International tourism in the United States has taken a dramatic tumble in 2025, leaving industry leaders and local officials scrambling for answers—and solutions. The numbers tell a sobering story: international arrivals have dropped by 8.2% compared to last year, and the financial losses are mounting. According to the World Travel & Tourism Council (WTTC), the U.S. economy is staring down a $12.5 billion shortfall in international visitor spending this year alone. The decline, which has persisted for five out of the past six months, is being felt from the bustling casinos of Las Vegas to the historic streets of Washington, D.C., and the once-busy border crossings of Buffalo, New York.
So, what's behind this downturn? The consensus among experts and industry insiders points squarely at the political climate and policy decisions coming out of Washington. With President Donald Trump back in the White House for his second term, a series of immigration and trade measures—combined with a sharp uptick in tariffs and a new, hefty visa integrity fee—have made the U.S. seem less welcoming to foreign visitors. As Julia Simpson, president of the WTTC, put it in an Associated Press report, "The largest economy in global tourism is heading in the wrong direction."
Buffalo, a city that has long relied on Canadian tourists to fill its hotels and shops during the summer, offers a vivid example of the current malaise. Despite a campaign featuring giveaways and a prominent sign declaring "Buffalo Loves Canada," the cross-border traffic simply hasn't materialized. In fact, for the first time in nearly two decades (excluding the pandemic years), more Americans traveled into Canada than Canadians made the trip south. Statistics Canada reported that in July 2025, road visits from Canada to the U.S. fell by 37%, while flights dropped by 26%. Buffalo's tourism board director Patrick Kaler lamented, "It is discouraging to see how the arrival of visitors declines due to simple issues of discourse."
It's not just Buffalo feeling the pinch. Major tourist destinations like Las Vegas, Los Angeles, and Washington, D.C., have all reported significant declines in foreign visitors this summer. Las Vegas, for example, saw tourist numbers drop by 12% in July compared to the previous year—even as casino revenues ticked up by 4%. Meanwhile, Washington, D.C., reported that 48 international groups canceled or changed plans to visit the city, with Destination DC estimating a 5.1% drop in visits. In response, the city launched a campaign to counteract what it calls "negative rhetoric" from the federal government.
The reasons for the slump are multifaceted, but the impact of Trump's policies is unmistakable. The return of hardline immigration bans, mass ICE raids, and a new $250 visa integrity fee for travelers from non-Visa Waiver Program countries (set to take effect October 1, 2025) have all contributed to an atmosphere of distrust. The cost of a U.S. visa for many travelers will soon reach $442, making it one of the most expensive in the world. This is particularly tough on travelers from countries like India, China, and Brazil, where the extra financial burden can be prohibitive. The U.S. Travel Association has warned that these higher fees and stricter processes will likely push potential visitors to look elsewhere for their travel adventures.
According to Tourism Economics, the U.S. is now the only country among 184 analyzed by the WTTC where spending by foreign tourists is expected to decline in 2025. In the first seven months of the year, three million fewer tourists arrived from Europe, Asia, and Africa. The Lindy Hop dance championship, which usually brings competitors from over 20 countries to New York, was postponed after dozens of international participants opted not to travel. Even the aviation sector is feeling the impact: major European airlines have reduced flights to the U.S., citing a lack of demand and the complications created by new immigration policies.
Canadian, Chinese, and Indian tourists—once pillars of the U.S. tourism industry—are now staying away in droves. Canadian visitors dropped by 25% compared to last year. Chinese tourists, affected by strained U.S.-China relations and ongoing trade tariffs, have decreased by nearly 14%. This reversal has had ripple effects across the country. In Buffalo, local governments have shifted their marketing efforts to attract more domestic tourists to make up for the lost Canadian business. In cities like Las Vegas and Washington, hospitality, retail, and transportation sectors are bracing for further declines.
For those in the industry, the situation is critical. American hotel chains and airlines have acknowledged million-dollar losses and falling stock prices. Companies like Delta Air Lines and American Airlines have cut operational capacity, while hotel giants such as Marriott, Intercontinental, and Hilton have lost market value. Some are considering early fleet retirements and reductions in hotel capacity to weather the downturn. Deborah Friedland, a specialist at Eisner Advisory Group, summed up the mood: "The sector faces several obstacles: rising costs, political uncertainty, and geopolitical tensions. And in tourism, perception is reality."
The economic consequences are stark. Analysts estimate that more than 230,000 jobs in the tourism sector are at risk, including over 120,000 positions in dining, accommodation, and entertainment. The WTTC projected potential GDP losses as high as $23 billion. The aviation sector has seen canceled flights, not just from foreign airlines but also due to a lack of passengers willing to face the new hurdles at customs and embassies. Small businesses that depend on international tourists are feeling the squeeze, and the once-mighty American tourism engine is sputtering.
Yet, amid the gloom, there are glimmers of hope. Some regions, like Wisconsin and the Door Peninsula, have enjoyed a good summer thanks to local tourism. American airlines have kept some international flights busy by selling premium class tickets to domestic travelers. Looking forward, experts are cautiously optimistic that major upcoming events—such as the 2026 FIFA World Cup and the United States' 250th anniversary celebrations—could help reignite interest in the U.S. as a travel destination.
Still, as the U.S. faces a crossroads, most agree that a sustainable recovery will require more than just big events. Policy changes that improve visa access and ease travel restrictions, along with a concerted effort to restore the country’s image as a welcoming destination, are seen as essential. Until then, the tourism industry must navigate the challenges of a new era—one shaped as much by perception as by policy.
The path forward may be uncertain, but as history has shown, American tourism has a knack for bouncing back when the welcome mat is rolled out once again.
