• Widespread US Tourism Decline: Major tourism states like New York, Nevada, California, Florida, and Michigan are facing significant drops in visitor numbers in 2025, especially from international travelers.
• Rising Costs and Inflation as Primary Drivers: Increased expenses for airfare, accommodation, and dining, coupled with a US inflation rate of 2.3% (as of April 2025), are making the US a less attractive and affordable option for many tourists.
• Significant Economic Impact: The decline in tourism, particularly the loss of high-spending international visitors, is leading to substantial economic consequences, such as New York City’s projected $4 billion loss in tourist spending.
• Uncertain Recovery Dependent on International Tourists: While domestic travel shows some resilience, a full recovery for the US tourism industry heavily relies on the return of international visitors, who currently perceive the US as too expensive.

Several prominent US states, including New York, Nevada, California, Florida, and Michigan, are experiencing a significant downturn in tourism in 2025. This decline is primarily driven by a sharp drop in international arrivals and the impact of rising inflation on budget-conscious travelers.

With increasing costs for airfare, hotels, dining, and more complex entry requirements, many foreign tourists are opting for destinations perceived as more affordable and accessible. The US inflation rate, which reached 2.3% in April 2025, is contributing to the image of an American vacation becoming a luxury.

The economic repercussions are notable. New York City has slashed its 2025 visitor forecast by 3.5 million, anticipating 2.5 million fewer international visitors, which could lead to a $4 billion loss in tourist spending. Despite a resilient domestic travel scene, the absence of these high-spending global visitors is creating a void.

Las Vegas has also seen a decline in visitor numbers (down 5.1% in April year-over-year) and hotel occupancy, even as room rates climb, challenging its reputation as a budget-friendly destination. California is bracing for its first overall tourism drop since the pandemic, with international travel expected to decrease by 9.2%. Florida has reported a 3.4% drop in Canadian arrivals in the first quarter of 2025, while Michigan’s border towns are also feeling the slowdown from Canadian visitors.

Industry experts indicate this is more than a temporary slump, with the high cost of travel being the central issue. While domestic tourism, supported by events and local attractions, provides some stability, the loss of international travelers, who typically stay longer and spend more, is significant.

Tourism boards across the affected states are hopeful for a rebound driven by domestic travel for upcoming events, but acknowledge that a full recovery hinges on the return of international visitors. Currently, the prevailing message from many global tourists is that the U.S. is too expensive, a perception that needs to shift for the tourism sector to fully recover.