This summer, foreign visitation to the United States remained significantly depressed, with industry sources warning that the decline shows little sign of abating beyond the season. Cities such as Buffalo, Las Vegas, and Los Angeles have reported persistent downturns, largely attributed to political tensions, tariff enforcement, and restrictive immigration practices under the Trump administration. Analysts foresee the persistent decline extending past summer into the rest of 2025.
Forecasts from the World Travel & Tourism Council (WTTC) indicate that the U.S. is uniquely positioned among 184 countries to suffer a decline in international visitor spending this year. The total projected loss stands at $12.5 billion, reducing spending to just under $169 billion, down from $181 billion in 2024. According to Tourism Economics, inbound international arrivals are estimated to fall by 8.2 % with a spending shortfall of $8.3 billion, bringing combined losses to an estimated $25 to $29 billion in 2025.
Border Shocks: Canada and Policy Backlash
One of the most severe blows stems from plunging Canadian tourism. Canadian visitation is down 25.2 % year‑to‑date, with land arrivals in July collapsing 37 % below the previous year. The U.S. Travel Association cautioned that even a 10 % drop in Canadian travelers could result in 2 million fewer visits, $2.1 billion in lost revenue, and 14,000 job losses.
The broader context includes a growing Canadian boycott of U.S. travel and products, driven by tariffs and provocative political rhetoric. The boycott reports show more than 70 % decline in bookings from Canada during April to September and a steep fall in border crossings and tourism-related retail sales.
Travel sentiment from other international markets is also wounded: in March 2025, inbound tourism dropped by 11.6 %, with Germany down 28 %, Spain 25 %, the U.K. 18 %, and South Korea 15 %.
Visa Fee, Travel Anxiety, and Washington’s Dilemma
Adding to the downward pressure, the U.S. will implement a $250 “visa integrity fee” effective October 1, 2025, bringing the total cost of visa processing to approximately $442 for travelers from non‑visa waiver nations in places like Mexico, Argentina, India, Brazil, and China. The Congressional Budget Office anticipates the fee could bring in $27 billion over a decade, but critics warn it may deter an already fragile stream of international visitors..
In Washington, D.C., tourism suffered an additional blow when the National Guard was deployed in August, leading to a sharp drop in foot traffic, hotel occupancy, and tour bookings—despite low violent crime rates. More than 41 conferences for 2026 have been canceled, threatening over $50 million in revenue.
Domestic Travel and Resilience in Niche Markets
Despite these challenges, domestic travel has provided some relief. In Door Peninsula, Wisconsin, domestic tourism remained strong, helped by U.S. consumers filling the gap left by international visitors. A July travel insights dashboard noted a modest 0.2 % uptick in U.S. travel spending, supported by record domestic air travel and growing short‑term rental demand, even as international arrivals fell 3.1 % from year‑ago levels.Short‑term rentals in popular domestic destinations have seen buoyancy — 26.4 million nights booked in July, with average daily rates rising nearly 7 % to $351, largely driven by U.S. travelers substituting for absent international tourists. High-end leisure stays in places like Maui, Hilton Head, and Charleston posted revenue increases, reflecting shifting travel patterns. Industry insiders also note that luxury and premium segments have held up better, with operators like Hilton, Hyatt, and Expedia revising outlooks upward on the strength of domestic spending, despite persistent international softness.