US Joins Cuba, Thailand, Canada, Philippines, and Argentina in Facing Sharp Declines in Foreign Tourist Arrivals in 2025 – What’s Behind This Global Tourism Trend?

Published on December 10, 2025

By: Paramita Sarkar

While global tourism has shown signs of recovery in 2025, several key destinations are struggling with a decline in foreign tourist arrivals. Countries like Cuba, United States, Canada, Philippines, and Thailand are experiencing significant reductions in international visitors. According to official reports from sources like the US Travel Association, Statistics Canada, and UN Tourism, these declines are influenced by a range of economic, geopolitical, and internal factors.

In this detailed analysis, we will take a closer look at each country and the reasons behind their tourism downturn in 2025.

1. Cuba: Economic Crisis and Limited Connectivity

Key Facts:

• Q1 2025 Decline: -29.1% (compared to Q1 2024)
• Primary Issue: Economic crisis, energy shortages, and limited air connectivity

Why Is Cuba Struggling?

Cuba’s tourism industry has been severely affected by its ongoing economic crisis. The country’s economic difficulties have resulted in significant shortages, particularly in energy supplies, which affect both daily life and the tourism infrastructure. Furthermore, Cuba has been facing challenges related to air connectivity. Airlines have reduced or canceled services due to high operational costs and limited flights from key tourist markets.

In addition to these internal issues, the Cuban government has been struggling to offer affordable and reliable accommodations for international tourists. With energy shortages affecting transportation, as well as basic services, tourists have been discouraged from visiting the island nation.

Key Factors Driving the Decline:

• Economic Challenges: Cuba’s economic difficulties, including energy shortages and unreliable infrastructure, make it difficult for tourists to experience the country’s offerings comfortably.
• Air Connectivity: Airlines are reducing or cutting direct flights to Cuba due to the high costs and low demand.
• Tourist Experience: Limited amenities, accommodation challenges, and an overall decline in the quality of services available for tourists are contributing to fewer international visitors.

2. United States: Political Climate and Safety Concerns

Key Facts:

• 2025 Decline Forecast: -6.3% (compared to 2024, according to the US Travel Association)
• Primary Issue: Geopolitical tensions, rising visa costs, and safety concerns

Why Is the United States Struggling?

The United States has long been one of the world’s top tourist destinations, but in 2025, it is experiencing a decline in foreign tourist arrivals. The US Travel Association forecasts a 6.3% decrease in international visitors for the year. This decline can be attributed to several factors, including the rising costs of visas, an increasingly politically charged climate, and growing concerns over safety.

The United States has faced significant political turmoil over the past few years, with rising tensions around immigration policies, security measures, and protests, which may have deterred potential visitors. The cost of obtaining a visa for the United States has also increased, making travel less accessible to many international tourists, particularly from neighboring countries like Canada.

Key Factors Driving the Decline:

• Visa Costs: Rising visa application costs, along with lengthy processing times, have deterred many potential visitors from applying for US visas.
• Political and Safety Concerns: Heightened security concerns and a politically divisive environment have made some international travelers hesitant to visit the United States.
• Declining Canadian Visits: A sharp decrease in visitors from Canada (down 25.2% year-to-date) has been especially noticeable, as short-haul trips from neighboring countries traditionally make up a large portion of tourism in the US.

3. Canada: Decrease in US Short-Haul Travelers

Key Facts:

• Q2 2025 Decline: -3.1% (US and overseas visitors combined)
• Primary Issue: Decline in US short-haul travel, geopolitical tensions

Why Is Canada Struggling?

Canada, known for its natural beauty and urban attractions, has also seen a decline in tourism in 2025. Statistics Canada reported a 3.1% decline in inbound arrivals for Q2 2025. This drop is largely due to the reduction in short-haul visits from the United States, which have traditionally made up the bulk of Canada’s international tourism.

The number of US visitors decreased by 5.6% in Q2 2025, which is especially significant for regions like Vancouver, Toronto, and Montreal, which rely heavily on American tourism. Factors such as higher travel costs, political instability, and a reduction in flights between the US and Canada have led to this decline.

Key Factors Driving the Decline:

• Decline in US Travelers: The primary driver behind the drop is the reduction in short-haul trips from US residents, who have historically accounted for a large portion of international visitors to Canada.
• Economic Pressures: Rising costs of living, exchange rates, and overall inflation have made travel to Canada more expensive for many Americans.
• Tensions with the US: Geopolitical tensions, such as trade disputes and differences in political views, may have led to a decline in tourism from the United States.

4. Philippines: Geopolitical Tensions and Regional Competition

Key Facts:

• Q1 2025 Decline: -2.42% (down from 1,530,319 arrivals in Q1 2024)
• Primary Issue: Loss of visitors from South Korea and China, regional competition

Why Is the Philippines Struggling?

The Philippines has seen a notable decline in foreign tourist arrivals in 2025. In Q1 2025, the country experienced a 2.42% decline compared to the previous year. The primary factors behind this drop are the decline in visitors from South Korea (down 13.9%) and China (down 33.7%). These two countries are typically the Philippines’ largest sources of international tourists.

The decline is largely due to geopolitical tensions and regional competition. As China continues to face internal and external challenges, including its own tourism downturn, fewer Chinese tourists are traveling abroad, especially to Southeast Asia. Additionally, countries like Vietnam and Thailand have become more competitive, offering similar attractions at more affordable prices.

Key Factors Driving the Decline:

• Decline in South Korean and Chinese Visitors: The Philippines has seen a significant reduction in visitors from its two largest tourism markets.
• Regional Competition: Countries like Vietnam and Thailand have attracted more tourists by offering competitive pricing, better infrastructure, and more diverse offerings.
• Geopolitical Issues: Tensions in the region, particularly with China, have affected tourism flow to the Philippines.

5. Thailand: Scams, Safety Concerns, and Regional Competition

Key Facts:

• 2025 Decline: -7.19% (January 1 – December 7, 2025)
• Primary Issue: Scams, safety concerns, and intense competition from regional neighbors

Why Is Thailand Struggling?

Thailand, once a booming tourism destination in Southeast Asia, has seen a sharp decline in foreign tourist arrivals in 2025. According to reports, the country has experienced a 7.19% drop in visitors year-to-date, with a major reduction in travelers from China (down 33.8%) and Malaysia.

The decline can be attributed to several factors, including widespread scams, safety concerns, and growing competition from neighboring countries like Vietnam and Indonesia. Many tourists have cited safety concerns related to fraud, and issues such as unlicensed tours and scam activities have negatively impacted Thailand’s tourism industry.

Key Factors Driving the Decline:

• Safety and Scams: The prevalence of scams, particularly targeting foreign tourists, has led to growing concerns about the safety of visiting Thailand.
• Regional Competition: Countries like Vietnam and Indonesia have attracted more tourists by offering similar experiences at lower prices, increasing competition for Thailand.
• Decreased Chinese Arrivals: The largest drop in visitors has been from China, Thailand’s biggest source market, with a 33.8% year-on-year decline.

Key Summary Table of Declining Countries:

Conclusion

While global tourism is generally experiencing growth in 2025, countries like Cuba, United States, Canada, Philippines, and Thailand are facing significant challenges. Each of these countries has its unique set of circumstances driving the decline, including economic crises, geopolitical tensions, regional competition, and safety concerns.

These challenges highlight the complex nature of the tourism industry, where local issues and global trends intersect. As these countries work to address their respective challenges, it will be essential for governments and tourism boards to recalibrate their strategies to regain foreign tourist confidence and reverse the declining trends.