Las Vegas, Seattle, Portland, and Maine—places that have long counted on a steady stream of international visitors—are now grappling with a tourism crisis that’s sending shockwaves through their local economies. The culprit? A dramatic decline in Canadian tourists, compounded by broader international hesitancy to visit the United States amid strained diplomatic relations, steep travel costs, and a political climate that’s left many would-be visitors uneasy.
According to the Las Vegas Convention and Visitors Authority (LVCVA), visitor volume in Las Vegas dropped a staggering 11.3% year-over-year in June 2025. Convention attendance in the city, a major economic driver, was down 10.7% compared to June 2024. Hotel room inventory shrank by 2.3%, the average daily rate fell by 6.6%, and revenue per available room (RevPAR) plummeted by 13.8%. Room nights occupied? Down 9.7%. Altogether, Las Vegas saw about 3.1 million fewer visitors than usual—a number that’s hard to ignore in a city built on hospitality and entertainment.
This slump, as LVCVA officials put it, reflects a “broader backdrop of persistent economic uncertainty and weaker consumer confidence.” June was also a slower month for conventions, which only deepened the downturn. But these aren’t just local woes. NBC News reports that the empty hotel rooms and half-filled casinos in Las Vegas are “casting a pall” over the entire U.S. tourism industry, raising alarms about what lies ahead for other destinations.
Andrew Woods, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas, told NBC, “Las Vegas has historically been the bellwether for the rest of the country when the business cycle slows down.” If Vegas is hurting, other cities should be watching their own numbers closely.
Meanwhile, U.S. border cities such as Seattle, Portland, and especially Maine are facing their own crisis. In July 2024, only 277,000 people entered Maine from Canada—a 28% drop compared to the previous July, according to data reported by local tourism officials. July marked the sixth consecutive month of reduced Canadian border crossings into Maine, a trend that’s left businesses and government leaders deeply concerned. Car arrivals from Canada alone plummeted by 37% in July 2024 compared to July 2023, following a 33% decrease in June. Air travel from Canada to the U.S. was also down by 26% in July 2024.
The ripple effect is evident in other northern cities. Seattle saw a 27% decrease in Canadian tourists, and Portland experienced an 18% drop between January and June 2024. According to Tourism Economics, more than 20 cities across the northern United States reported at least a 10% decline in Canadian visitors during the first half of 2024. These numbers underscore just how vital Canadian tourists are: historically, they represent nearly a quarter of all foreign travelers to the U.S., spending an estimated $20.5 billion in 2024 alone.
The reasons behind this dramatic downturn are complex, but several factors stand out. First, the political climate has shifted. The new U.S. presidential administration has introduced tariffs on longtime allies—including Canada—while also tightening border regulations. Policies and rhetoric that raise questions about the U.S.’s view of its neighbors have created a climate of uncertainty and, in some cases, outright resentment. Las Vegas Mayor Shelley Berkley told NBC, “Canadian tourists, which were the Silver State’s largest international market, have been staying away in droves, turning a tourism torrent to a drip.”
This sentiment is echoed in travel data. Air passenger traffic from Canada to Las Vegas is expected to fall by 18.5% in 2025 compared to 2024, according to Ailevon Pacific Aviation Consulting. The World Travel & Tourism Council (WTTC) forecasts a $12.5 billion decline in U.S. international tourism spending in 2025, with total travel spending potentially dropping to less than $169 billion from $181 billion in 2024. That’s a dramatic fall from the $217.4 billion earned at the industry’s peak in 2019. WTTC President Julia Simpson blamed the Trump Administration’s “tourist detentions and steep tariffs” for the downturn in international tourism, a prediction that now seems painfully accurate for cities like Las Vegas.
It’s not just Canadian travelers who are staying away. A recent poll of South Asian nations found that the United States has “lost its appeal” since the new administration took office. Even Mexico, another key tourism market, is showing signs of pulling back. “We have a number of very high rollers that come in from Mexico that aren’t so keen on coming in right now,” Mayor Berkley noted. “And that seems to be the prevailing attitude internationally.”
Back in Maine, the impact of these trends is palpable. The state, with its picturesque coastline and outdoor attractions, has long been a favorite summer destination for Canadians. July and August are typically the busiest months, but the sharp drop in border crossings has left local businesses scrambling. For six straight months, the number of Canadians crossing into Maine has declined, with no clear end in sight. The most substantial drop is among those who drive across the border—a group that’s historically been the backbone of Maine’s tourism industry.
Communities along the border aren’t taking this lying down. Efforts to revive cross-border tourism are underway, including collaborative marketing campaigns, cultural exchanges, and local initiatives designed to reassure Canadians that the U.S. remains a welcoming place. Las Vegas Convention and Visitors Authority CEO Steve Hill remains optimistic, telling NBC, “That’s a long-term relationship, and we’re going to figure that out.” He added, “We’ve had crises and we have recovered from crises and this is just not that. It is a downturn.”
Yet, there’s no sugarcoating the reality: the damage to local economies is significant, and recovery may take years. In the meantime, U.S. cities that once thrived on international tourism are being forced to adapt. Some are rethinking their marketing strategies, others are lobbying for changes in national policy, and many are simply hoping for a thaw in diplomatic relations that could restore the flow of visitors.
The story of U.S. tourism in 2025 is one of uncertainty, adaptation, and resilience. As border cities and tourism hubs like Las Vegas work to rebuild trust and attract international visitors, the lessons of this downturn will shape the industry for years to come. For now, the focus remains on repairing relationships and ensuring that the United States can once again be seen as a top destination for travelers from around the world.
