Las Vegas Joins Miami, Chicago, San Francisco, Houston, and More in Facing a Severe Decline in Hotel Bookings and Tourism: Canadian Travel Decline Contributing to Hospitality Struggles – New Updates That Will Shock You

Published on December 9, 2025

Las Vegas joins Miami, Chicago, San Francisco, Houston, and more in facing a severe decline in hotel bookings and tourism. This troubling trend is shaking up the U.S. hospitality sector. With fewer tourists visiting these once-thriving cities, the hotel industry is feeling the pinch. The Canadian travel decline is a key factor, with fewer Canadians crossing the border. This drop has had a ripple effect, impacting hotels, airlines, and tour operators. These cities, which relied heavily on international tourists, are now scrambling to adjust. The decline in Canadian travel is making the situation worse, forcing many to rethink their strategies. New updates on this crisis will shock you, as these tourism struggles grow more pronounced. As we dive deeper into this issue, it’s clear that the U.S. hospitality sector faces tough challenges ahead. The decline in hotel bookings and tourism is just the beginning.

In this article, we will explore the 10 cities most impacted by the decline in tourism, providing a breakdown of the statistics, reasons behind the drop in bookings, and the wider impact on hotels, airlines, and tour operators. This comprehensive analysis highlights not just the cities affected but also the ripple effects across the hospitality and travel industries.

Las Vegas, Nevada: The Strip Struggles to Stay Afloat

Las Vegas, known for its iconic casinos and vibrant nightlife, is facing a substantial drop in tourism in 2025. Hotel occupancy rates have fallen by 7%, a noticeable shift from previous years when the city saw strong growth. According to reports from STR and CoStar, the decline can largely be attributed to fewer international visitors, combined with a shift in the leisure market towards more affordable destinations. With prices rising across the city and the local economy adjusting to post-pandemic recovery, fewer tourists are flocking to the Las Vegas Strip.

Additionally, the decline in Canadian tourism has had a knock-on effect. A significant portion of Las Vegas’ visitors come from Canada, and with travel restrictions easing in other countries, Canadians are increasingly choosing more accessible destinations. Airlines such as Air Canada and WestJet have reduced flights to Las Vegas, contributing to a 5% drop in passenger arrivals.

Hotels like The Venetian and Caesars Palace have reported lower-than-expected bookings, with a 9% reduction in room occupancy during peak periods. Tour operators are adjusting their packages to focus on domestic markets, but recovery still seems far off. With business tourism also declining, largely due to corporate travel cutbacks, Las Vegas faces a tough road ahead.

New York City, New York: The Big Apple’s Bite Gets Smaller

New York City, once the undisputed leader of U.S. tourism, has also seen a modest decline of 4.5% in hotel bookings. The reasons are multifaceted. Rising costs, particularly in hospitality and accommodation, have driven away mid-range tourists. In addition, safety concerns and crowding have deterred some potential visitors. The trend is exacerbated by the decline in Canadian visitors. In 2025, Canadian arrivals dropped by 8.9%, affecting high-tourist cities like New York.

Airlines, including American Airlines and Delta, have responded by cutting back on transatlantic flights, leaving fewer options for international tourists. This has led to a 10% decrease in international visitor numbers to New York, especially from Europe and Canada. Hotels like The Ritz-Carlton New York and The Plaza have reported lower-than-expected bookings, especially outside of peak tourist seasons.

Tour operators are focusing more on domestic tourism, trying to cater to regional travellers, but it’s clear that New York City’s tourism boom is slowing down.

San Francisco, California: Tech Industry Slump Hits Hotel Bookings

San Francisco’s hotel market has experienced a 5% decrease in room nights over the last six months. Known for its tech-driven economy, the city’s reliance on business travel and conventions has left it vulnerable to the ongoing slowdown in the tech sector. Major companies have cut back on corporate travel, and tourist attraction visits are down as well. According to STR data, hotel occupancy is down by 6%, with the hotel RevPAR (Revenue Per Available Room) falling significantly.

As the city grapples with post-pandemic shifts in the workforce, remote working has led to a decrease in the number of business travellers attending conferences and trade shows in San Francisco. Moreover, the tech layoffs have affected tourism, as many tech employees, who often contribute to business travel, are no longer booking stays in the city. Hotels such as the Hotel Nikko and The Fairmont have reported a 10% drop in bookings.

This decline in tourism is compounded by the Canadian market’s softening, with fewer Canadians visiting San Francisco in 2025, leaving airlines such as United Airlines to scale back flight frequencies.

New Orleans, Louisiana: The Big Easy Faces Tourism Blues

New Orleans has always been a popular tourist destination, drawing people with its rich culture, music, and cuisine. However, in 2025, the city has witnessed a decline of 5% in overall tourism. The reason behind this decline can be traced to a combination of economic uncertainty and weather disruptions, which have discouraged visitors from travelling. The Gulf Coast is still recovering from the effects of past hurricanes, and many tourists are hesitant to visit areas that may be prone to storms.

Hotel bookings have also taken a hit, with several major hotels, including The Roosevelt and Hotel Monteleone, reporting lower-than-expected occupancy. Tourists have been seeking alternative destinations, and airlines like Delta and Southwest have reduced flights to New Orleans, further contributing to the decline in visitor numbers.

Additionally, the Canadian tourism slump is having an effect. The Canadian government’s tightened travel restrictions in early 2025 affected cross-border tourism, especially for cities like New Orleans, which are heavily reliant on international visitors.

Houston, Texas: Energy Sector Decline Dampens Tourism

Houston, Texas, traditionally a hub for business and energy tourism, has seen a 3.5% drop in hotel occupancy. As the energy sector struggles with fluctuating oil prices and layoffs, business travel has significantly decreased. According to data from STR, the oil downturn and the global economic climate have affected corporate demand for hotel rooms, leading to a reduction in high-value bookings.

While leisure tourism remains strong, corporate tourism accounts for a large percentage of hotel bookings in Houston, and with fewer energy conferences and business meetings taking place, hotels like The Four Seasons and The Houstonian are facing a dip in occupancy. Airlines, including United Airlines, are reducing flights to Houston, particularly international flights, contributing to a 5% reduction in international tourist arrivals.

The decline in Canadian tourism has also played a role, as many Canadian businesspeople frequently travel to Houston. Fewer flights from Canada have been a significant factor.

Orlando, Florida: Theme Parks Feeling the Impact of Rising Costs

Orlando, famous for its theme parks like Disney World and Universal Studios, has seen a 4.5% decrease in hotel bookings in 2025. While the parks remain popular, the rising costs of accommodation and park tickets have made it harder for families to afford a trip. Theme park ticket prices have surged, and many potential visitors are choosing more affordable destinations instead.

Hotels like The Waldorf Astoria Orlando and Disney’s Grand Floridian Resort & Spa have seen a 6% drop in bookings, with families cutting back on vacations due to inflationary pressures. Airlines such as JetBlue have reduced flight frequencies to Orlando, which further affects the number of incoming tourists. The Canadian market, which has historically been a strong feeder for Orlando, has also weakened, adding to the downturn.

Miami, Florida: Rising Costs and Seasonal Variability Take a Toll

Miami, a luxury hotspot, has experienced a 6% drop in hotel bookings in 2025. The city’s popularity with high-end tourists is being hampered by rising costs in both accommodation and dining. Hotels like The Fontainebleau and Eden Roc have been forced to offer discounts to fill rooms, which has further decreased their revenue per room.

Additionally, the decline in Canadian visitors, who traditionally make up a significant portion of Miami’s international clientele, has worsened the situation. Airlines have cut back on flights to Miami, and hotel occupancy is down by 8% compared to 2024. Tour operators have been forced to rethink their strategies, shifting focus towards domestic markets rather than relying on international visitors.

Chicago, Illinois: Business Travel Slowdown Hits the Windy City

Chicago, a major business hub, has seen a 4% drop in hotel bookings in 2025. The decline is attributed to the slowdown in corporate travel and reduced business conferences. Hotels like The Langham and The Peninsula have reported lower-than-expected occupancy, especially in the first quarter of 2025.

Chicago’s reliance on business tourism means that the reduction in international flights and cutbacks in corporate spending are particularly impactful. The city’s hotel sector is hoping that a return to more consistent events and increased international tourism will help reverse the trend, but the impact of Canadian visitor decline is undeniable.

San Diego, California: Surf and Sand but Fewer Tourists

San Diego, once one of the most popular coastal destinations in the U.S., has seen a 3% drop in hotel bookings. The city’s reliance on leisure tourism has been affected by competition from other California destinations like Los Angeles and Santa Barbara. According to STR data, the hotel occupancy rate has fallen by 5% in 2025.

The decline in Canadian tourism has played a role in the downturn, as many visitors from Canada have opted for other destinations closer to home. Airlines like Alaska Airlines have scaled back flights to San Diego, contributing to a decline in tourism. Hotels like Hotel del Coronado and The Lodge at Torrey Pines have reported a drop in bookings during off-peak periods.

Phoenix, Arizona: The Desert City Feels the Heat of Declining Tourism

Phoenix, Arizona, has experienced a 5% decline in hotel bookings in 2025. The city’s reliance on business travel, especially from industries like tech and healthcare, has led to a slowdown. With fewer conferences and business meetings, hotel bookings at venues like The Phoenician and The Scottsdale Resort have dipped. The Canadian market’s decline has also negatively impacted Phoenix, especially since many visitors from Canada come for conventions and meetings.

Why Canadians Are Choosing Not to Visit the US: An Unprecedented Decline in Cross-Border Travel

While the U.S. has always been a popular destination for Canadian tourists, recent trends are painting a worrying picture. The decline in Canadian visitors to the United States in 2025 has been felt across several U.S. cities, with Las Vegas, New York, and San Francisco among the hardest hit. This drop in tourism has left many in the travel industry concerned about the long-term implications for U.S. tourism. So, why are Canadians increasingly opting to stay home or visit other destinations?

Rising Travel Costs: A Major Deterrent for Canadian Tourists

One of the most significant factors contributing to the decline in Canadian tourists to the U.S. is the rising cost of travel. The combination of higher airfares, more expensive accommodations, and increased fees for activities has made the U.S. less affordable for many Canadian families and solo travelers. The Canadian dollar has also remained relatively weak compared to the U.S. dollar, further widening the price gap.

Travel costs have escalated significantly, with a 10-15% increase in airfare prices over the past year alone. This price increase, coupled with fluctuating exchange rates, has caused many Canadian families to reconsider cross-border vacations. For instance, Canadian families are opting for more budget-friendly options such as domestic holidays or exploring international destinations that offer better value for money.

Safety Concerns: A Shift in Perception

Safety has increasingly become a concern for international tourists visiting the U.S., including Canadians. Over the past few years, news reports of violent incidents and political unrest have raised fears among potential travelers. The rise in mass shootings and concerns over crime in major U.S. cities have led to a shift in perception about the safety of visiting.

A study conducted by Tourism Economics in 2025 showed that 28% of Canadian tourists cited safety concerns as a primary reason for their decision to travel elsewhere. Many Canadians, who traditionally viewed the U.S. as a safe and accessible vacation destination, are now reconsidering their choices due to growing concerns over personal safety. As a result, countries like Mexico, the Caribbean, and even European destinations have seen a rise in popularity as alternatives.

The Political Climate: Is It Alienating Canadian Tourists?

Another factor influencing the decline in Canadian tourism to the U.S. is the political climate. The policies of the U.S. government under its current administration, particularly regarding immigration and border control, have created friction with neighboring countries. Tighter border restrictions, increased scrutiny at customs, and even the visa process have made it more cumbersome for Canadians to visit the U.S. This has caused frustration for Canadian travelers, particularly those who have long enjoyed easy and hassle-free travel between the two countries.

Moreover, Canada’s progressive political stance on issues like climate change and immigration contrasts with the policies of the U.S., leading some Canadians to feel that their values are misaligned with those of the U.S. This shift in political climate has contributed to an emotional disconnect for some potential travelers, further pushing them toward more politically aligned destinations.

The Impact on US Tourism: A Severe Blow to Revenue

The decline in Canadian visitors has had a direct impact on the U.S. tourism industry, with several major cities experiencing significant revenue loss. According to the U.S. Travel Association, Canadian visitors contribute to nearly 20% of all international travel spending in the U.S. In 2025, this figure dropped by 12%, equating to a $4.5 billion loss for the U.S. economy.

The hospitality industry has been hit particularly hard, as hotels and resorts, which heavily rely on cross-border tourism, report lower occupancy rates and reduced revenue. Attractions like Disneyland and Universal Studios have seen a decline in Canadian ticket sales, leading theme parks to consider discounted ticket offers to attract the Canadian market back. Airlines, including Air Canada and WestJet, have also scaled back their flight offerings to the U.S., cutting routes and reducing frequencies, which has made travel to the U.S. even less convenient for Canadians.

Are Canadians Losing Interest in U.S. Travel Forever?

While the decline in Canadian tourism to the U.S. is concerning, it is not necessarily permanent. Several factors could reverse this trend in the future, such as improvements in political relations, better economic conditions, and a potential drop in travel costs. However, the longer the U.S. remains perceived as expensive, unsafe, or politically divided, the more likely Canadians will continue to turn their attention to alternative destinations.

The key question is whether the U.S. tourism industry can regain Canadian visitors as their primary audience or if this decline marks a long-term shift in travel behavior. The tourism industry may need to rethink its strategies to cater to Canadians, offering more affordable travel packages, ensuring safety and security measures, and fostering stronger diplomatic relations to win back their trust.

The Future of U.S. Tourism: Is Canada Turning Its Back on the U.S. for Good?

The decline in Canadian tourists to the U.S. is undeniable and is having a profound impact on the U.S. tourism industry. The rising cost of travel, safety concerns, and political differences have all played a role in pushing Canadians away from their southern neighbor. With many Canadians opting for closer, more affordable, and safer alternatives, the U.S. must take a hard look at how it can recover this crucial market.

It remains to be seen whether the U.S. can successfully reclaim its position as the go-to destination for Canadian tourists. The combination of rising costs, political tension, and safety concerns has led to a shift in Canadian travel habits, with some choosing to spend their money elsewhere. While not an irreversible trend, if the U.S. continues on its current trajectory, Canada may well be looking to other parts of the world for tourism – and the U.S. may lose out on a long-term, highly profitable market.