US International Travel Sees Mixed Recovery in First Half 2025 Amid Canadian Drop

The latest data from the U.S. Travel Association reveals a mixed performance for international inbound travel to the United States during the first half of 2025. While overall international visits saw a modest decline of 3.4%, this was primarily driven by a significant drop in Canadian travelers, dragging down total spending by an estimated $1.9 billion.

Visits from Canada plummeted by nearly 19% compared to the same period last year, with June 2025 proving particularly challenging, seeing a more than 26% reduction in Canadian visitation.

However, the downturn was partially offset by a robust increase in visitors from Mexico. Mexican travel surged by 12.5% in the first half of 2025, with June alone experiencing a 14.8% rise. These 940,000 additional Mexican travelers contributed nearly half a billion dollars in new spending, providing a crucial counterbalance to the Canadian decline.

The U.S. Travel Association commented on the figures, noting that while travel remains a priority for consumers, broader economic concerns are evident. Despite a rapidly evolving global environment, international visits have shown resilience across most markets, with Canada being the notable exception as the largest inbound source.

Major travel companies such as Hilton, Wyndham, and Travel and Leisure are closely monitoring these trends as they prepare to report their earnings next week. The impact of these shifts is also being felt in destinations like Las Vegas, which has seen declines in both Mexican and Canadian international visitors, potentially affecting the upcoming results for casino operators including Caesars, MGM, Boyd, and Red Rock Resorts.

Concerns within the travel industry persist regarding potential cuts to marketing and promotion of U.S. destinations overseas, and increases in travel visa fees, stemming from President Donald Trump’s tax-and-spending law. These issues could become particularly problematic leading up to the World Cup next year.

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