The US experienced its steepest annual decline in international tourism since the Covid-19 pandemic, with new 2025 figures revealing that millions of foreign travellers chose to stay away, according to a CNN report.
The downturn comes at a time when global travel demand is increasing. Industry analysts say the slowdown appears linked not to a worldwide crisis but to growing concerns around political rhetoric, rising travel costs, and perceptions of instability in the US.
Millions of Visitors Missing in 2025
According to newly released tourism data, approximately four million fewer international visitors travelled to the US in 2025 compared with the previous year. Total foreign visitor spending also dropped sharply, declining by more than $8 billion despite higher average spending per traveller.
The 5.5% decrease represents the sharpest year-over-year decline in international tourism in nearly two decades outside the pandemic period. Analysts say the fall exceeded losses seen during the 2008 financial crisis.
Political and Economic Factors Behind the Decline
Experts point to multiple factors behind the downturn, including immigration concerns, tariff disputes, geopolitical tensions, and uncertainty over travel policies.
International visitors have also cited rising airfare costs linked to conflicts in the Middle East and concerns created by images of crime and unrest circulating internationally.
Juliette Kayyem warned that America’s global image may be weakening.
“We used to be a country that others wanted to emulate. That narrative no longer exists.”
She argued that America’s “soft power” — influence through culture, values and diplomacy — has weakened over time.
Economic Impact Raises Concerns
Tourism economists warned that the decline could carry broader economic consequences. Adam Sacks reportedly described certain policies as “pennywise and pound foolish,” suggesting that short-term measures may hurt long-term economic growth.
The World Travel and Tourism Council estimates that visitor spending in the US dropped significantly in 2025 compared with the previous year.
Canada Leads the Drop in Foreign Visitors
The decline stands in sharp contrast to global tourism trends. Worldwide international travel increased in 2025, with millions more people travelling internationally than in the previous year.
However, many travellers chose destinations outside the US.
Canadian visitors accounted for the largest share of the drop, although visitor numbers also declined from countries including Germany, France, India, Australia and China.
Some travellers cited political tensions and broader geopolitical developments as reasons for avoiding travel to the US.
Tourism Businesses Feel the Pressure
Business owners in tourism-heavy regions such as Seattle, Los Angeles and Orlando reported lower bookings, especially from Canadian travellers.
In Santa Monica, tour operators reported revenue declines and workforce reductions as tourism demand weakened.
Meanwhile, Walt Disney World also reported softer international attendance and lower hotel occupancy.
Can Major Events Revive Tourism?
Despite expectations of a temporary boost from events like the FIFA World Cup, analysts believe a full recovery could still take years.
The US National Travel and Tourism Office projects international arrivals may not surpass pre-pandemic levels until 2029, raising questions about the future of America’s tourism industry and its global reputation.
