The United States, a long-favored destination for global travelers, faces a notable reduction in international tourism this summer (2025), affecting border towns, treasured historical spots, and bustling city centers. The World Travel & Tourism Council (WTTC) reports a 7% dip in spending by international tourists, translating to an estimated $12.5 billion hit to the U.S. tourism industry.
The decline, examined in reports from Tourism Economics, the U.S. Travel Association, and news sources like Reuters and the Financial Times, appears linked to recent immigration policies, a potent U.S. dollar, and evolving views of the nation abroad. Let’s consider the drivers, economic consequences, and potential remedies for this worrying trend.
Why International Tourism Is Declining
Tourism Economics points to a 9.4% drop in international arrivals compared to pre-pandemic figures, resulting from a mix of financial, political, and perceptual elements:
Costs and Rules: That new $250 “visa integrity fee” for travelers from nations not in the visa waiver program? It raises prices, especially for folks from Africa and the Middle East. Tougher immigration checks and border controls, started early in 2025, also discourage would-be tourists, says Reuters.
Tone and Ties: Remarks from the U.S. government seem to be breeding a feeling of unease, and that seems to be impacting folks’ confidence in wanting to visit. WTTC president and CEO Julia Simpson told Reuters that “the world’s biggest travel and tourism economy is heading in the wrong direction,” suggesting words matter when you are trying to attract visitors.
Dollar Strength: Oxford Economics says the strong U.S. dollar is making trips to the U.S. more costly for visitors, especially from Europe and Asia, reducing both affordability and demand.
Affected Regions and Countries
Border zones and busy cities are feeling this tourism decline most sharply, especially in terms of key international markets:
Canada: Traditionally the top source of international visitors for U.S. tourism (20.2 million in 2024), Canada recorded a 37% fall in road crossings and a 26% drop in flights in July 2025, per Statistics Canada and AP News. For the first time in around 20 years (excluding the pandemic), we saw more Americans visiting Canada than Canadians heading south.
Western Europe: The Financial Times notes declines of 19% from Denmark, 10% from Germany, and 6.6% from France in the initial seven months of 2025.
Asia and Africa: Reuters cites U.S. officials noting that regions like Hong Kong, Indonesia, the Philippines, and several African nations are facing double-digit drops in traveler numbers.
Economic Impacts
The ripples from this dip in U.S. tourism are spreading, leading to real economic worries:
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Revenue: The WTTC thinks there will be a $12.5 billion loss in tourist spending. AP News calculates Canada’s drop alone might cost $2.1 billion a year and affect around 14,000 jobs.
Local Commerce and Hospitality: Tourism Economics reports that hotel occupancy and demand are down in big cities like New York, Washington D.C., and Buffalo, and there aren’t signs of a quick turnaround. Small companies in border towns and popular urban areas are getting hit particularly hard.
Culture and Events: Adjustments are being made to event planning and cultural programs due to fewer visitors. This is having an effect on museums, airports, and related industries, says the U.S. Travel Association.
Does Domestic Tourism Compensate?
Even as international arrivals drop, U.S. tourism provides some counterweight. Reuters notes stable domestic demand in places like Wisconsin’s Door Peninsula and a number of inland cities. The Federal Aviation Administration reported a modest 2% rise, too. The Labor Day 2025 weekend saw a surge in domestic flight bookings, according to Cirium data. Even so, domestic tourism just can’t make up for the drop in spending by international tourists. These visitors have historically been key to supporting local economies and cultural events.
Responses from Authorities and Businesses
To counteract this downturn, authorities and businesses are actively employing several strategies:
Marketing Campaigns: For instance, Destination DC is putting a spotlight on local attractions, trying to change some of the negative ideas surrounding the U.S. as a place to visit.
Focusing Inward: Take Buffalo’s tour companies. AP News reports they’re shifting their marketing budgets toward U.S. cities and pulling back on marketing to foreign markets.
Pushing for Policy Changes: The WTTC and U.S. Travel Association are both asking for changes to visa rules and even the overall tone being used, all to win back international trust. They caution that without real action, a full recovery could take a while.
Outlook
This slump in international tourism really shows how vulnerable the U.S. tourism industry is. It depends heavily on international tourists who spend quite a bit of money. The strong dollar, policies that aren’t so open, and negative feelings about the U.S. keep causing issues, especially for places like Buffalo on the border, and big cities such as Washington D.C. Although tourism within the U.S. offers a bit of support, the loss of international dollars puts jobs and local businesses at risk. Getting things back on track means tackling high costs, making immigration easier, and running effective campaigns to make the U.S. feel welcoming again.