Why Foreign Tourists Are Skipping U.S. Travel

Have you ever walked through a bustling tourist spot and felt the energy of travelers from all corners of the world? Now, imagine those same streets eerily quiet, with local shop owners staring out at empty sidewalks. That’s the reality hitting many U.S. destinations right now. International visitors, once a reliable boost to the economy, are steering clear of the U.S., and the ripple effects are starting to sting. From small-town eateries to big-city hotels, businesses are feeling the pinch as global travelers rethink their plans. What’s driving this shift, and how are communities coping? Let’s dive in.

A Growing Tourism Drought in the U.S.

The U.S. has long been a magnet for international tourists, drawn to its iconic landmarks, vibrant cities, and diverse landscapes. In 2024 alone, foreign visitors poured over $180 billion into the economy, outpacing the value of all agricultural exports combined. But the tide is turning. Data from early 2025 shows a sharp drop in international arrivals, with a 12% year-over-year decline in March. This isn’t just a blip—it’s a trend that’s threatening to reshape the travel industry.

From the neon-lit streets of Las Vegas to the coastal charm of small towns like Anacortes, Washington, the absence of foreign tourists is palpable. Local business owners, who’ve long relied on the summer surge of visitors, are now bracing for a lean season. It’s not just about fewer selfies at landmarks; it’s about real financial losses that could ripple through entire communities.

Why Are Tourists Staying Away?

So, what’s keeping international travelers from booking their U.S. vacations? The answer lies in a mix of global tensions and domestic policies that have made the U.S. a less appealing destination. Let’s break it down.

• Trade Tensions: Recent announcements of steep tariffs have sparked fears of a global trade war. These policies, which could raise import duties to levels not seen since the early 1900s, create a combative atmosphere that doesn’t exactly scream “welcome.”
• Immigration Concerns: Stricter border policies and reports of increased detentions or device searches have fueled perceptions that the U.S. is less hospitable to visitors. Whether fair or not, this fear is deterring travelers.
• Geopolitical Friction: Comments from U.S. leadership, like suggestions that Canada or Greenland could be absorbed as territories, have ruffled feathers abroad. Some countries, including China and several European nations, have even issued travel advisories warning citizens about visiting the U.S.

Travelers are choosing destinations where they feel welcomed and safe. Right now, the U.S. isn’t projecting that vibe.

– Travel industry analyst

These factors aren’t just abstract policy debates—they’re hitting real people where it hurts: their wallets. For example, in Anacortes, Washington, a small restaurant owner named Sarah (name changed for privacy) shared that her summer bookings are down significantly. “We usually get a big crowd from Vancouver,” she said. “This year, it’s like they’ve vanished.”

The Economic Fallout

The decline in foreign tourists is more than a inconvenience—it’s a multi-billion-dollar problem. Experts estimate the U.S. economy could lose between $10 billion and $21 billion in 2025 if current trends hold. That’s money that won’t flow into hotels, restaurants, or local attractions. And it’s not just the big players feeling the heat. Small and mid-sized businesses, especially those in tourism-heavy areas, are already seeing profits erode.

Take a look at the numbers:

These figures, drawn in April 2025, show a sharp drop in profitability compared to the previous year. The main culprit? A steep decline in customer traffic, particularly from high-spending international visitors. Unlike domestic tourists, who spend an average of $500 per trip, foreign visitors often shell out $4,000 or more per person. Losing them is like losing the golden goose.

Cities Feeling the Pinch

Not every city is affected equally. Places like New York, Miami, and Las Vegas—where foreign tourists make up a significant chunk of visitors—are particularly vulnerable. These destinations rely on the deep pockets of international travelers to keep their economies humming. For example, in Las Vegas, tourism is the lifeblood of the city, driving everything from casino revenues to local diners.

Smaller towns aren’t immune either. In places like Anacortes, the loss of Canadian visitors—who typically make up the bulk of summer crowds—has forced businesses to scale back. Sarah, the restaurant owner, told me she’s had to cut back on orders from local farms, which hurts not just her bottom line but the entire community. “It’s not just about us,” she said. “When we buy less, the farmers feel it too.”

It’s a domino effect. One empty table at a restaurant means less for everyone down the supply chain.

– Local business owner

Is Domestic Travel the Answer?

You might be wondering: Can’t American travelers pick up the slack? Unfortunately, the data suggests otherwise. Domestic tourism was already cooling off heading into 2025, and the revenge travel trend—where people splurged on trips post-COVID—has mostly fizzled out. Plus, domestic tourists just don’t spend as much as their international counterparts, making it hard to fill the gap.

Here’s a quick comparison of spending habits:

• International Tourist: $4,000+ per trip
• Canadian/Mexican Tourist: $1,200 per trip
• Domestic Tourist: $500 per trip

With numbers like these, it’s clear why businesses are sweating. A family from Chicago might spend a weekend in Miami, but they’re not dropping the kind of cash a European couple would on a two-week U.S. adventure.

Global Travel Trends: Where Are Tourists Going?

Here’s the kicker: This isn’t a global travel slump. Other regions, like Europe and parts of Asia, are seeing positive tourism growth. Travelers aren’t staying home—they’re just picking different destinations. For instance, search data from Canadian travelers shows a 50% drop in U.S.-bound queries, while searches for Mexico surged by 35%. It’s a clear sign that tourists are redirecting their plans to places they perceive as more welcoming.

Social media chatter backs this up. One traveler posted online, “We swapped our U.S. trip for a week in Portugal. Better vibes, no stress.” Another said, “Canada’s got plenty to explore. Why deal with the hassle of U.S. borders?” These anecdotes reflect a broader sentiment: The U.S. is losing its shine as a must-visit destination.

What’s Next for U.S. Tourism?

The road ahead looks bumpy, but it’s not all doom and gloom. Some experts believe the U.S. could bounce back if tensions ease and policies shift to project a more welcoming image. For now, though, businesses are in survival mode, cutting costs and hoping for a rebound. In Anacortes, Sarah is optimistic but cautious. “We’ll make it through,” she said. “But it’s going to be a tough summer.”

Here are a few strategies businesses are adopting to weather the storm:

1. Targeting Local Markets: Some businesses are doubling down on domestic customers, offering deals to attract nearby travelers.
2. Streamlining Operations: Cutting back on inventory or staff hours to match lower demand.
3. Boosting Online Presence: Using social media to reach new audiences, even if it’s just locals or regional visitors.

But these are Band-Aid solutions at best. The real fix lies in addressing the root causes—trade disputes, immigration perceptions, and geopolitical rhetoric—that are driving tourists away. Until then, the U.S. risks losing its spot as a top global destination.

As I reflect on this trend, I can’t help but wonder: What does it mean for the U.S.’s identity as a global hub? Tourism isn’t just about dollars and cents—it’s about cultural exchange, shared experiences, and showing the world what makes a place special. If travelers keep turning away, we might lose more than just revenue. We might lose a piece of what connects us to the rest of the world. So, what can be done to turn the tide? That’s a question worth pondering as the summer travel season looms.