Aug 19, 2025
While tourism is booming in many countries, the U.S. is falling behind. A recent report by the World Travel & Tourism Council (WTTC) found that the U.S. is the only country forecasted to see a decline in international visitor spending in 2025. In March, international travel to the U.S. fell 14% compared with the same period last year, according to the U.S. Travel Association.
Tourism from Canada has had the sharpest decline — Canadian visits in May decreased by 38% by car and 24% by air compared to the same month in 2024, according to the U.S. National Travel and Tourism Office (NTTO). Travel from Western Europe is also declining, falling nearly 5% in 2025.
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“While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign,” said Julia Simpson, president and CEO of WTTC.
And the price tag is staggering. In total, this decrease in tourism could cost the United States an estimated $29 billion, and experts warn that number could grow if policies don’t change.
How are Trump's policies impacting international tourism?
President Donald Trump’s policies and rhetoric have had a measurable impact on international tourism to the U.S. While he’s not the sole cause of the current slowdown, some of his decisions have contributed.
The most recent concern is Trump’s proposed $250 visa integrity fee, which would apply to tourists from dozens of countries, including many of America’s allies. Though intended to combat overstays and visa fraud, travel industry groups say it will instead deter visitors.
“The new visa integrity fee increases the upfront costs of visiting the U.S. 144%, while doing nothing to lower interview wait times,” said Erik Hansen, senior vice president of government relations at the U.S. Travel Association.
Canada, historically a top source of tourism, has pushed back against comments and tariffs. After Trump claimed the U.S. subsidizes Canada and said they should become the "51st state”, then-Prime Minister Justin Trudeau and other Canadian officials began urging citizens to explore destinations elsewhere and avoid buying U.S. products. Heightened border security and even detentions of Canadians at the U.S. border have likely contributed to this decline.
Trump's treatment of global allies — including controversial comments about NATO and the Ukrainian president, along with the missile strikes in Iran — has further damaged the U.S.'s image. Tariffs have also strained relationships with China, Canada and the EU. International tourists now report feeling less welcome and more anxious about entering the country.
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Can U.S. tourism bounce back?
Tourism is a vital part of the U.S. economy, contributing more than $2 trillion annually and supporting roughly nine million American jobs, according to the International Trade Administration.
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While the country as a whole isn’t reliant on tourism to the same degree as some smaller nations, local economies absolutely are — especially cities such as Las Vegas, Orlando and towns along the Canadian and Mexican borders.
Las Vegas, for example, experienced an 11.3% decline in visits in June 2025 compared to the same month in 2024. Towns near the Canadian border are also reporting massive decreases in tourism.
To revive tourism, industry experts say the U.S. needs to make policy changes. Those include:
- Eliminate unnecessary visa fees and avoid adding new ones.
- Reduce visa wait times, which can stretch over a year in some countries.
- Invest in global marketing campaigns to repair America’s image as a destination.
- Ease border entry experiences, especially for travelers from trusted nations.
- Strengthen relationships with international allies, especially top tourism sources such as Canada, the U.K. and Germany.
Individual towns and businesses can take their own steps to improve local tourism by exploring ways to attract domestic travelers, investing in local events and partnering with airlines or travel platforms to promote off-season travel and lesser-known destinations. Offering incentives such as discounted lodging, dining packages or loyalty programs can also help attract more visitors and keep tourism dollars circulating locally.
However, if national policies don’t shift, the U.S. risks losing ground in the long term, not just in revenue, but also in cultural exchange, diplomacy and global influence.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
