Published on
September 3, 2025
U.S. Faces Decline in International Tourism Amid Political Tensions and Rising Costs
The United States, long considered one of the world’s most popular destinations for leisure and business travel, is facing a downturn in international arrivals. Analysts warn the trend is unlikely to reverse soon, raising concerns for an industry that contributes billions to the nation’s economy.
A Noticeable Decline in Arrivals
According to the National Travel and Tourism Office, overseas visitation to the U.S.—excluding travelers from Mexico and Canada—fell by more than three million people in the first seven months of 2025 compared to the same period last year. This 1.6 percent decline is significant for an industry still recovering from pandemic disruptions and economic uncertainty.
Canadian statistics add another layer to the story. For the first time in nearly two decades, more Americans drove into Canada in June and July than Canadians traveled south, apart from two months during the Covid-19 pandemic. The reversal signals waning enthusiasm among Canadian visitors, who have historically formed a major share of cross-border tourism.
Trump’s Policies and Rhetoric Cited as Key Factors
Experts point to political shifts as a major driver of the cooling sentiment. President Donald Trump’s return to the White House has been accompanied by policies and rhetoric that, critics say, make the U.S. less inviting. His administration has reinstated a travel ban affecting several African and Middle Eastern countries, tightened visa approval processes, and resumed large-scale immigration raids.
At the same time, Trump’s aggressive use of tariffs on imported goods has strained relations with global partners. Even casual travelers interpret these measures as a broader message that outsiders are unwelcome. Talk of acquiring Canada and Greenland, whether serious or not, has further fueled international unease.
Patrick Kaler, president and CEO of Visit Buffalo Niagara, expressed frustration at the fallout. “To see international traffic drop so dramatically, largely due to rhetoric that could easily be changed, is disheartening,” he said.
Warnings from Global Tourism Leaders
The World Travel & Tourism Council (WTTC) has issued a stark assessment. Ahead of Memorial Day, the council predicted that the United States would be the only one of 184 countries analyzed where foreign visitor spending would decline in 2025.
Julia Simpson, WTTC’s president and CEO, described the outlook bluntly: “The world’s largest travel economy is moving backward. While other nations are rolling out the welcome mat, the United States is effectively hanging up a ‘closed’ sign.”
Independent researchers echo the concern. Tourism Economics, a travel analytics firm, projects that international arrivals to the U.S. will fall by 8.2 percent in 2025. Its latest analysis points to airline booking data, which shows that the sharp slowdown observed in May, June, and July is set to persist in the months ahead.
More Than Just Politics
While political climate is a major factor, it is not the only challenge. Rising costs—from airfare to accommodation—are straining travelers’ budgets. Global economic uncertainty and geopolitical conflicts are also dampening demand for long-haul travel.
Deborah Friedland, managing director at Eisner Advisory Group, stressed the role of perception in shaping decisions. “Perception is reality. If travelers feel unwelcome, they’ll simply choose another destination,” she explained.
Bright Spots in Select Markets
Not every country is cutting back on travel to the U.S. Visitors from Argentina, Brazil, Italy, and Japan have increased in recent months, offering a measure of resilience. However, analysts caution that these gains are not nearly large enough to offset broader losses from Europe, Asia, and Canada.
Looking Ahead
The U.S. tourism sector, already battered by pandemic disruptions, now faces renewed headwinds from domestic politics and shifting global sentiment. Industry leaders argue that policy adjustments and a more welcoming message are essential if the nation wants to reclaim its position as the world’s top travel destination.
Without significant changes, the decline in international arrivals could ripple across hotels, restaurants, attractions, and local economies that depend heavily on tourism. As the country enters the peak holiday season, the stakes are high, and the message from experts is clear: America’s global image matters as much as its attractions.
