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Vermont saw a 28.6% decline in tourism in 2025, joining Michigan, Texas, Ohio, Washington, Colorado, and others in facing a significant drop in visitors. This downturn is compounded by thousands of flight cancellations and disruptions across the U.S. tourism sector, all driven by the ongoing U.S. government shutdown that began on October 1, 2025. With federal agencies like the FAA and TSA facing severe staffing shortages, the travel experience has become more difficult, leading to higher costs and fewer visitors. As these states navigate the effects of the shutdown, the tourism industry continues to struggle.
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The ongoing U.S. government shutdown, which began on October 1, 2025, has caused significant disruptions across various sectors, especially in travel and tourism. Federal agencies such as the Federal Aviation Administration (FAA) and the Transportation Security Administration (TSA) are severely impacted, with over 13,000 air traffic controllers and 50,000 TSA officers working without pay. This has led to absenteeism, flight delays, and cancellations at major airports nationwide. International air bookings, especially from Canada, have dropped by over 35%. The shutdown is projected to cost the U.S. economy approximately $650 million in lost travel revenue, forcing airlines and hotels to adjust their operations.
In October 2025, U.S. air travel saw a 1.7% decline in passenger demand compared to 2024. International bookings were 10% to 14% lower, with Canadian travel dropping by up to 43%. The ongoing government shutdown, which began on October 1, worsened these challenges, leading to an estimated $650 million in losses across the travel and hospitality sectors. Despite these setbacks, luxury hotels like the Four Seasons and Ritz-Carlton saw a surge in bookings, with nightly rates rising from $900 to $1,500-$2,500. The hotel industry remains cautiously optimistic, though occupancy rates are still below pre-pandemic levels.
In September and October 2025, US hotel occupancy dropped to 68.5%, a 2.4% decrease from the previous year. The decline is due to reduced international tourism and cautious consumer spending, worsened by the ongoing federal government shutdown. The shutdown led to fewer bookings and cancellations, resulting in an estimated $650 million loss. Despite this, luxury hotels like the Four Seasons and Ritz-Carlton saw increased bookings, with rates rising from $900 to $1,500–$2,500. The hotel industry remains cautiously optimistic, expecting a slight increase in occupancy, but still falling short of pre-pandemic levels.
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Decline in Hotel Occupancy Across KEY US Cities in October 2025
City Occupancy Decline Factors Contributing to Decline New York City, New York 0.5% Global uncertainty, rising hotel prices, fewer international events Las Vegas, Nevada 21.3% Reduced international visitors, economic challenges New Orleans, Louisiana 18.7% Economic uncertainty, reduced international travel, weather effects Houston, Texas 5.6% Slowdown in business travel, aftermath of Hurricane Beryl Miami, Florida 12% Tough comparison to 2024 events, fewer international visitors Los Angeles, California 50% Wildfires, political unrest, decline in Canadian visitors Boston, Massachusetts 7% Fewer large events, economic uncertainty, reduced international travel
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Vermont experienced a sharp 28.6% decline in tourism in 2025, a significant setback for the state’s tourism industry. The downturn can be attributed to rising travel costs and increased competition from more affordable destinations. Many potential visitors chose neighboring states that offered better deals, which led to fewer bookings for Vermont’s popular attractions like the Green Mountains and Lake Champlain. The state’s picturesque landscapes and quaint villages, once a major draw for tourists, are now facing a challenging recovery as they work to attract visitors back.
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Michigan saw a considerable 20.8% decline in tourism in 2025, with just 8.4 million arrivals. The state’s tourism struggles stem from economic uncertainty, rising costs, and fierce competition from other destinations. Major attractions, including the Great Lakes and Detroit’s cultural hubs, experienced fewer visitors, as travelers tightened their budgets. The combination of economic challenges and the growing appeal of more affordable or nearby destinations has left Michigan fighting to regain its position as a top tourist spot in the Midwest.
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Texas faced an 8.6% drop in tourism in 2025, with 95.8 million arrivals, reflecting the impact of rising travel costs and stiff competition from other destinations. As one of the most visited states in the U.S., Texas’ diverse offerings, from its cities to its natural landscapes, have been overshadowed by destinations that offer better travel deals. The decline was felt across major tourism spots like Austin, Dallas, and San Antonio, where hotels and attractions saw fewer visitors. Texas is now facing the challenge of balancing rising costs while maintaining its tourism appeal.
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Ohio experienced an 8.4% decline in tourism, particularly during April, as fewer visitors chose the state over neighboring destinations. With cities like Columbus, Cleveland, and Cincinnati offering vibrant cultural scenes, the drop in tourism highlights the growing competition from nearby states with more attractive travel packages. The state’s tourism suffered as travelers opted for destinations that provided better deals and more enticing options. Ohio now faces a competitive struggle to reinvigorate interest in its key attractions, including its theme parks, museums, and historical landmarks.
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Washington state saw a 16.2% drop in tourism, with noticeable declines in March and July. This decline was particularly impactful on event-driven tourism, which has long been a key component of the state’s economy. Iconic spots like Seattle and Mount Rainier saw fewer visitors, and key events, which traditionally draw large crowds, were affected by rising costs and shifting travel habits. Washington’s tourism sector now faces the challenge of rebuilding momentum, focusing on year-round appeal and strategic efforts to bring back visitors for cultural and outdoor experiences.
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Colorado experienced a staggering 40% drop in tourism in 2025, especially in popular ski destinations like Aspen and Breckenridge. The decline can be attributed to changing travel preferences and rising costs that deterred tourists from booking trips to the state’s renowned outdoor resorts. While Colorado has long been a top destination for adventure tourism, the rising price of travel and competition from more affordable winter destinations has hit its tourism industry hard. The state is working to recover, focusing on attracting visitors by offering more affordable travel options and diversifying its tourism offerings beyond winter sports.
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Florida: In 2025, Florida saw an 8.7% decline in tourism, with 17.7 million arrivals, attributed to rising travel costs, economic uncertainty, and competition from other destinations.
Kentucky: Kentucky’s tourism dipped by 4% in August, but strong performances in earlier months, like the Kentucky Derby, helped the state maintain recovery potential.
Illinois: Illinois experienced a modest 3% drop in tourism in August, with Chicago remaining a key draw despite overall reduced numbers in the state.
New Mexico: New Mexico saw a mild 3% decline in August, reflecting shifting travel patterns and competition from other destinations.
California: California experienced a 1.43% drop in tourism, with mixed results, including notable dips in places like Los Angeles during June and February.
Colorado: Colorado faced a significant 40% drop in tourism, especially in Aspen and Breckenridge, due to changing travel preferences and rising costs.
Hawaii: Hawaii saw a 5.56% decrease in tourism, continuing the broader trend of reduced visitor numbers, especially from international markets.
Idaho: Idaho experienced a 7.2% decline in tourism, impacted by shifting preferences and competition from other destinations offering better deals.
Mississippi: Mississippi faced a sharp 17.9% drop in tourism, needing urgent recovery efforts to regain visitor interest and bookings.
Missouri: Missouri experienced an 8.81% decline in tourism, reflecting consistent declines across months, particularly in spring and summer.
Montana: Montana saw a 4.56% drop in tourism, influenced by declines in both May and August, alongside competitive destinations.
New Jersey: New Jersey experienced an 8.57% reduction in tourism, driven by decreases in February and October, impacting local businesses.
Nevada: Nevada saw an 11.3% drop, with significant declines in Las Vegas, exacerbated by economic uncertainty and increased competition.
New York: New York faced a 10.5% drop in tourism, with an 11.6% decrease in August, reflecting the impact of global economic factors.
Virginia: Virginia saw an 8.6% tourism decline, pressured by challenges faced by businesses and shifting visitor preferences.
Wisconsin: Wisconsin faced a 3% decline, with mixed trends, showing slight losses in some months despite its year-round appeal.
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In October 2025, U.S. aviation faced severe disruptions, with over 4,700 flight cancellations and 35,000 delays, largely due to the ongoing government shutdown, staffing shortages, and an IT outage. These issues particularly impacted major airports across the country. Meanwhile, international tourism to the U.S. took a significant hit, with countries like Canada, Germany, and China seeing the sharpest declines in visitor numbers. Factors such as rising costs, visa delays, and geopolitical tensions contributed to the downturn, affecting retail, hospitality, and cultural tourism, leading to major financial losses and job risks across various sectors.
In October 2025, U.S. aviation faced major disruptions, with over 4,700 flight cancellations and 35,000 delays, largely due to the ongoing government shutdown. Staffing shortages and an IT outage worsened the situation, particularly affecting major airports.
Disruption Number Cause Flight Cancellations 4,700+ Staffing shortages, IT outage Flight Delays 35,000+ Federal government shutdown
The U.S. saw a significant decline in international tourism in 2025, with Canada, Germany, and China experiencing the sharpest drops. Factors like rising costs, visa delays, and geopolitical tensions contributed to the overall downturn, impacting sectors like retail, hospitality, and cultural tourism.
Country Tourism Decline (%) Key Contributing Factors Impact on U.S. Tourism Canada 34% Border security, U.S. dollar strength, political tensions $29 billion revenue loss, 140,000 jobs at risk Germany 28% U.S. immigration policies, rising costs Loss of high-spending visitors, impact on luxury retail Brazil 4.6% Visa delays, rising costs, perception issues Loss in retail, dining, tourism sectors Mexico 7.4% Border security, rising costs, preference for other countries Decline in shopping, dining, entertainment revenue India 8% Stricter visa rules, rising costs Impact on retail, hospitality, entertainment sectors UK 15% Political instability, stronger U.S. dollar, rising costs Drop in tourism spending, especially in shopping and culture South Korea 15% Rising costs, immigration concerns Impact on U.S. cities like LA, New York, and San Francisco Spain 25% Strong U.S. dollar, rising costs, political instability Shift in interest to Europe, Latin America Japan 15% Strong U.S. dollar, rising costs, immigration concerns Economic impact in California and Hawaii China 20% Geopolitical tensions, visa delays, rising costs Major loss in retail and luxury tourism spending
The recent hike in U.S. visa fees, especially the $100,000 charge for H-1B applicants, is slowing tourism growth. Higher visa costs are creating financial barriers for travelers and skilled professionals, particularly from countries with high demand for U.S. visas, such as India, China, and several European nations. As affordability becomes a concern, competing destinations offering lower visa fees are attracting potential visitors, leading to a decline in both tourism and skilled labor migration to the U.S.
The U.S. border crackdown has led to longer delays and higher costs for travelers from Canada and Mexico. Stricter immigration controls are creating challenges for lawful visitors, disrupting tourism, trade, and cross-border movement. Increased wait times and heightened scrutiny at the border are causing frustration, especially for business travelers and tourists who rely on smooth entry processes. These measures are hampering the free flow of people and goods, straining relations and limiting opportunities for travel and trade.
Canada is facing significant delays at U.S. border crossings, discouraging many Canadians from traveling to the U.S. for leisure, business, or education. Stricter checks and longer wait times are making cross-border trips more time-consuming and expensive. These border challenges are negatively impacting tourism and trade between the two countries, creating a bottleneck that restricts the ease of movement. As a result, many Canadians are reconsidering their travel plans, affecting both the tourism industry and economic exchange.
The U.S. border crackdown has raised travel costs and caused visa delays for Mexican citizens, reducing tourism to major U.S. cities like Los Angeles and Miami. Stricter entry measures are creating barriers for Mexicans seeking to access opportunities in the U.S. Whether for business, leisure, or family visits, the increased scrutiny and costs are diminishing the ease of travel. These challenges strain the cultural and economic connections between the U.S. and Mexico, affecting both tourism and trade.
The ongoing U.S. government shutdown is fueled by deep political divides, particularly over federal spending and immigration reform. The legislative gridlock has led to stalled negotiations, halting essential government services and disrupting the economy. This political polarization is creating uncertainty for federal workers and businesses reliant on government functions. As the shutdown continues, it highlights the growing challenges of bipartisan cooperation and the long-term effects of political instability on U.S. governance and economic stability.
Vermont saw an 28.6% decline in tourism, joining Michigan, Texas, Ohio, Washington, Colorado, and others in facing a significant drop in tourism, with thousands of flight cancellations and a visitor plunge since the October 1 US government shutdown.
Vermont, alongside Michigan, Texas, Ohio, Washington, Colorado, and others, has been hit hard by the ongoing US government shutdown, which began on October 1, 2025. These states are confronting significant drop in tourism, with thousands of flight cancellations and a significant plunge in visitor numbers. The shutdown has caused severe disruptions across the travel and tourism industries, with agencies like the FAA and TSA facing staffing shortages and operational delays, further exacerbating the situation. As a result, major tourist destinations are seeing a direct financial toll, while airlines and hotels struggle to adjust to the decline in bookings and cancellations. The shutdown’s far-reaching effects underscore the critical impact of federal government disruptions on the nation’s tourism economy.
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