A summer that many in the U.S. travel industry hoped would bring a surge of international visitors has instead delivered a sobering reality: foreign tourism to the United States is in a marked decline, and the effects are being felt from the bright lights of Las Vegas to the quiet border towns of upstate New York. New data and candid voices from the tourism sector reveal a complex mix of policy, perception, and economic headwinds driving millions of would-be travelers to look elsewhere.
According to a recent report from Yahoo Finance, the downturn in international tourism that began earlier this year has only deepened as the summer of 2025 wore on. The IndexBox platform, which tracks industry data, shows a significant contraction in inbound travel figures for the first seven months of the year. Preliminary numbers from the National Travel and Tourism Office reinforce this picture, revealing a 1.6% drop in overseas visitors (excluding Mexico and Canada) from January through July 2025 compared to the same period last year—a decrease amounting to more than 3 million people.
The pain is widespread but not evenly distributed. Western European arrivals to the U.S. fell by 2.3%, with Denmark down a staggering 19%, Germany 10%, and France 6.6%. Asian markets have also cooled dramatically, with double-digit declines from Hong Kong, Indonesia, and the Philippines. Even travel from African countries has slumped. These trends aren’t just numbers—they’re reshaping events and economies on the ground. Organizers of the International Lindy Hop Championships, for instance, postponed their New York event after international competitors began pulling out, citing the feeling of being unwelcome in the current climate.
One of the most visible and immediate impacts has been in the once-reliable stream of Canadian visitors to the U.S. For years, towns like Buffalo, New York, could count on a summer influx from across the border. But this year, the wave never arrived. In fact, for the first time in nearly two decades, more Americans drove into Canada in June and July than Canadians drove into the U.S., according to Statistics Canada. July alone saw a 37% year-over-year drop in Canadian residents returning from the U.S. by car.
Las Vegas, a perennial favorite for Canadian tourists, is feeling the pinch acutely. Steve Hill, CEO of Visit Las Vegas, spoke candidly with reporters in Vancouver this week. "I have to explain things to folks as I really see it," Hill said, according to VictoriaNow. "That has more credibility than skirting around it or glossing over it." He revealed that the number of Canadians visiting Las Vegas has plunged 25% so far this year compared to last, dropping from a typical 1.4 million annual visitors to an estimated 1,150,000 in 2025—a loss of about 350,000 Canadians.
Hill noted that while the decline is steep, "it could have really fallen off a cliff and visits by Canadians could have been down by 50%." Still, the loss stings. Canadians represent the largest international market for Las Vegas, and while they account for only 3% of all visits, their longer stays and higher spending make them disproportionately important to the local economy. The reasons for the downturn, Hill explained, are tied to a broader 'elbows up' movement among Canadians, who are boycotting American destinations, goods, and services in response to U.S. tariffs and trade tensions under President Donald Trump's administration. As Hill put it, "What it will take (for Canadian visitation to rebound) is our federal governments getting along and being friends again."
To stem the tide, Visit Las Vegas launched a sales mission in Vancouver in late August, meeting with travel agents and suppliers like Air Canada Vacations and WestJet Vacations. The aim, Hill said, was to encourage Canadians to return, not out of desperation but as a proactive gesture. WestJet, for its part, plans to resume seasonal non-stop flights between Kelowna and Las Vegas starting October 30, after suspending them early last season due to the trade war. The hope is that special events—like the Formula 1 Las Vegas Grand Prix in November, new seasons of Las Vegas Golden Knights NHL hockey and Las Vegas Raiders NFL football, and concerts by stars such as Bruno Mars and Dolly Parton—will lure Canadians back.
But it’s not just international visitors who are staying away. Overall tourist traffic to Las Vegas was down 11% in June 2025 compared to June 2024, a drop attributed largely to fewer Americans making the trip amid a broader economic downturn. As Hill observed, "Vegas very much [is] the land of discretionary spending." The city and U.S. travel industry groups are now lobbying Washington to address tariffs and federal policies that have hurt tourism. "The tourism industry is being heard," Hill said, "but there's been no impact on tariffs." Still, he remains optimistic: "Right now, this is a downturn, not a crisis (like COVID or the great recession of the late 1990s)... I'm not happy with this downturn, but I think it will be short and shallow."
Elsewhere in the U.S., some destinations have managed to buck the trend—at least with domestic travelers. Wisconsin’s Door County, for example, reported strong business from loyal Midwest visitors, and major U.S. airlines noted that American passengers booking premium fares have helped fill international flights. The Federal Aviation Administration even prepared for what was expected to be the busiest Labor Day weekend in 15 years as of early September 2025. But these bright spots are offset by cautious forecasts: Tourism Economics predicts the U.S. will see 8.2% fewer international arrivals in 2025, and the World Travel & Tourism Council projects the U.S. will be the only country among 184 studied to experience a decline in foreign visitor spending this year—a clear sign, they argue, that the global appeal of the United States is slipping.
The reasons for the downturn are many, and not all are within the control of the travel industry. Policy decisions, economic uncertainty, and shifting perceptions about the U.S. have all played a role. For communities and businesses that rely on international tourism, the pain is real and immediate. Yet, as Steve Hill and others maintain, there is hope that the bonds—whether cultural, economic, or simply the lure of American attractions—will prove resilient. For now, though, the numbers speak for themselves, and the U.S. tourism sector is left to navigate a challenging season with cautious optimism and a watchful eye on the horizon.
