Home » Latest Travel News » Canada Joins France, Germany, China, South Korea, India, and Others in Fueling the Widespread US Tourism Freefall Last Year with a Significant Decline in Tourist Arrivals: Everything You Need to Know
Published on
January 25, 2026
Canada joins France, Germany, China, South Korea, India, and others in fueling the widespread US tourism freefall last year with a significant decline in tourist arrivals, as higher travel costs, inflation, currency pressures, visa bottlenecks, reduced flight capacity, and more cautious consumer spending converged across major source markets, sharply weakening inbound demand to the United States.
Canada: America’s Top Tourism Engine Slows Sharply
Canada remained the largest source of international visitors to the United States in 2025, but its performance also represented the single biggest drag on overall inbound tourism. Tourist arrivals from Canada fell to 13.47 million, down from 17.30 million in the comparison year, marking a steep –22.1% decline. Despite the contraction, Canada still accounted for 23.6% of total US international arrivals, underscoring the scale of its influence.
The drop reflects a combination of economic pressure, currency weakness, and changing travel behavior. Higher fuel costs and inflation in Canada made cross-border travel more expensive, while many Canadians opted for shorter domestic trips rather than extended US vacations. Border-region travel, traditionally a stabilizing factor, also softened as discretionary spending tightened.
Because of Canada’s outsized share, even modest behavioral shifts translated into millions of lost visitors. The decline had ripple effects across US retail, hospitality, and transportation sectors, particularly in northern states. In 2025, Canada’s slowdown alone significantly reshaped the overall US tourism performance.
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China (PRC): Recovery Momentum Stalls
China recorded 1.36 million US arrivals in 2025, down from 1.40 million, a –3.1% decline that represented 2.4% of total inbound tourism. While smaller than pre-pandemic levels, the dip signaled stalled recovery momentum.
Ongoing visa bottlenecks, limited flight capacity, and cautious consumer sentiment continued to restrict outbound travel. Many Chinese travelers favored regional destinations perceived as easier and more affordable. Group travel, once a major driver of US arrivals, remained subdued.
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Although the percentage decline was relatively mild, China’s strategic importance magnified its impact. Chinese visitors historically rank among the highest spenders per trip. The 2025 slowdown reinforced the reality that US tourism recovery remains uneven across Asia, with China still operating below its full potential and contributing to overall inbound softness.
India: Long-Haul Travel Demand Loses Momentum
India sent 1.79 million visitors to the United States in 2025, down from 1.89 million in the comparison year, representing a –5.2% decline. While India accounted for a smaller 3.1% share of total US arrivals, its importance lies in its role as a high-spending, long-stay market.
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The slowdown reflects rising airfare costs, visa processing delays, and economic caution among middle- and upper-income travelers. Business travel—traditionally a strong driver of Indian arrivals—also softened as companies tightened international travel budgets. At the same time, alternative destinations in Asia and the Middle East gained traction for leisure and education-linked travel.
India’s decline mattered less in volume terms than Canada’s, but its impact was strategic. Indian travelers contribute disproportionately to US tourism revenue through extended stays, shopping, and visiting friends and relatives. The 2025 dip signals that even resilient long-haul markets are becoming more selective, adding another layer to the broader US inbound tourism slowdown.
Germany: Europe’s Economic Anchor Pulls Back
Germany recorded 1.52 million arrivals to the United States in 2025, down from 1.72 million, translating into a –11.8% decline. With a 2.7% share of total arrivals, Germany remained one of the most influential European source markets—but also one of the sharpest decliners.
Economic stagnation in Europe, combined with high energy costs and weaker consumer confidence, weighed heavily on outbound travel. German travelers increasingly favored closer destinations within Europe, limiting demand for long-haul US trips. Environmental concerns and higher aviation taxes also influenced travel decisions in this market.
The decline had noticeable effects on US gateway cities traditionally favored by German visitors, including New York, Florida, and California. As a market known for long stays and repeat visitation, Germany’s pullback amplified the perception of softness in transatlantic travel. In 2025, Germany’s contraction underscored how economic uncertainty in Europe directly fed into weaker US tourism numbers.
France: Discretionary Travel Tightens
Tourist arrivals from France slipped to 1.36 million in 2025, down from 1.46 million, marking a –6.8% decline. France accounted for 2.4% of total US inbound tourism, making it a meaningful contributor to the overall slowdown.
French travelers faced rising costs across airfare, accommodation, and daily expenses in the United States, reducing travel frequency and trip length. Many opted for intra-European travel or postponed long-haul vacations altogether. Labor disruptions and economic uncertainty at home further dampened outbound demand.
The decline was especially visible in cultural and leisure travel segments, where the US competes heavily with destinations in Asia and the Mediterranean. Although France remains a loyal US source market, the 2025 figures show how discretionary travel weakened as travelers prioritized affordability and proximity. France’s pullback added to mounting pressure on US tourism performance during the year.
South Korea: Asia-Pacific Travel Rebalances
South Korea sent 1.36 million visitors to the United States in 2025, down from 1.44 million, reflecting a –5.8% decline and a 2.4% share of total arrivals. While modest in percentage terms, the drop highlights shifting travel priorities across Asia-Pacific markets.
Rising airfares, currency fluctuations, and increased competition from closer regional destinations reduced outbound US travel. Korean travelers increasingly favored Japan, Southeast Asia, and domestic experiences that offered shorter travel times and lower costs.
Education and business travel—key drivers of Korean arrivals—also softened amid tighter budgets and changing corporate policies. As one of the US’s most valuable Asian markets, South Korea’s decline contributed to slower recovery momentum across transpacific routes. In 2025, its pullback reflected broader recalibration rather than loss of interest, but it still weighed on overall inbound numbers.
Additional Source Markets Contributing to the US Tourism Slowdown
The table below highlights four additional international source markets that recorded declines in tourist arrivals to the United States in the selected year compared with the comparison year. While these countries account for a smaller share of total US inbound travel, their combined declines further illustrate the broad-based nature of the slowdown affecting US tourism. Markets such as Australia and the Netherlands reflect softening long-haul demand, driven by high airfare costs and cautious consumer spending, while nearby destinations like the Dominican Republic and Ecuador show how even short-haul and regional travel flows weakened slightly. Together, these trends reinforce that the decline in US tourist arrivals was not isolated to a few major markets but extended across multiple regions and travel segments.CountrySelected Year ArrivalsComparison Year Arrivals% ChangeShare of Total US ArrivalsEcuador374,949413,703–9.4%0.7%Netherlands493,211533,320–7.5%0.9%Australia810,257858,030–5.6%1.4%Dominican Republic429,668430,413–0.2%0.8%
Canada joins France, Germany, China, South Korea, India, and others in fueling the widespread US tourism freefall last year with a significant decline in tourist arrivals as higher costs, inflation, visa limits, and softer demand hit travel.
Conclusion
Canada joins France, Germany, China, South Korea, India, and others in fueling the widespread US tourism freefall last year with a significant decline in tourist arrivals, as rising travel costs, inflation, currency pressures, visa constraints, limited flight capacity, and cautious consumer spending converged across key source markets, collectively reshaping inbound travel demand to the United States.
