The summer of 2025 has delivered a sobering reality to Los Angeles, a city long celebrated for its sun-soaked boulevards, glitzy attractions, and status as a global tourism powerhouse. According to Visit California, international tourist arrivals to Los Angeles fell by nearly 10% during the peak travel season, reversing years of steady growth and sending shockwaves through the city’s economy. The drop is more than just a number—it’s a story written in empty hotel rooms, shuttered souvenir shops, and the anxious faces of business owners up and down Hollywood Boulevard.
What’s behind this sudden downturn? The answer, it seems, is a perfect storm of disasters, policy decisions, and shifting global perceptions. January’s destructive Eaton and Palisades wildfires left a scar not just on the landscape but on the city’s image abroad. The fires dominated headlines worldwide, painting a picture of a region in crisis. Then, in June, a series of high-profile immigration raids rattled communities and made international news, further dampening the city’s reputation as a welcoming destination.
But the challenges didn’t stop there. President Trump’s unpredictable tariff policies and broader geopolitical posturing have made the U.S. a less attractive option for many international travelers. Tariffs have led to higher prices on everything from souvenirs to hotel supplies, while the specter of border detentions and capricious entry denials has left would-be visitors wary. As Salim Osman, an employee at Ride Like A Star—a luxury car rental company on Hollywood Boulevard—put it, “It used to be shoulder to shoulder out here. It’s a lot harder for people to come here, or they’re afraid of what’s going on here, so they just don’t come.” (Los Angeles Times)
The numbers tell the tale. In just three months through August, Los Angeles saw a loss of over 170,000 international tourists compared to the previous year, with August alone registering a 7.5% drop from 2024. Canadian tourists, traditionally a reliable mainstay for the city’s tourism sector, stayed away in droves. Arrivals from Canada plummeted by as much as 38% compared to last year, a dip attributed to both political tensions—President Trump’s talk of making Canada the “51st state” and new tariffs did not go over well—and a strong U.S. dollar making travel more expensive. “We’ve hurt our Canadian friends with actions that the administration has taken. It’s understandable,” Palm Springs mayor Ron deHarte told the Los Angeles Times. “We don’t know how long they won’t want to travel to the States, but we’re hopeful that it is short-term.”
Meanwhile, visitors from China, India, Germany, and Australia also avoided California, compounding the economic pain. The effects were felt everywhere: around the TCL Chinese Theater, fewer tourists lined up to press their hands into the concrete prints of celebrities; Madame Tussauds wax museum saw a decline in guests eager for selfies with Spider-Man and Mickey Mouse; even theme parks and iconic sites like Yosemite reported a drop of as much as 50% in bookings ahead of Memorial Day weekend. Dennis Speigel, president of International Theme Park Services, described 2025 as a “soft year” for most theme parks nationwide, citing “the general economy, the media, the tariffs, the confusion and the uncertainty that came with that.” (Los Angeles Times)
Yet amid the gloom, there were pockets of resilience. Perhaps surprisingly, Mexican visitor numbers actually rose by 5.4% in 2025, despite the chilling effect of ICE raids that often targeted Latino communities. International visitor growth from Italy, the United Kingdom, and Japan was also noted, with Japanese arrivals up 20%—a spike some attribute to the popularity of Dodgers star Shohei Ohtani. “There’s always a way to adjust, but it’s going to be difficult,” said Navid Sapir, vice president of Star Line Tours. His company lost almost 10% of its typical customers since the start of the year but remains determined to innovate, especially with Hollywood’s entertainment industry offering new opportunities. (NBC Los Angeles)
Still, the overall impact on the local economy has been profound. Tourism supports more than 1,000 local businesses and employs approximately 510,000 people across Los Angeles and California. In 2024, international visitors spent $26.5 billion in the state, and total tourism revenue hit a record $157.3 billion, creating 24,000 jobs. But with fewer tourists, businesses have been forced to adapt. Souvenir shops, for example, have raised prices to offset declining sales and increased wholesale costs due to tariffs. Hotels, too, are feeling the pressure, facing not only lower occupancy rates but also looming increases in minimum wages for workers—set to rise to $30 an hour by 2028, just before the Olympic Games. “Hotels were not back to pre-pandemic numbers when the wildfires hit,” said Jackie Filla, president of L.A.’s Hotel Association. “The adoption of recent regulations that have steeply escalated labor costs have created additional challenges for hotels and the hundreds of small businesses within them.” (Los Angeles Times)
The city’s airports have not been spared. Long Beach Airport saw a 10.5% decrease in passenger traffic compared to 2024, a trend echoed at other regional airports. Cynthia Guidry, the airport’s director, is now looking for ways to shore up revenue ahead of the 2028 Summer Olympics—focusing on non-aeronautical income sources like dining and retail, rather than relying solely on flight schedules. “We’re focused on attracting new service, growing non-aeronautical revenue and managing expenses to stay resilient,” Guidry said. (Los Angeles Times)
Even as the industry grapples with these setbacks, California’s leaders are urging perseverance. Governor Gavin Newsom has publicly encouraged travelers to keep visiting the Golden State, hoping to reassure both domestic and international audiences. Some families, like the Luz family from Toronto, refused to be deterred by the headlines. “We’ve had this planned since last year, before all this ruckus started,” said Charlie Luz. “Yeah, it’s a little scary at first, but I’m glad we’re here.” (NBC Los Angeles)
Looking ahead, the city’s fortunes may hinge on global perceptions and economic conditions. Adam Burke, president of the Los Angeles Tourism and Convention Board, summed up the challenge: “Los Angeles is California’s primary international gateway; the impacts are felt statewide. Looking ahead, long-term recovery will depend on global economic conditions and how the U.S. is perceived abroad.” (Los Angeles Times)
For now, the glittering lights of Hollywood shine a bit dimmer, but the city’s spirit—and its hope for a tourism rebound—remains undimmed.
