US tourism slumps as foreign visitors decline in 2025

Dhaka: The US tourism industry is taking a major hit in 2025, with international visitor spending down 7 percent—a loss of about USD 12.5 billion, according to the World Travel and Tourism Council.

Analysts link the decline to new visa fees and tougher border checks, the strong US dollar, and negative global perceptions of the US. Tourism Economics reports international arrivals remain 9.4 percent below pre-pandemic levels.

Key markets are shrinking:

- Canada: Cross-border travel dropped sharply, with car trips down 37 percent and flights down 26 percent.

- Europe: Visitor numbers fell from Denmark (–19pc), Germany (–10pc), and France (–6.6pc).

- Asia & Africa: Countries like Hong Kong, Indonesia, and several African nations saw double-digit declines.

The impact is widespread: hotels in New York and Washington DC are seeing weaker occupancy, border towns like Buffalo report fewer tourists, and cultural venues are cutting back programs. Reports estimate Canada’s drop alone could cost the US USD 2.1 billion annually and 14,000 jobs.

Domestic travel is up slightly—FAA data show a 2 percent rise in US flights—however, American tourists do not spend at the same levels as international visitors.

To counter the slump, tourism boards are running marketing campaigns, shifting focus to domestic travelers, and urging policy changes on visas and messaging.

Experts warn recovery could take years unless affordability improves and the US regains its reputation as a welcoming destination.