Now, Tourist Arrivals to the US are Declining, Canada, Germany, UK, France, and South Korea See Drops, But Domestic Travel Booms, New Report and Full Breakdown Inside

After years of surging crowds and record-shattering visitor numbers, the United States is facing an unexpected quiet on its borders. Fewer tourists are arriving from some of America’s most loyal travel markets, sparking concerns across the tourism sector and leaving iconic destinations from New York to Los Angeles noticeably lighter on international accents this summer.

Fresh data released this July paints a sobering picture: visitor arrivals from countries like Canada, Germany, the UK, France, and South Korea have dipped significantly compared to last year. These are nations that, for decades, have sent millions eager to walk Times Square, stand awestruck at the Grand Canyon, or shop along Chicago’s Magnificent Mile. But shifting economic currents, rising visa hurdles, currency fluctuations, and the lingering shadow of geopolitical tensions are forcing many would-be visitors to postpone or cancel American travel plans altogether.

Canada, traditionally America’s top tourism partner, has seen a striking drop in cross-border trips. German travelers, known for their love of U.S. road trips and national parks, are also fewer in number. The UK, France, and South Korea, each strong pillars of U.S. inbound tourism, show equally worrying downward trends.

Yet amid this international softening, there’s a parallel story of remarkable resilience and optimism. Domestic travel within the United States is booming like fireworks on the Fourth of July. Americans are hitting the roads, skies, and rails in record numbers, exploring national parks, vibrant cities, coastal escapes, and hidden small-town gems. The same spirit that fueled massive travel numbers over Independence Day seems poised to sustain momentum through the rest of the year.

It’s a tale of two travel realities unfolding at once: fewer international visitors on American shores, but an unquenchable domestic wanderlust redefining the tourism landscape. In this special report, we break down where the drops are sharpest, why travelers are hesitating, and how domestic tourism is picking up the slack. The shifts unfolding now could reshape how the world sees — and visits — the United States for years to come.

Skies of Change: Why Fewer Tourists Are Choosing the United States — and Who’s Still Coming

The United States has long been a beacon for travellers seeking iconic city skylines, sprawling natural parks, and cultural marvels known the world over. Yet as 2025 unfolds, America’s tourism landscape is experiencing turbulence few saw coming.

Across continents, fewer visitors are packing their bags for U.S. adventures. Instead, they’re choosing alternate destinations—or staying home entirely. From Canada’s quiet border crossings to Europe’s subdued airport gates, the numbers reflect a significant shift in global travel sentiment. And while pockets of resilience remain, the stakes for America’s tourism economy have rarely been higher.

Fewer Stamps in the Passport: Who’s Not Coming

It’s not one single country turning away from the U.S. — it’s a wave. Data through mid-2025 paints a striking picture of declining interest from some of America’s historically strongest tourism markets.

Canada, the United States’ closest neighbour and historically its largest inbound market, has pulled back dramatically. Bookings from Canadian travellers dropped as much as 70–76% in early 2025 compared to last year. Air arrivals fell nearly 24% in May alone. Even day trips and road crossings have shrunk. In March, vehicle entries were down 23%, and the ripple effects have hit border towns and duty-free businesses with revenue drops as steep as 80% in some places.

Western Europe has also cooled. German arrivals were down 28% in March. Spain sent 25% fewer travellers, and the U.K. saw an 18% decline. France recorded a softer but still significant 8% drop year-on-year in April.

Latin America has joined the retreat, with visitors from Colombia decreasing by a sharp 33%. Even from the other side of the Pacific, South Korea’s inbound numbers slid by 15%, while arrivals from Australia fell by 7%.

These figures highlight a growing reality: markets that once sustained America’s tourism boom are either pausing or actively diverting their travel plans elsewhere.

The Reasons Behind the Retreat

Why are millions of would-be visitors deciding against a trip to the U.S.? It’s a complex puzzle, with several overlapping forces reshaping the travel map.

Visa Bottlenecks and Bureaucratic Barriers

One of the biggest frustrations for international travellers is simply getting permission to enter the U.S. Visa appointment wait times have ballooned in many countries. In some places, travellers are waiting over six months for an interview slot.

While the U.S. remains an appealing destination, the logistics of securing a visa can be overwhelming. Competing destinations like Europe, Southeast Asia, and Latin America have meanwhile simplified entry processes, rolling out e-visas and visa waivers to attract visitors who are deterred by American red tape.

Geopolitical Tensions and Economic Ripples

Travel doesn’t happen in a vacuum. Political relationships and economic realities shape tourism decisions as much as the promise of sandy beaches or Broadway lights.

Trade disputes have soured relations with Canada and Europe, sparking boycotts in some quarters and dampening enthusiasm in others. The strong U.S. dollar, while great for American travellers abroad, makes visiting the U.S. increasingly expensive for foreign tourists. Everything from hotel rooms to restaurant meals becomes costlier compared to other destinations.

Perception and the Power of Sentiment

Tourism isn’t purely transactional; it’s deeply emotional. Perceptions of safety, hospitality, and how welcome travellers feel play huge roles in destination choice.

Stories—both documented incidents and rumours—about detentions, secondary screenings, and unwelcome political rhetoric have taken a toll on America’s image among international visitors. Even when security concerns don’t directly affect tourists, the perception of a destination as “closed off” or “unfriendly” can push people to look elsewhere.

The Winners: Who’s Still Coming to the U.S.?

While many traditional markets are pulling back, not every region has turned its back on the American dream. In fact, some surprising bright spots hint at where future growth might lie.

Eastern Europe, for instance, has shown resilience. Poland saw outbound travel rise 23%, and Slovenia reported a 44% increase in travel abroad. Although these numbers don’t all translate directly into U.S. trips, they reflect markets where travel appetite remains high.

The Middle East is another glimmer of hope. Air arrivals from several Middle Eastern countries actually grew slightly year-on-year as of March. This region’s travellers remain intrigued by America’s blend of luxury shopping, education opportunities, and cultural icons.

The Economic Fallout: Billions on the Line

The stakes in this shifting tourism tide are enormous. International visitors don’t just buy plane tickets—they fuel restaurants, hotels, museums, and local attractions. In 2024, international tourists spent around $181 billion in the United States. A projected 7% drop in 2025 could mean a staggering $12.5 billion in lost revenue for cities and states counting on tourism dollars.

New York City, a flagship American tourism destination, is already seeing fewer foreign faces. Hotel occupancy rates are sliding, Broadway ticket sales are softening, and luxury shops report less foot traffic from overseas shoppers.

Border towns in Arizona, Texas, and New York state are sounding alarms about lost Mexican and Canadian visitors. These communities depend on cross-border travel for everything from shopping to dining to recreational activities.

The Road to Recovery: Can America Win Back Tourists?

Despite the grim headlines, there’s cautious optimism in industry circles. The U.S. National Travel and Tourism Office (NTTO) forecasts that the country could welcome 77.1 million international visitors in 2025—a 6.5% increase over 2024—with a return to pre-pandemic levels potentially by 2026.

But reversing the current slide will take more than hope. Tourism experts and industry leaders emphasize several critical actions:

• Streamline visa processes. Reducing appointment backlogs and making visas more accessible is essential for reclaiming lost travellers.
• Rebuild America’s image. Beyond marketing slogans, the U.S. needs to project a consistent, welcoming message to the world.
• Highlight value despite costs. With the dollar strong, offering value-added packages, special experiences, and cultural events could tip the scales in America’s favour.
• Embrace new markets. Regions like Eastern Europe and the Middle East could become future cornerstones of inbound tourism if nurtured with targeted promotions and partnerships.

Americans Hit the Roads and Skies in Record Numbers for Independence Day 2025- A New Hope

America’s love affair with summer travel blazed brighter than fireworks this Independence Day, as millions packed airports, highways, and beaches across the nation. Despite economic headwinds and lingering global uncertainties, travel demand surged to levels not seen in over a decade, setting records in both air and road journeys.

Sky-High Numbers at Airports

Airports across the United States buzzed with activity as the holiday week unfolded. According to TSA, over 18.5 million air travelers passed through security checkpoints between July 1 and July 7, 2025. The busiest day came on Sunday, July 6, when nearly 2.9 million people flew—marking one of the highest single-day figures in TSA history.

Flight data showed the skies were indeed crowded: U.S. airlines operated more than 50,000 flights on Monday, July 7 alone, reflecting a surge in demand. Domestic airfare trends offered a small silver lining, dipping 3% lower than last year’s prices, while international fares dropped by about 13%, making overseas adventures more enticing for holidaymakers.

Road Warriors Roll On

While airports bustled, the highways were hardly empty. AAA reported a projected 72.2 million Americans traveling by car during the holiday week—a figure 1.7 million higher than last year and surpassing pre-pandemic numbers.

Peak traffic hours turned highways into slow-motion rivers of brake lights, especially between 2–6 p.m. on July 3 and 12–7 p.m. on July 4. Transportation analytics firm INRIX warned that some metro areas saw travel times up to 67% longer than normal.

States scrambled to ease congestion. In Michigan, roadwork restrictions were lifted over the holiday weekend, freeing up over 60% of active construction zones to keep traffic moving.

Regional Insights and Local Trends

While the travel boom was nationwide, certain regions saw particularly strong activity. Virginia alone expected over 2.1 million travelers, while Connecticut forecast nearly 3.65 million residents hitting the road or taking short getaways.

Attractions like national parks, coastal destinations, and city festivals welcomed crowds eager for sunshine and celebration. Yet travelers also took advantage of technology to avoid the worst bottlenecks—using apps for real-time traffic and leaning on TSA PreCheck lanes at airports.

Affordability and Travel Behavior

Despite inflation concerns earlier in the year, Americans proved determined to travel. Competitive airfare pricing and declining international rates tempted many to plan bigger adventures. Car trips remained king, with families seeking cost-effective alternatives to expensive flights or last-minute tickets.

AAA and other experts urged travelers to conduct vehicle safety checks before hitting the road, while the TSA advised passengers to arrive early to handle holiday crowds

Independence Day 2025 underscores a remarkable resilience in American travel habits. After years of pandemic disruptions, the desire to explore, reunite, and celebrate remains undimmed. Yet the record-setting figures also raise questions about infrastructure, sustainability, and how travel providers will manage future surges.

For now, one thing is clear: America’s spirit of adventure is alive and well, shining as brightly as the fireworks that lit up skies from coast to coast.

Fading Stars and Shifting Skies: Why Tourists Are Turning Away From the United States

For decades, the United States has been the ultimate dream destination for global travelers. From the neon pulse of Times Square to the wild vistas of Yellowstone, “Brand USA” stood for limitless experiences, world-class hospitality, and cultural icons known everywhere from Berlin to Buenos Aires.

Yet, as we step deeper into 2025, cracks are spreading through the bedrock of America’s tourism dominance. The numbers tell a stark story: international visitor arrivals to the U.S. fell by 3.4% year-over-year in June, leaving traffic hovering at only about 80% of 2019 levels. While domestic travel remains solid, the U.S. is facing an inbound tourism slump that threatens billions in revenue—and the ripple effects stretch far beyond airports and hotel lobbies.

The Numbers Behind the Slide

Official reports and industry analyses paint a sobering picture. In the first quarter of 2025 alone, inbound tourism to the U.S. dropped by 3.3% compared to the same period last year. Even once-reliable markets like Europe and Canada are faltering. For instance, arrivals from Europe were down 17% in March, while Mexico—a crucial neighbor and source market—saw a dramatic 23% decline.

Industry watchers expect the trend to persist. Some forecasts suggest a potential annual decline of 7–9.4% in 2025, the sharpest dip since the global financial crisis. That translates into staggering losses: up to $25 billion in visitor spending could evaporate this year, according to several industry groups.

Hotels, restaurants, museums, and attractions feel the pinch. Florida, for example, has already reported 9.2% fewer overseas visitors, and tourism-dependent businesses in places like New York City and the Pacific Northwest are tightening budgets and trimming staff.

The Perfect Storm: Why Tourists Are Staying Away

Several forces have combined into a perfect storm for U.S. tourism. Some of these are long-simmering issues, while others are new shocks reshaping travel decisions globally.

Visa Hurdles and Red Tape

Many potential visitors now face longer waits for U.S. visas. As of mid-2025, it’s not uncommon for applicants in certain countries to wait over six months for interview appointments. This bottleneck comes precisely as other destinations—Europe, Asia, and Latin America—have simplified entry processes to lure international tourists.

Travelers increasingly choose the path of least resistance. With limited vacation time and rising costs, a cumbersome visa process becomes a deal-breaker.

The Weight of Global Conflicts and Politics

Geopolitics casts a long shadow over travel plans. Trade tensions and diplomatic strains have fueled a drop in arrivals from Europe, Canada, and parts of Asia. The strength of the U.S. dollar also deters many would-be visitors, making everything from Broadway tickets to hotel rooms more expensive compared to other destinations.

Moreover, shifting global alliances and regional conflicts have left travelers cautious about venturing into politically fraught territory—even if the risks don’t directly touch American soil. The perception of the U.S. as less welcoming has grown in some regions, driven by past policies and new restrictions.

Safety, Sentiment, and Perception

Beyond practical hurdles, travel is emotional. Safety concerns, cultural perceptions, and political rhetoric weigh heavily on a traveler’s choice. Some international tourists fear negative encounters or feel uncertain about how they’ll be received as foreigners.

Recent travel advisories issued by various countries about visiting the U.S. have amplified these concerns. Even anecdotal reports—whether true or exaggerated—can shape public opinion and push travelers toward destinations perceived as friendlier or more predictable.

Global Competitors Step Up

As the U.S. grapples with declining arrivals, other destinations are seizing the moment. The European Union’s borderless Schengen area remains a powerful magnet for travelers seeking diverse experiences without bureaucratic hassle. Japan, Thailand, and Vietnam are aggressively marketing new attractions and simplifying entry for tourists.

Even Latin American destinations like Colombia and Peru are wooing travelers who might otherwise have chosen U.S. cities. Competitive airfare deals, innovative tourism products, and active digital marketing have shifted traveler interest.

The Economic Fallout

The economic stakes are enormous. International visitors contribute far more than just ticket sales—they fuel jobs, support small businesses, and keep entire cities vibrant. The U.S. Travel Association estimates that international visitors spent around $181 billion in 2024. A projected 7% drop in 2025 would mean roughly $12.5 billion less in local economies.

New York City, often the country’s primary magnet for foreign tourists, has already begun feeling the pain. Broadway ticket sales have softened, hotel occupancy rates are dipping, and luxury retail stores report fewer big-spending customers from abroad.

Smaller destinations are even more vulnerable. Border towns in states like Arizona and Texas report reduced traffic from Mexico, cutting into revenue for restaurants, souvenir shops, and tour operators. National parks, too, are bracing for fewer international visitors—a loss not just of dollars, but of cultural exchange.

Glimmers of Hope and Paths to Recovery

Despite the gloomy headlines, hope remains. The National Travel and Tourism Office (NTTO) forecasts a rebound, projecting 77.1 million international visitors in 2025, a 6.5% increase over 2024. By 2026, the U.S. could surpass pre-pandemic levels, welcoming over 85 million visitors.

But achieving that rebound requires decisive action:

• Streamlining Visas: Accelerating visa processing times could immediately remove a major barrier. Industry advocates are pressing the U.S. State Department to prioritize tourism-related visas in key markets.
• Rebuilding Reputation: Marketing campaigns alone can’t erase lingering negative perceptions. A sustained effort toward welcoming messaging, coupled with real policy changes, is essential to rebuild traveler confidence.
• Competitive Pricing: With the dollar remaining strong, the U.S. must market value-added experiences and competitive travel packages to offset higher costs.
• Partnerships: Collaboration between federal, state, and local tourism bodies is crucial. Joint efforts with airlines, hotels, and attractions can amplify reach and messaging.

Record Numbers Take Flight and Drive

According to AAA, more than 72.2 million Americans travelled 50 miles or more during the holiday week, setting a new record for Independence Day travel. It’s a sign that, despite economic jitters and global uncertainties, Americans are prioritising experiences—and the freedom to roam.

Of that staggering total, around 61.6 million chose to drive. Highway congestion was no small feat, with INRIX warning that metro areas like Boston, Denver, and Seattle experienced travel times up to 67% longer than usual. Peak jams hit hardest on the afternoons of July 3 and July 6, as drivers scrambled to reach fireworks displays—or home again.

Meanwhile, the skies were packed, too. TSA reported screening over 18.5 million air travellers between July 1–7. The busiest day came on Sunday, July 6, when nearly 2.9 million people flew, one of the highest single-day totals ever.

Florida Leads the Pack—and Other States Shine

No destination drew more travellers than Florida. Orlando reigned as the country’s top domestic destination, thanks to its magnetic mix of theme parks, cruises, and sunny escapes. Cities like Miami and Fort Lauderdale also surged, underscoring Florida’s role as a tourism juggernaut.

Other states saw impressive action, too. In Illinois, over 4.2 million residents travelled—a record-breaking figure that reflects renewed enthusiasm for both local getaways and longer journeys. Michigan reported about 2.6 million holiday travellers, while Oregon estimated nearly 875,000 residents were on the move, mostly by car.

Notably, states like Washington, Montana, Nevada, Colorado, and Michigan all reported significant spikes in tourist activity, driven by a blend of outdoor adventure and urban celebrations.

Global Wanderlust Remains Strong

For those heading overseas, familiar favourites topped the charts. Americans flocked to destinations like Vancouver, Rome, Paris, London, and Barcelona. Canada proved especially popular, with Vancouver leading the list—a testament to its natural beauty and easy accessibility for U.S. travellers.

Europe continued to entice, driven by cultural allure and, this year, more affordable airfares. According to AAA, international ticket prices fell about 13% compared to 2024, making far-flung dreams a bit more reachable.

A Glimpse at the Future

Independence Day 2025 delivered a clear message: travel is back, big time. Despite inflationary pressures and some lingering geopolitical unease, Americans are refusing to sit still. Instead, they’re rediscovering the country—and the world—in numbers not seen in over a decade.

As the summer stretches on, industry insiders expect momentum to hold. For travellers, the only challenge might be deciding where to go next—and how early to leave to beat the traffic.

Because one thing’s for certain: America is on the move.

A Crossroads for Brand USA

Tourism is more than an economic engine—it’s the world’s most human industry, built on curiosity, cultural exchange, and shared experience. As 2025 unfolds, the United States stands at a crossroads. The drop in international arrivals is a wake-up call, highlighting vulnerabilities in the country’s approach to global tourism.

Yet the same factors that made America a dream destination for decades remain: breathtaking landscapes, vibrant cities, and a tapestry of cultures unlike anywhere else. If the U.S. can lower barriers, soften its image, and reconnect with the world’s travelers, the skies might soon be filled again with visitors eager to chase the American dream.