US Grapples with Tourism Decline as International Arrivals Slide Further, More Than Twelve Billion in Travel Spending Diverted from California, Florida, Nevada, New York, and Hawaii

Published on December 19, 2025

The United States is witnessing a significant drop in international tourism, with arrivals from key markets falling sharply and over twelve billion dollars in travel spending lost from top states including California, Florida, Nevada, New York, and Hawaii. High airfare, expensive accommodations, strict visa requirements, and stronger competition from other global destinations are pushing travelers elsewhere, putting tourism jobs, revenues, and local economies at serious risk.

While international travel surges worldwide, the U.S. is lagging behind, struggling to reclaim its position as a top global destination and facing growing concerns over the long-term economic fallout.

Worldwide appetite for travel remains robust, with leisure and business trips reaching or surpassing pre-pandemic levels in many markets. Yet the United States is failing to capture its share of this demand. Current projections suggest that international visitor spending in the country could fall by nearly $12.5 billion in 2025, pushing total overseas travel expenditure below $169 billion. This decline stands in sharp contrast to the global picture, where tourism revenues continue to rise as travelers return in growing numbers.

The slowdown is being driven by weaker arrivals from some of the country’s most important source markets, including Canada, Europe and Asia. These regions have traditionally supplied a significant portion of international visitors, but recent trends show fewer travelers choosing the U.S. as their destination. This places the country among a small group of nations moving against the prevailing global trend. In fact, tourism growth has been recorded in 183 countries this year, underlining how isolated the U.S. downturn has become. Inbound international arrivals are forecast to drop by more than six percent, deepening concerns about the country’s fading competitiveness in the global travel market.

The economic implications extend well beyond headline arrival figures. Tourism is a critical pillar of the U.S. economy, supporting millions of jobs across a wide range of industries. Airlines, airports, hotels, resorts, restaurants, entertainment venues, theme parks and countless small businesses all rely heavily on international visitors. A sustained decline in overseas travel threatens reduced bookings, lower occupancy rates and shrinking revenues, which can quickly translate into fewer working hours and job losses. Tourism-dependent states such as California, Florida, Nevada, New York and Hawaii are expected to feel the impact most acutely, but the ripple effects are likely to reach communities nationwide.

Cost pressures are playing a central role in shaping traveler decisions. Airfares to and within the United States remain elevated, while accommodation prices in major cities and resort destinations have climbed sharply. When combined with currency fluctuations that make the U.S. dollar expensive for many travelers, the overall cost of visiting the country has risen significantly. For price-sensitive tourists, these factors make alternative destinations in Europe, Asia, the Middle East and Latin America more attractive, especially those offering competitive pricing and streamlined travel experiences.

Entry and travel complexity are also influencing demand. Lengthy visa processes, strict entry requirements and limited appointment availability in some regions have created additional barriers for potential visitors. In an era when travelers increasingly value convenience and efficiency, destinations that offer easier access and faster processing are gaining an advantage. As a result, many tourists are choosing countries where entry is simpler, travel is smoother and overall value is perceived to be higher.

The contrast with global trends is becoming increasingly stark. As international travel reaches record levels and new destinations actively invest in tourism infrastructure, marketing and accessibility, the United States risks losing further ground. The challenge is not a lack of global demand, but rather an inability to convert that demand into arrivals and spending.

The United States is facing a sharp decline in international tourism as arrivals fall, diverting over twelve billion dollars in travel spending from California, Florida, Nevada, New York, and Hawaii. Rising costs, visa hurdles, and global competition are driving travelers elsewhere, hitting tourism jobs and local economies.

Without decisive action to address cost concerns, improve accessibility and strengthen its image as an open and welcoming destination, the United States could continue to fall behind in an increasingly competitive global tourism landscape. For an economy where travel supports livelihoods across multiple sectors, reversing this decline is not just a tourism priority, but an economic necessity.