The Impact of Politics and Policy on US Tourism: A Closer Look at the Decline in Visitors

Published on December 19, 2025

As of 2025, the travel industry in the US faces many challenges. Even though the US has been one of the foremost destinations in the world, there was a noticeable decline in foreign visitors in recent years. These issues include politico-social situations, increased travel expenses, tough visa rules, and increased levels of security checks that resulted in a fall in the overall numbers of visitors. Despite the fact that the US will be hosting the World Cup, many travel industry analysts are cautious about recovery in the short term.

The Impact of Politics and Visa Hurdles on U.S. Tourism

The decline in international visitors to the United States is largely attributed to a combination of geopolitical factors and internal policy changes. High visa application fees, extended wait times for approvals, and increased scrutiny of foreign nationals, especially through social media checks, have made the process of visiting the U.S. more complicated and time-consuming.

Additionally, the language and policies of former President Donald Trump’s administration, particularly his remarks about Canada and other countries, have fueled negative perceptions about travel to the U.S. For instance, the suggestion that Canada should become the “51st state” led to a significant drop in Canadian visitors, with numbers declining nearly 26% in 2025 compared to previous years.

Moreover, with the global political climate becoming more uncertain, tourists are now hesitant about traveling to destinations that appear to have unstable or unfriendly political climates. The perception of the U.S. as an increasingly difficult destination for foreign visitors has deterred travelers, making them more likely to opt for other, more accessible destinations in Europe, Asia, and South America.

Economic Toll on U.S. Tourism: Loss of Foreign Spending

Tourism is a key driver of the U.S. economy, generating billions in revenue each year. In 2024, international visitors spent nearly $179 billion, a sum that supported millions of jobs across industries like hospitality, retail, and entertainment. However, this figure is expected to drop by $6 billion in 2025, a worrying sign for local businesses that rely on foreign tourism for a substantial portion of their revenue.

The decline in foreign visitors has created a ripple effect, impacting a wide range of businesses—from souvenir shops in Hollywood to sightseeing tour operators in Las Vegas. In cities like Key West, Florida, where the majority of tourists once hailed from Canada, bookings are down more than 25%. Local operators, such as Lloyd Mager, who runs bike tours in Key West, have seen their earnings plummet, leaving them anxious about the future.

Similarly, souvenir shops in tourist-heavy areas like Hollywood are facing steep declines in foreign customers, with some stores reporting a 30 to 40% drop in business. “There’s no one here,” said Adesh Barua, owner of a souvenir shop in Los Angeles, highlighting the ongoing struggles businesses are facing in a tourism environment that has yet to recover from the impacts of political changes.

Domestic Tourism Surges, But It’s Not Enough

While international tourism has faltered, the domestic tourism sector in the U.S. has experienced some growth. Domestic trips have reached an estimated 2.4 billion in 2025, a nearly 2% increase from last year. However, despite this increase, domestic spending is not enough to make up for the losses in foreign tourism. American tourists are spending more, but international visitors typically stay longer and spend more per trip, making them a crucial part of the U.S. tourism economy.

This discrepancy is contributing to a travel trade deficit, with Americans spending more on travel abroad than foreign tourists are spending in the U.S. In fact, the U.S. is projected to face a $70 million travel trade deficit in 2025, compared to a surplus of $51 billion in 2019. This shift further highlights the challenges the U.S. faces in regaining its competitive edge in the global tourism market.

The Role of Major Events: A Hopeful Outlook with the World Cup

Despite the ongoing difficulties, the tourism industry is cautiously optimistic about the impact of two major upcoming events: the 2026 FIFA World Cup and the 250th anniversary of American independence. The World Cup, hosted jointly by the U.S., Canada, and Mexico, is expected to draw an additional one million international visitors, with an estimated $900 million in additional revenue from hotel rooms alone. This event, which spans across multiple U.S. cities, could be a key moment for the recovery of foreign tourism.

However, even with the World Cup on the horizon, there are still challenges ahead. Many tourism professionals fear that the lingering negative perceptions of the U.S. will affect travelers’ decisions to visit, especially in non-World Cup host cities. For example, in places like Las Vegas, where international tourism numbers have fallen by more than 7%, local businesses are adjusting by offering discounts and reducing tour offerings to compensate for the downturn in foreign visitors.

The Long-Term Picture: U.S. Tourism Needs Comprehensive Reform

As the U.S. looks toward the future of tourism, experts stress the importance of addressing the underlying issues that have caused the decline in foreign visitors. These include making the visa process easier and more efficient, reducing the perception of political unfriendliness, and revitalizing global marketing efforts. The U.S. Travel Association has been vocal about the need for a more welcoming environment for international tourists, but as of now, there is still work to be done.

In the meantime, the tourism industry is relying on major events like the World Cup to bring a temporary boost. While this is a positive step, a more sustainable recovery will require a broader shift in policy and a more concerted effort to make the U.S. a welcoming destination for international travelers once again.

The Road Ahead for U.S. Tourism

One of the most vibrant industries in the Republic of Ireland, offering great opportunities for an excellent career for dream followers, is tourism. Be it events management, world-class restaurant experiences, or celebrating the historical aspect of emigration, tourism as a sector has much to offer. The stories that have been inpenetrated above by the examples of Ellen, Conor, and Katy are that Irish tourism fosters creativity, innovation, and development, perfect for one seeking a rewarding career and a fulfilling life.