Miami Joins Orlando, Chicago, Atlanta, New Orleans, Los Angeles, San Francisco, and Las Vegas in Struggling with Reduced Canadian Visitors, The Decline of U.S. Tourism Explained

Published on December 1, 2025

Miami Joins Orlando, Chicago, Atlanta, New Orleans, Los Angeles, San Francisco, and Las Vegas in Struggling with Reduced Canadian Visitors. The Decline of U.S. Tourism Explained.  In 2025, U.S. tourism is facing an unprecedented challenge, and Miami, along with Orlando, Chicago, Atlanta, New Orleans, Los Angeles, San Francisco, and Las Vegas, are feeling the impact. These iconic cities, known for their bustling tourism industries, are struggling with a sharp decline in Canadian visitors, historically a key source of international tourism for the U.S. This reduced Canadian presence has sent shockwaves through the tourism sector, affecting everything from hotel bookings to local economies.

The reasons behind the drop are multifaceted, with Canada traditionally contributing a significant portion of international tourists to the U.S. With Canadians less inclined to visit due to higher travel costs, stricter immigration policies, and political tensions, U.S. cities that heavily rely on these visitors are now facing a crisis. Miami, for example, has seen a noticeable decline in the number of Canadian tourists frequenting its beaches, restaurants, and luxury hotels, which once thrived on this demographic. Similarly, Los Angeles and San Francisco have experienced dwindling numbers at major tourist attractions like Hollywood and the Golden Gate Bridge, leaving businesses with fewer customers and significantly reduced revenue.

This reduced flow of visitors is not just a temporary dip but a trend that threatens the long-term viability of tourism in these cities. The decline in Canadian visitors is impacting key sectors, including hospitality, retail, and entertainment, which are heavily dependent on international tourism. For instance, Las Vegas, once a hotspot for Canadian travellers, has reported a 20% decrease in visitors, resulting in layoffs within the casino and hospitality sectors.

The decline of U.S. tourism, fueled in part by the loss of Canadian visitors, is raising concerns about the economic stability of these cities. The decline is also reflecting broader shifts in international travel trends, with other regions, such as Europe and Mexico, gaining ground as more affordable and accessible destinations. This situation presents a wake-up call for U.S. tourism officials and local governments, highlighting the need for innovative strategies to attract international tourists back to these destinations.

In the following sections, we will explore the factors driving this decline, the specific cities most affected, and the long-term implications for U.S. tourism as a whole.

A Sharp Drop in U.S. Tourism: Understanding the Decline

The Widespread Decrease in International Arrivals

The overall picture for U.S. tourism in 2025 is troubling. Tourism Economics has reported a sharp downturn in international arrivals, with a projected 8.2% decline in international overnight stays in the U.S. this year. Historically, the U.S. has been a leader in attracting international tourists, but these numbers indicate a fundamental shift in travel patterns that threatens the sector’s long-term viability.

The most striking drop comes from Canada, the U.S.’s largest source market for foreign visitors. The International Trade Administration confirmed that while Canada still represented the highest number of visitors in March 2025 (with over 1.7 million visitors), these numbers were significantly lower compared to previous years. The loss of Canadian visitors has deeply affected the U.S. tourism sector, which has traditionally relied heavily on this market.

The Canadian Exodus: Why Fewer Canadians Are Heading South

The Sharp Decline in Canadian Travel to the U.S.

The figures are stark. In August 2025, Statistics Canada reported a 29.7% drop in Canadian visits to the U.S. compared to the same month in 2024. In July 2025, the decline became even more severe, with 35.8% fewer car-based trips and 16.2% fewer air-based returns from the U.S. The reasons behind this dramatic shift are complex but undeniable: political tensions, higher travel costs, and stricter U.S. immigration policies are all contributing factors that have made Canada’s southern neighbour less appealing to Canadian tourists.

This sudden reduction in Canadian tourism is particularly significant for major U.S. cities like New York, Los Angeles, and Miami, which have long relied on Canadian visitors as a primary source of international revenue. As the U.S. loses 1.74 million fewer overnight visits in the first half of 2025, businesses in these cities are scrambling to compensate for the loss of revenue from their once-reliable market.

The Economic Fallout: A Projected Loss of US$21 Billion

Tourism Revenue Hits Record Lows

The sharp reduction in international tourism is not just an issue of fewer visitors—it’s a major economic crisis. According to the World Travel & Tourism Council (WTTC), international visitor spending in the U.S. is expected to fall to US$169 billion in 2025, down from US$181 billion in 2024. This represents a 14% drop in tourism revenue, which is a significant blow to industries that rely on international visitors, such as hotels, airlines, restaurants, and entertainment venues.

If this trend continues, the economic impact could be catastrophic, with some estimates suggesting a US$21 billion loss in tourism revenue for 2025 alone. The decline in revenue from Canadian visitors, alongside drops from other international markets, has left a void that is proving difficult for U.S. cities to fill.

What’s Behind the Decline? The Key Drivers of U.S. Tourism’s Struggles

Several factors have come together to create the perfect storm for the decline in U.S. tourism, and they are deeply interconnected. Let’s explore these key drivers:

Stricter Border and Immigration Policies

Increased visa restrictions, longer waiting times, and a general sense of uncertainty at U.S. borders have made the country a less inviting destination for foreign visitors. Canadians, in particular, are discouraged by these hurdles, with many opting for other destinations with fewer entry obstacles.

The Strength of the U.S. Dollar

The strength of the U.S. dollar has made travel to the U.S. more expensive, especially for Canadians, whose currency has weakened. As the cost of visiting the U.S. increases, travellers are opting for cheaper alternatives, further exacerbating the downturn in tourism.

Negative Sentiment and Political Backlash

A socio-political backlash against U.S. policies—ranging from immigration restrictions to trade tariffs—has led to a souring of global perceptions of the U.S. as a travel destination. Many international visitors, particularly Canadians, perceive the U.S. as increasingly unfriendly or difficult to navigate, diminishing their desire to visit.

Decline in Key International Markets

Beyond Canada, the U.S. is also seeing a reduction in visitors from Europe, Asia, and other traditionally strong markets. Countries like Germany, Japan, and the UK are all reporting fewer tourists making the trek to U.S. cities, which compounds the effects of the Canadian downturn.

U.S. Cities Feeling the Impact

Certain major U.S. cities that rely heavily on international tourism are feeling the impact of this dramatic decline. These cities are facing a significant loss in revenue as international visitors—especially those from Canada—cut back on their trips. Let’s take a closer look at eight U.S. cities that have been particularly hard-hit.

Las Vegas: The Bright Lights Fade

Las Vegas, known for its world-class casinos, entertainment, and nightlife, is one of the cities hardest hit by the decline in international tourism. According to Tourism Economics, visitor numbers in Las Vegas are down by 7.8% in 2025, with Canadian visitors declining by 20%. This decrease has led to layoffs in key sectors of the hospitality industry, particularly in casinos and concierge services. With international tourism long driving the city’s economy, Las Vegas now faces a future where its once-reliable customer base is shrinking.

San Francisco: A Cultural and Economic Hub Struggles

San Francisco, known for its rich cultural heritage and major tourist attractions like the Golden Gate Bridge and Alcatraz Island, is also suffering from the tourism decline. The U.S. Travel Association forecasts a significant decrease in international visitors, especially from Canada. This has resulted in fewer hotel bookings and reduced international spending, with businesses in the city’s hospitality and retail sectors feeling the pinch.

Los Angeles and Hollywood: A Drastic Drop in Foot Traffic

The glamour of Hollywood and the vast expanse of Los Angeles have long drawn international tourists to California. However, the city has seen up to 50% fewer visitors in some areas during the summer of 2025. The California tourism authority has projected a 9% drop in international tourism across the state, driven primarily by a 38% decline in Canadian visitors. Hollywood’s iconic attractions, such as the Hollywood Walk of Fame and Universal Studios, are seeing fewer international tourists, and the hospitality industry is struggling to maintain profitability.

Miami and Orlando: Florida’s Struggling Icons

Both Miami and Orlando, popular destinations for international travellers, have also experienced significant drops in Canadian arrivals. In Q2 2025, Miami reported a 20% drop in Canadian visitors, while Orlando is similarly seeing reductions in hotel stays and visits to major attractions like Walt Disney World. These declines are having a ripple effect on Florida’s tourism-driven economy, which has historically relied on international visitors.

Chicago: A Gateway City Faces a Crisis

As a major urban tourism hub and international gateway, Chicago is feeling the effects of the tourism downturn. While specific city-level data is still emerging, experts predict that the decline in Canadian visitors, coupled with reduced international arrivals from other key markets, will continue to affect Chicago’s economy. The hospitality and retail industries are particularly vulnerable, with fewer visitors leading to lower spending.

Atlanta: A Southeastern Hub Faces Declining Traffic

Atlanta, a key transportation and tourism hub in the southeastern U.S., is another city experiencing reduced international arrivals. Although official data for 2025 is still being compiled, the reduction in Canadian tourism will likely continue to impact the city’s economy. Lower visitor numbers mean fewer hotel stays and less spending at restaurants and shops, putting additional pressure on the city’s tourism-driven economy.

New Orleans: Cultural Tourism Takes a Hit

Known for its lively festivals, jazz music, and rich history, New Orleans is also struggling with the decline in international tourism. With fewer international visitors attending events like Mardi Gras or exploring the historic French Quarter, the city’s hospitality industry is facing significant losses. The reduction in tourism-driven spending is particularly damaging to local businesses that have historically relied on international visitors.

The Long-Term Impact on U.S. Tourism

A Shift in Travel Patterns

The decline in international tourism is not a short-term problem; it reflects a broader shift in global travel patterns that could have lasting effects on the U.S. economy. U.S. cities that once thrived on international visitors are now facing an uncertain future. With fewer visitors from markets like Canada, Europe, and Asia, the reliance on international tourism for economic growth has left the U.S. vulnerable to changes in global travel trends.

Rebuilding the U.S. Tourism Sector

The U.S. must rethink its approach to attracting international visitors if it hopes to reverse the current decline. This could involve streamlining visa processes, offering more competitive pricing, and addressing the negative perceptions that have emerged around U.S. policies. If these challenges are not addressed, the U.S. tourism industry risks continuing its downward spiral, with profound economic consequences for the entire country.

U.S. Cities Affected by the Decline in International Tourism (2025)

This table outlines the impact of the decline in international tourism on eight major U.S. cities, particularly the loss of Canadian visitors. These cities, known for their strong tourism industries, are grappling with reduced foot traffic and revenue losses due to a sharp drop in international arrivals.

In conclusion, the decline in U.S. tourism in 2025 has caused a significant shift in the tourism landscape, especially for cities like Las Vegas, San Francisco, and Los Angeles. The sharp drop in international tourism, particularly from Canada, has left these cities grappling with substantial revenue losses. This decline is not just a temporary issue but part of a broader trend that has exposed vulnerabilities in the U.S. tourism sector. As visitor numbers continue to fall, economic impacts are becoming more evident, with industries that depend on foreign tourism facing severe challenges.

The tourism sector’s reliance on international visitors, especially those from Canada, has proven to be a double-edged sword. On the one hand, Canada has long been a reliable source of visitors, but on the other, the sharp decline in Canadian arrivals has highlighted the importance of diversifying tourism sources. The decline in international visitors, combined with factors such as stricter border policies, high travel costs, and shifting political sentiment, has created an environment where the U.S. tourism sector faces an uncertain future.

However, there is hope. To reverse the decline in U.S. tourism and rebuild its tourism industry, cities and the broader tourism sector must address the key issues at play. By improving visa processes, reducing travel barriers, and fostering a more welcoming environment for international visitors, the U.S. can recover from this setback. Only by adapting to new global travel trends and addressing the root causes of the decline in tourism will the U.S. restore its place as the world’s top travel destination.