• California has experienced a significant decline in international tourist arrivals in 2025, particularly from Canada, Mexico, Germany, and the United Kingdom.
• This decrease is attributed to factors such as global economic uncertainties and political tensions, leading to a broader reluctance among international travelers to visit the U.S.
• Other major U.S. destinations are facing similar declines, indicating a nationwide trend affecting the tourism industry.
• The sustained drop in international visitors, coupled with weakening domestic travel, poses a significant threat to California’s economy, which relies heavily on tourism revenue and employment.

California’s tourism industry is experiencing a significant downturn in 2025, marked by a notable decrease in visitors from key international markets such as Canada, Mexico, Germany, and the United Kingdom. Newly released data from Visit California reveals an eleven percent drop in non-resident international arrivals at the state’s primary entry points in March 2025 compared to the previous year, with the total falling to 494,952 from 556,277. This decline is even more pronounced across California’s top-priority tourism markets, which collectively saw a twelve-point-one percent decrease.

Canadian travelers, historically the largest international source for California, showed a steep fifteen-point-five percent year-over-year drop in air arrivals for March. Similarly, arrivals from Mexico plunged by twenty-four-point-two percent, with air passenger numbers decreasing from 47,875 in March 2024 to just 36,279 in March 2025. European markets also contributed to this trend, with Germany experiencing a decline exceeding twenty-six percent and the United Kingdom seeing a twenty-two percent decrease in arrivals.

Analysts attribute this downturn to a combination of factors, including global economic uncertainties, prevailing political tensions, and a growing reluctance among international tourists to travel to the United States. This trend is not isolated to California, as other major U.S. destinations like Las Vegas are also reporting reduced hotel occupancy, suggesting a broader shift in international travel sentiment affecting the entire country. Airlines are responding by reevaluating routes and adjusting flight frequencies.

This decline is particularly concerning following the tourism sector’s strong recovery in 2024 after pandemic-related disruptions. Adding to the challenges, domestic travel is also facing strain due to decreased consumer confidence linked to economic instability and recession fears. The potential consequences of sustained declines in international travel are significant for California’s economy, which heavily relies on tourism for revenue and employment. Addressing this issue will require efforts to rebuild international confidence in U.S. travel through measures such as streamlined visa processes and improved communication. The long-term impact on California’s standing as a top international destination remains uncertain as the global travel landscape continues to evolve.