US Tourism Faces Sharp Decline in 2025, Billions Lost Amid Policy Concerns and Canadian Boycotts
US Tourism Faces Sharp Decline in 2025, Billions Lost Amid Policy Concerns and Canadian Boycotts
New data confirms a significant and unexpected downturn in international tourism to the United States for 2025, with industry experts now projecting an 8.2% decline in overall international visitation. This reversal from earlier growth forecasts is largely driven by a substantial drop in Canadian visitors, impacting border cities and popular destinations nationwide.
Businesses in key tourist hubs, particularly those near the Canadian border like Seattle, are reporting severe revenue losses. Tour operators Joe Koenen and John Brink in Seattle have seen customer numbers plummet by 30% and 50% respectively, attributing the decline to Canadian boycotts sparked by past political rhetoric and ongoing US policies. The absence of Canadian tourists, who typically make up the largest segment of international visitors, is also being felt acutely in Orlando and Las Vegas, with the latter reporting an 8% overall visitor volume drop from January to July 2025.
Beyond Canadians, other international travelers are reportedly reconsidering US trips due to concerns over immigration policies, the visible presence of the National Guard, and a new $250 visa integrity fee. Misinformation, such as fake images of the Hollywood sign burning, has also deterred some visitors. The World Travel and Tourism Council estimates the US will lose $12.5 billion in international visitor spending this year, making it the only country among 184 economies projected to see a decline.
The impact is pushing back the full recovery of US tourism to pre-pandemic levels from 2026 to 2029, according to Tourism Economics. Industry leaders are urgently calling on Congress to fully fund Brand USA, a critical marketing initiative, after federal matching funds were drastically cut in July. While some hope exists for a rebound with events like the 2026 FIFA World Cup, experts warn it may not be enough to offset the current damage.
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