remains the focal point, Reno and the Lake Tahoe area also draw domestic visitors for outdoor activities and cultural events. The state is known for offering an endless array of experiences, from gaming to gourmet dining and nightlife. Explore Nevada tourism trends.
Texas: A Rising Star in Domestic Travel
Texas is one of the emerging stars of domestic tourism. Known for its diverse culture, outdoor adventure, and vibrant cities, Texas attracts millions of Americans each year. Whether it’s the music scene in Austin, the Tex-Mex food in San Antonio, or outdoor adventures in Big Bend National Park, Texas has something to offer everyone. With cities like Houston and Dallas continuing to grow, Texas is quickly becoming a go-to state for travelers seeking an exciting and authentic experience. .
California: The Golden State’s Thriving Tourism Scene
California is another standout for domestic tourism in 2025. With its lush national parks, famous cities like Los Angeles and San Francisco, and the scenic beauty of the coastline, California remains an alluring destination. The state is attracting millions of domestic visitors, from nature lovers hiking through Yosemite to beachgoers soaking up the sun in San Diego. California’s diverse tourism offerings make it a perfect destination for all types of travelers, from adventurers to luxury seekers. In 2025, California continues to be a dominant force in U.S. tourism, with continued growth expected throughout the year.
Is the U.S. Losing Its Grip on Global Tourism?
The U.S. is bleeding billions in tourism revenue. Countries across the globe—from Canada and Germany to China and Mexico—are increasingly turning away from U.S. travel due to unwelcoming policies, high costs, and political friction. As Canada and other traditional visitors choose to explore more accessible, affordable, and welcoming destinations, the U.S. risks becoming an afterthought in the global tourism race.
If the U.S. wants to recover and maintain its tourism leadership, it must drastically rethink its travel policies—simplifying the visa process, reducing fees, and prioritizing global relationships over strict national security measures. The world is watching, and it’s clear that the clock is ticking on America’s tourism dominance.
