Massachusetts, Texas, Florida, New York Experiencing Massive Tourism Fall Even Now as Rising Travel Costs, New Advisories and Natural Disasters Loom US

Published on July 23, 2025

By: Tuhin Sarkar

As of mid-2025, U.S. tourism is facing a significant downturn, with states like Massachusetts, Texas, Florida, and New York grappling with a series of challenges that threaten their once-thriving tourism industries. Rising travel costs, new international travel advisories, and the aftermath of natural disasters are reshaping the landscape for both international and domestic travelers. These states, which have long been top tourist destinations, are now struggling to maintain visitor numbers as consumers become more cautious with their travel plans.

In Massachusetts, while the 50th anniversary of the film “Jaws” brought a short-term boost, the state is feeling the ripple effects of rising costs and shifting travel preferences. Texas, hit by severe flooding during the July 4 weekend, has seen a sharp drop in tourism, particularly in areas dependent on river-based activities. Meanwhile, Florida, a perennial favorite for international tourists, is facing a sharp decline in Canadian visitors, driven by political tensions and tariffs. New York, a global tourism hub, is also witnessing fewer foreign arrivals, partly due to growing concerns over U.S. immigration policies and rising safety fears.

These challenges are compounded by higher airfare and accommodation costs, which have made travel to these popular destinations more expensive and less appealing. As tourism-dependent economies in these states brace for a prolonged downturn, the need for recovery strategies has never been more urgent. This article explores the current situation and the ongoing efforts to mitigate the impact of this tourism fall.

Tourism in the United States is grappling with a steep decline in 2024-2025, sending shockwaves across industries reliant on global visitors. From soaring costs and changing travel patterns to economic instability and safety concerns, the tourism detoriation is forcing businesses, policymakers, and tourists alike to confront a new reality. But what are the root causes of this sudden downturn, and what can be done to stem the tide? The answers to these questions have never been more urgent, as the tourism sector fights for survival in an increasingly volatile world.

The sharp fall in U.S. tourism is already being felt by airlines, hotels, and tourist attractions. Airports are experiencing congestion and delays, while hotels are adjusting to rising booking cancellations, leading to potential revenue losses. But it’s not just the industry feeling the pain. Local economies that depend heavily on tourism are seeing job losses, decreased income, and lowered economic growth. The crisis has forced many to rethink how they approach recovery, and fast.

The U.S. tourism sector is grappling with an undeniable downturn in 2025. With rising travel costs, political unrest, severe weather events, and shifting consumer preferences, several states have been hit hard, each with unique challenges and impacts. Despite the national downturn, some states are attempting to turn the tide with targeted recovery strategies. Let’s dive deep into the issues facing the tourism industry across the country, analyze the contributing factors, and explore what’s being done to reverse the decline.

Texas: A State Devastated by Flooding

Texas, a state known for its vast landscapes and booming tourism sector, has been devastated by flash floods. Severe weather during the July 4 weekend disrupted tourism, especially in Central Texas, where tubing and river-outfitting businesses in towns like New Braunfels and San Marcos took a heavy blow. These businesses typically thrive in July, a peak month for tourism, but sales have plunged by more than 60%. Many of these businesses operate seasonally, relying on summer months to generate most of their revenue. The severe flooding not only affected businesses but also disrupted travel plans, leaving tourists with canceled activities and hotels facing the ripple effects of lost revenue.

While the tourism sector is slowly recovering from the immediate impacts of flooding, the long-term effects could linger. Texas may need to reassess its emergency response strategies, flood-prevention measures, and tourism infrastructure to ensure that future disasters do not have the same devastating effects.

Florida: The Decline of Canadian Visitors

Florida, a state that depends heavily on international tourism, is seeing a sharp decline in Canadian travelers. Political tensions between the U.S. and Canada, coupled with rising tariffs, have made travel to Florida less appealing. Aviation analytics firm OAG reports that bookings for Canada-to-U.S. flights from April to September 2025 are down by more than 70% compared to the same period in the previous year. For a state that typically sees millions of visitors from Canada, these declines are worrying.

Florida’s tourism industry faces significant challenges in trying to recover these lost visitors. International tourism has been a critical driver of Florida’s economy, and the state is likely to feel the economic sting of this downturn. Florida’s recovery will hinge on finding ways to repair international relations, promote regional tourism, and offer competitive pricing that could entice travelers back to its beaches and theme parks.

New York & New Jersey: The World Cup Boost

While other states are grappling with the downturn, New York and New Jersey are preparing for a boost thanks to the 2026 FIFA World Cup. This major sporting event is projected to bring in more than 1.2 million tourists to the region and deliver a significant $3.3 billion economic boost. The World Cup is expected to increase demand for accommodations, travel services, and entertainment, providing a welcome boost to the local tourism economy.

For New York and New Jersey, the focus is on maximizing the potential of the World Cup by preparing infrastructure, enhancing visitor experiences, and ensuring that tourists feel welcomed and safe. The World Cup presents a unique opportunity for both states to not only recover losses from the current fall but to attract long-term tourism by showcasing their cultural attractions, sporting events, and entertainment hubs.

California: A Projected Decline Amid Economic Challenges

California, home to some of the most iconic tourist destinations in the world, including Los Angeles, San Francisco, and Napa Valley, is facing a projected decline in visitation in 2025. Overall visitation is expected to dip by 1%, while international visitation is predicted to decline by a concerning 9.2%. The state attributes this downturn to a combination of federal economic policies and an impending “Trump Slump” that is affecting international traveler sentiment.

The high cost of travel, along with concerns over U.S. immigration policies, is pushing tourists to reconsider their travel plans. Visitors are increasingly opting for cheaper, less politically turbulent destinations. California, long a global leader in tourism, will need to revamp its tourism marketing strategies, focus on sustainable tourism, and promote local experiences to remain competitive.

New York City: Declining Foreign Arrivals

New York City, the tourism capital of the U.S., is feeling the effects of a significant drop in foreign arrivals. In the first half of 2025, international tourists have been deterred by safety concerns and growing fears around U.S. immigration policies. New York, which usually thrives on a robust international tourist base, has seen a reduction in travelers from Europe, Asia, and South America.

The city, which attracts millions of international visitors each year, has relied heavily on foreign tourists, especially from high-spending markets like the UK, China, and Brazil. The decline in international tourism has left many hotels, restaurants, and cultural institutions grappling with reduced bookings and revenue. New York’s tourism recovery will depend on addressing safety concerns, improving visa processes, and rebuilding its image as a welcoming and exciting destination for all types of travelers.

Massachusetts: “Jaws” Anniversary Boost

In contrast to the overall decline, Massachusetts has seen a spike in tourism driven by the 50th anniversary of the iconic film “Jaws.” Martha’s Vineyard and Cape Cod have experienced a surge in visitors, with hotel occupancy rates reaching nearly 100% during related events. This is a prime example of how leveraging local culture and iconic events can stimulate tourism and revitalize local economies, even during a national downturn.

For Massachusetts, the challenge now is sustaining this interest beyond the anniversary celebrations. The state’s tourism board is focusing on diversifying the visitor experience, promoting its rich history, natural landscapes, and cultural events to ensure long-term success. If successful, Massachusetts could serve as a model for other states looking to harness cultural heritage to boost tourism.

Wisconsin: Door County’s Seasonal Tourism

Wisconsin’s Door County, known for its natural beauty and outdoor recreation, has seen a steady flow of visitors. However, like many other states, it’s heavily reliant on seasonal tourism, particularly from Memorial Day to Labor Day. The area typically draws over 2.1 million visitors annually, but the tourism sector remains vulnerable to fluctuations in national trends, including the current decline.

Door County’s seasonal businesses are critical to the region’s economy, but they face challenges in maintaining a steady flow of tourists during the off-season. Local efforts to diversify the visitor experience and promote year-round attractions will be essential for stabilizing the region’s tourism industry.

Tennessee: A Top Travel Destination

Tennessee ranks as the 11th-most visited state in the U.S., with tourism contributing billions to the state’s economy. In 2019, Tennessee set a record with 126 million visitors, generating $23.3 billion in tourism-related spending. However, the current downturn is affecting tourism numbers, particularly as rising travel costs deter potential visitors.

Tennessee’s tourism board has responded by increasing its marketing efforts, focusing on its diverse attractions, including the music scene in Nashville, historical sites, and the natural beauty of the Great Smoky Mountains. As domestic travel continues to be a key growth area, Tennessee is likely to see a more stable recovery by promoting regional travel and affordable experiences.

Key Takeaways

The U.S. tourism industry is experiencing a stark contrast between regions. While some states like New York, New Jersey, and Massachusetts benefit from major events or anniversaries, others like Florida, Texas, and California struggle with political tensions, rising travel costs, and natural disasters. The national tourism decline is forcing the tourism sector to rethink its strategies, with a focus on local experiences, sustainability, and cultural heritage.

International visitors are wary of U.S. immigration policies, political rhetoric, and rising costs. As a result, the tourism industry needs to pivot quickly, adjusting marketing campaigns, improving local infrastructure, and focusing on domestic travelers who are looking for affordable, immersive experiences.

Recovery Strategies and Future Outlook

State tourism boards and local businesses must embrace innovation, adapting to new consumer preferences and offering affordable, eco-friendly travel options. By diversifying attractions, promoting unique regional experiences, and ensuring safe, welcoming environments, the U.S. tourism industry can pave the way for a successful recovery.

The Unprecedented Economic Impact of Rising Costs

The U.S. travel market is facing an uphill battle as the country contends with soaring inflation and rising travel costs. Airfares have skyrocketed, with international flights to the U.S. seeing a 17% increase from last year. At the same time, hotel rates in key tourist destinations like New York, California, and Florida have risen dramatically, squeezing out travelers who previously would have visited during the summer months.

In an era when travelers have become more budget-conscious, these price hikes have significantly deterred tourists, both domestic and international. While inflation has made daily expenses more expensive, the increased cost of flights and accommodation makes it impossible for many people to travel as they once did. Many families are opting for cheaper, closer destinations, while international travelers are looking to alternative countries with lower travel expenses.

But it’s not just the prices that are deterring people. Changing consumer behavior is adding fuel to the fire. Remote work and digital nomadism are reshaping how people approach vacations. More individuals are choosing off-season travel, looking for shorter trips to destinations closer to home. Meanwhile, the demand for “experiential” travel—where the focus is on unique, local experiences rather than sightseeing or traditional tourist attractions—is growing, and the U.S. has struggled to adapt quickly enough to meet these evolving demands.

The Influence of Geopolitical Instability

Political and safety concerns have contributed to the decline in international tourism to the United States. From rising global tensions to changes in U.S. immigration policy, international visitors are now reconsidering their travel plans. Strained diplomatic relations with countries in Europe and Asia have created uncertainty about the safety of traveling to the U.S. At the same time, stricter border control policies, including new visa and travel restrictions, are dissuading many foreign tourists from visiting the country.

According to recent reports, international visits to the U.S. have fallen by 11.6% this year alone, with a significant drop from countries like China, the UK, and Germany. This decline in international tourism, especially from high-spending tourists, is having a profound impact on the economy, which relies on foreign visitors for billions of dollars annually.

The Strain on U.S. Airports

The U.S. aviation industry is facing serious challenges as airlines continue to grapple with flight cancellations, delays, and overbookings. With rising fuel costs, airport congestion, and an overburdened air traffic control system, airlines have been forced to scale back routes and increase ticket prices. Major airports in New York, Los Angeles, and Miami have seen significant drops in international arrivals, while domestic travelers have begun to rethink flying altogether due to inconvenience and cost.

Moreover, the growth of alternative travel modes, like high-speed trains in Europe and Asia, is enticing travelers away from U.S. flights, further eroding the aviation sector’s dominance in international tourism. Meanwhile, U.S. airports are struggling with outdated infrastructure that cannot accommodate the growing demand for efficient, stress-free travel. Airports, particularly in major tourist cities, face growing pressure to modernize quickly or risk alienating future visitors.

Hotel Industry Faces Mounting Challenges

The U.S. hotel sector is also feeling the effects of the tourism slump, as bookings fall sharply in key cities like New York, San Francisco, and Los Angeles. Hotels, especially in major metropolitan areas, are seeing a significant increase in cancellations, with many tourists opting for vacation rentals or avoiding expensive accommodations altogether. Additionally, inflation and rising operating costs are forcing hoteliers to raise room rates, which is further alienating potential visitors.

For hoteliers, the ability to pivot quickly and offer targeted, affordable packages for different demographics will be key to staying afloat. Luxury hotels are seeing steady traffic, but mid-tier and budget hotels are facing a much tougher road to recovery. Many properties are beginning to explore creative ways to boost their appeal, including offering extended-stay discounts, promoting wellness tourism, and focusing on local experiences rather than just traditional amenities.

Solutions for Recovery: What’s Being Done?

While the challenges are significant, there are several strategies in play that could help the U.S. tourism sector recover. One key strategy involves targeting local tourism. U.S. cities are beginning to focus more on attracting regional travelers, with marketing campaigns highlighting nearby destinations, outdoor activities, and local cultural experiences. By appealing to local audiences, states hope to mitigate the drop in international arrivals while encouraging domestic travel.

In addition, cities are investing in infrastructure upgrades and smart technology to streamline the visitor experience. Innovations like contactless check-ins, mobile ticketing, and the expansion of Wi-Fi and 5G networks at major airports and tourist spots are designed to enhance the convenience of travel for both international and domestic tourists.

Targeted marketing campaigns are also becoming a critical tool in recovery. State tourism boards, in collaboration with the U.S. Travel Association, are developing ads and initiatives to promote U.S. destinations to both international and domestic travelers. The focus is on the emotional aspects of travel—connecting travelers with the joy and excitement of exploration and reminding them of the unique experiences that only the U.S. can offer.

The Path Forward: A Slow but Steady Recovery

Recovery won’t be easy, but the U.S. travel industry is resilient. While the decline in international tourism has been deeply damaging, U.S. destinations can still bounce back by shifting their strategies, embracing new trends, and focusing on sustainable tourism practices. The key lies in offering a personalized, hassle-free experience that resonates with changing consumer preferences.

With smart policies, better infrastructure, and innovative marketing, the U.S. can rebuild its reputation as a premier global travel destination. The road ahead will be long, but with urgency, adaptation, and a focus on new consumer needs, the recovery process can begin now.