Aug 17, 2025
With over 825 miles of sandy beaches, Florida’s reputation as the perfect summer holiday destination has always been considered unshakeable. But this year, some business owners along the coast say the typical summer boom failed to materialize.
"Spring Break, really never happened for us, and then the summer swing, never happened for us," says Kirsten Smail, a marine educator for Dolphin Quest told ABC Action News. “It’s a ghost town,” confirmed Amber Simmons, General Manager at Pirates Pub & Grub. "It's the slowest year we've had since 2020."
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Angela Wilson from Mad Beach Watersports told reporters business is down as much as 30% for some of her peers.
However, from a bird’s eye view, the Sunshine State’s tourism economy seems as robust as ever. The state welcomed 41.2 million visitors in the first quarter of the year, which is flat from the same quarter last year, according to Visit Florida data.
The disconnect between these headline figures and the experience of business owners comes into sharper focus when you zoom in on the changing tourism mix, not just in Florida but across the country.
Changing tourism mix
A key factor dragging business for some Gulf Coast tourist destinations is the lack of foreign arrivals — particularly from Canada. Canadian visitors, long a lifeline for Florida’s Gulf Coast, are pulling back as diplomatic tensions rise and border crossings plunge. As the Trump administration ramps up its trade war and diplomatic spat, the so-called “snowbirds” from the north are changing their travel plans.
The number of Canadians taking road trips across the U.S. border dropped 37% year-over-year in July, according to Statistics Canada. Air travel was down 26% over the same period. This was the seventh consecutive month of declining tourism from Canada.
As a result, U.S. tourism is becoming more domestic. Nearly 92% of arrivals in Florida during the first quarter were U.S. residents, according to Visit Florida. This could be why some spots that rely heavily on Canadian snowbirds and international travelers are seeing a steep decline in business while the headline numbers for the state’s visitors remains robust.
However, arrivals are only part of the story. Spending is another key factor that could explain why some Florida businesses are facing a dismal summer.
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Slashed travel budgets
As U.S. tourism becomes more domestic, it becomes more sensitive to the domestic economy. Unfortunately, the local economy continues to struggle with persistent inflation and the highest number of layoffs since the pandemic, according to Challenger, Gray & Christmas.
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American consumers are spending less on big-ticket travel items - such as airfare and lodging - in the first few months of 2025 compared to the previous year, according to the Bank of America.
Nearly 31% of U.S. adults said a combination of their personal financial situation and their gloomy outlook for the national economy is having a negative impact on their travel plans this summer, according to Morning Consult.
Squeezed budgets could explain why some beach towns feel like ghost towns even though overall visitor numbers remain strong.
What it means for your wallet
If you and your family are feeling more optimistic than the average American consumer, this slump could actually be an opportunity. Tourism officials might tout steady visitor numbers statewide, but local businesses in beach towns are hungry for customers — and that usually translates into discounts.
Travel experts say to look for package deals on hotels, reduced charter rates for fishing or boat trips, and off-peak pricing for attractions in places like Clearwater, St. Pete Beach, and Panama City. Restaurants and small operators in particular may be more willing to offer promotions or group discounts to lure back business.
Another tip: Watch the winter season. December to May is traditionally peak time for Canadian snowbirds, but if cross-border travel remains depressed, that window could suddenly become a bargain season. Travelers with flexible dates might be able to snag cheaper rooms or upgrades that would normally be booked solid.
The bottom line: While Florida’s big tourism machine may keep humming, pockets of the state are quietly struggling. For savvy travelers, that could translate into savings.
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
