Now, Tourism Slumps Hit Nevada, Hawaii, California, and US Border States as International Visitors Stay Away During This Peak Summer Travel, What American Tourists are Thinking, Full Breakdown is Here

As sun-soaked July unfolds across America, many would expect tourist hotspots to be bursting at the seams. Yet from the dazzling lights of Las Vegas to Hawaii’s gentle shores and California’s iconic coastlines, a surprising quiet has settled over parts of the nation’s tourism economy. Despite packed highways and bustling airports full of domestic travelers, international visitors remain noticeably absent in several key states. Nevada, Hawaii, California, and border regions like Montana and Washington are all feeling the squeeze, grappling with fewer foreign guests at precisely the time they’d hoped for a summer boom.

But amid these shifting tides, American tourists are stepping in to fill the gaps—though not quite in ways that fully replace lost international spending. So what’s really happening on the ground? And how are travelers, businesses, and local economies adapting? Here’s the full story behind this unexpected summer slump—and what it means for the future of U.S. travel.

US Tourism Takes an Uneven Turn: States Grapple With Summer Slumps

As America basks in another sunlit summer, the travel industry should be riding high. From beaches to bustling cities, July has always been prime season for tourism revenue. Yet behind the fireworks and full highways, a different story is unfolding. Several U.S. states—particularly those long reliant on international travelers—are reporting noticeable dips in tourism, even as domestic travel soars.

The causes are complex: lingering visa challenges, shifting perceptions of the United States, the strong dollar, and specific local factors are shaping a landscape where winners and losers are emerging.

Nevada’s High Stakes Gamble: Vegas Visitor Numbers Fall Short

Nevada, and especially Las Vegas, has long been America’s glittering symbol of tourism success. But in 2025, the house isn’t winning as often as usual.

Through early July, Nevada’s visitor numbers are down roughly 6.5% compared to the same period in 2024. Airport traffic, gaming revenue, and hotel occupancy rates have all declined. Las Vegas, a city that thrives on a steady churn of domestic and international tourists, is feeling the pinch.

Part of the challenge lies in cost. Visitors are complaining about soaring prices—from resort fees that pad hotel bills to $20 cocktails and $50 breakfasts. “Vegas has gotten ridiculous,” one frequent visitor told reporters earlier this year.

There’s also the issue of international tourism. Canadian air arrivals fell 22% in May compared to the year before, and overall international visitors to Las Vegas are down nearly 9%. Political tensions and the strong dollar have only deepened the slump.

While domestic travel is still bringing people to Vegas, industry insiders note that fewer international guests means lighter spending on high-end dining, luxury shopping, and big-ticket shows. For a city built on big bets, the current numbers feel uncomfortably low.

California Confronts an Unexpected Tourism Shortfall

California has always been a powerhouse for both domestic and international tourism. Its cities, national parks, and coastal drives lure millions every year. Yet in 2025, the Golden State has encountered turbulence of its own.

International visits to California are down about 9.2% compared to last year. The drop is particularly evident in cities like San Francisco, where famed attractions such as Fisherman’s Wharf, Chinatown, and iconic cable cars are drawing smaller crowds than anticipated.

The broader implications are serious. California’s economy depends heavily on tourism, and international visitors account for a significant share of high-value spending. The U.S. Travel Association has warned that the country as a whole may lose up to $12.5 billion in international visitor spending this year—and California stands to absorb a large chunk of that shortfall.

In cities like Los Angeles and San Francisco, tourism dollars fund public services ranging from transportation to cultural institutions. When those funds dip, local governments feel the squeeze.

Border States Feel the Canadian Chill

Beyond the high-profile tourist hubs, several U.S. border states are quietly wrestling with their own tourism declines. Washington, Montana, Michigan, Illinois, Florida, and Colorado all share one thing in common: a steep drop in Canadian visitors.

So far this summer, Canadian tourism to the U.S. is down approximately 20% compared to last year. That’s no small matter for border communities, where day-trippers and longer-term Canadian tourists fill hotels, shop in local stores, and dine in restaurants.

Take Montana and Washington as examples. Both saw strong domestic travel during the July Fourth holiday, but many businesses remain anxious. Retailers and restaurants in border towns have been quick to point out that Canadian travelers often spend more than their American counterparts—particularly on shopping and leisure activities.

Analysts attribute the Canadian decline to several factors. A weaker Canadian dollar stretches travel budgets. Rising travel insurance costs and uncertainties over border policies have further dampened enthusiasm. Domestic visitors, while plentiful, aren’t fully closing the revenue gap left by absent Canadians.

The Bigger Picture: Visa Woes and Global Perceptions

These state-level stories share common threads. The most significant is the ongoing challenge of U.S. visa processing. Travelers from Europe, Asia, and Latin America continue to face delays of several months just to get appointments. For many, the hassle and uncertainty make the U.S. a less attractive destination.

Beyond logistics, perceptions of the United States have shifted. Geopolitical tensions, controversial policies, and lingering memories of the pandemic era have cooled enthusiasm in key international markets. While America remains a coveted destination, travelers are weighing other options where entry requirements are smoother and costs are lower.

And then there’s the currency factor. The U.S. dollar remains strong against many other currencies, making American vacations pricier for foreign visitors. For tourists from Japan, Germany, or South Korea, this currency disadvantage often tips the scales toward alternative destinations.

Domestic Tourism Thrives—But Has Limits

Not all news is bleak. Domestic travel is booming. Roads were jammed over the July Fourth holiday, airports reported high passenger volumes, and Americans flocked to beaches, national parks, and urban centers.

States like Florida, Colorado, Michigan, Illinois, and Nevada all posted record domestic numbers during the holiday week. But even as Americans travel enthusiastically within their own country, there’s a crucial distinction: domestic travelers simply spend less.

A family road-tripping across the Midwest may opt for modest accommodations and skip expensive experiences. By contrast, international visitors often stay longer and splash out on high-end activities. That difference in spending matters deeply for states and cities reliant on tourism taxes and premium visitor dollars.

Looking Ahead: Challenges and Possibilities

Despite the current dips, many in the tourism industry remain cautiously hopeful. The U.S. Department of Commerce projects a gradual recovery in international travel by late 2026, assuming no new geopolitical or health crises emerge.

Industry groups are urging policymakers to prioritize visa reform and invest in marketing campaigns to refresh America’s image abroad. Some destinations are already adjusting their strategies, offering discounted hotel rates, bundled attraction passes, and partnerships with airlines to lure back hesitant travelers.

But for now, the numbers remain a sobering reality. From the neon lights of Las Vegas to Hawaii’s golden beaches, several American states are discovering that winning back the world’s travelers will take more than fireworks and summer sunshine. It will take policy shifts, thoughtful outreach, and a global welcome mat rolled out in earnest.

A Holiday Traditionally Marked by Crowds, Fireworks — and This Year, Unexpected Vacancies

For decades, America’s Independence Day has meant more than fireworks bursting in the summer sky. It’s been the high season for bustling hotels, jam-packed beaches, and millions of travelers crisscrossing the country to celebrate freedom under a cascade of red, white, and blue.

But this year’s Fourth of July told a slightly different story. While highways were busy and domestic travel buzzed along, key U.S. tourism hubs recorded noticeable dips in both visitor numbers and spending. Underneath the celebratory spirit, the industry confronted a reality: international tourism, especially, continues to lag significantly behind pre-pandemic levels.

International Arrivals Still Short of Pre-Pandemic Levels

The decline in overseas visitors isn’t new, but its persistence is rattling stakeholders. As of mid-2025, international arrivals to the U.S. hovered around 80% of 2019 volumes—a stubborn gap that many believed would have fully closed by now.

Data released this month by tourism authorities showed a 3.4% year-over-year drop in overseas arrivals in June, right on the cusp of Independence Day. That follows an 11.6% decrease reported earlier in the spring. The consequences ripple far beyond hotel bookings. International tourists tend to stay longer and spend significantly more than domestic travelers—a crucial lifeline for cities that depend on the influx of foreign visitors.

The U.S. Travel Association warned that America could lose up to $12.5 billion in international visitor spending this year alone. That’s not just a number in an economic spreadsheet—it represents jobs, local businesses, and city budgets dependent on the hospitality sector.

Myrtle Beach: A Case Study in Holiday Volatility

Few places reflect these shifting tides as starkly as Myrtle Beach, South Carolina. Traditionally one of the Southeast’s top summer destinations, the city usually hits peak occupancy during the week leading up to July Fourth.

Yet this year, Myrtle Beach saw an 8% drop in average hotel occupancy for the holiday week. The most startling figure arrived on July 2, when occupancy plummeted by a sharp 22% compared to the same date last year.

Local analysts partly blamed Tropical Storm Chantal, which churned off the coast earlier that week, scaring off some early arrivals. But even after skies cleared, the city failed to fully rebound, finishing the holiday weekend slightly below last year’s performance.

Local businesses felt the pinch. Restaurants reported lighter dinner crowds, beach equipment rentals slowed, and some entertainment venues reported lower-than-expected ticket sales.

Big-City Blues: San Francisco, Vegas, and New York See Lulls

While a tropical storm explains Myrtle Beach’s hiccup, other major urban destinations faced their own Independence Day challenges. San Francisco, Las Vegas, and New York City all recorded softer-than-expected tourism activity over the holiday weekend.

In San Francisco, iconic tourist magnets like Fisherman’s Wharf and Alcatraz tours operated below capacity. Sidewalks that would normally teem with camera-toting visitors remained noticeably less crowded.

Las Vegas saw a slight but significant decline in holiday traffic. Official data pegged visitor counts about 1.2% lower than last year, with average hotel occupancy dipping from 94.4% in 2024 to 93.1% this year. For a city where each percentage point translates into millions in revenue, even small slips are a warning sign.

Meanwhile, New York City faces a more profound crisis. Officials estimate the city could lose as many as 800,000 international visitors this year, driven by factors ranging from visa backlogs to shifting global perceptions of the U.S. This absence particularly hurts New York’s high-value attractions—Broadway theaters, luxury retail, and flagship restaurants—all heavily reliant on big-spending foreign tourists.

Visa Hurdles and Political Perceptions Take a Toll

Several interlocking forces explain why America’s international tourism remains muted, even as domestic travelers are on the move.

One of the biggest challenges is the U.S. visa system. Many travelers face months-long waits to secure appointments, deterring potential visitors. European and Asian travelers, in particular, report frustration at cumbersome paperwork and prolonged security checks.

Beyond bureaucracy, perceptions of the U.S. as a travel destination have shifted in recent years. Travel advisories issued by other governments, concerns over political tensions, and memories of harsh immigration enforcement in the past have cooled enthusiasm for visiting the U.S.

Economically, the strong dollar has also made American vacations more expensive for many international tourists. For travelers from Japan, Europe, or South Korea, the exchange rate now stretches vacation budgets uncomfortably thin.

Domestic Travel Fills Some Gaps—But Not All

It’s not all doom and gloom. Domestic travel surged over the holiday. Roads were jammed with Americans driving to lakes, beaches, and national parks. Many domestic travelers are eager to explore after pandemic-era lockdowns, and domestic leisure travel remains near record levels.

Yet there’s a catch. Domestic tourists typically spend significantly less per trip than their international counterparts. An American family driving to a regional beach town might book modest accommodations and eat at casual restaurants. By contrast, international tourists often stay longer, book premium hotels, dine out lavishly, and splurge on shopping and attractions.

For cities like New York, San Francisco, and Las Vegas, this difference in spending matters enormously. High-spending foreign visitors fuel tax revenues and sustain thousands of hospitality jobs. The absence of these travelers creates budgetary shortfalls and strains small businesses dependent on tourist dollars.

Economic Implications Loom Large

The broader economic stakes are clear. Travel and tourism contribute over $2 trillion annually to the U.S. economy and support nearly 15 million jobs. A $12.5 billion shortfall in international visitor spending represents a significant drag on local and national economic health.

In cities heavily dependent on tourism, the implications extend into public services funded by visitor taxes. Convention centers, transportation infrastructure, and even public safety programs rely on the steady income of tourism-driven revenues.

Glimmers of Hope and Industry Response

Despite these setbacks, the industry remains cautiously optimistic. The U.S. Department of Commerce projects a modest recovery in international arrivals by late 2026, provided no new geopolitical or health crises emerge.

Meanwhile, industry leaders are urging policymakers to tackle visa bottlenecks and launch campaigns to reposition America as a welcoming, safe, and accessible destination. Several tourism boards are pivoting toward emerging markets in Eastern Europe and the Middle East, hoping to diversify visitor sources beyond the traditional Western European markets.

Destinations are also crafting value-driven packages aimed at both domestic and international travelers. Discounted hotel rates, bundled attraction passes, and aggressive marketing campaigns aim to rebuild momentum ahead of future holiday periods.

A Pivotal Moment for U.S. Tourism

Independence Day has always been more than fireworks—it’s a pulse check on America’s tourism economy. This year, while the sky lit up with color, the tourism industry grappled with quieter streets, cautious spending, and complex global dynamics still echoing from the pandemic era.

Whether the U.S. can fully reclaim its status as a top global destination may depend not just on marketing budgets or festive spectacles, but on deeper shifts in policy, perception, and the practicalities of crossing its borders.

One thing is certain: as America plans for future Fourth of July celebrations, the tourism sector is navigating far more than holiday traffic. It’s plotting the course back to full recovery—and hoping next year’s fireworks will shine on bustling streets once again.

US States Face Tourism Slump This Summer as Global Visitors Stay Away

A Surprising Chill in the Midst of Summer Travel

In a season that should be all sun, sand, and the jingle of cash registers, several U.S. states are confronting an unexpected cool-down in their tourism economies. As July 2025 unfolds, destinations from Hawaii’s beaches to Nevada’s neon lights are reporting visitor numbers that fall short of expectations.

While domestic travel remains robust, a troubling pattern has emerged: the international visitors many states rely upon haven’t fully returned. And that absence is echoing through hotel lobbies, restaurant dining rooms, and city budgets nationwide.

Las Vegas: A Glittering City Dimmed by Fewer Tourists

Few American cities symbolize tourism quite like Las Vegas. But the Entertainment Capital of the World is in the midst of a reality check.

Through the first half of 2025, Las Vegas visitor totals are down 6.5% year-over-year. McCarran International Airport has seen steady declines in international arrivals. May brought an especially harsh blow: Canadian air arrivals fell 22% compared to the prior year, while total international visits dropped nearly 9%.

What’s behind the slowdown? Analysts point to a cocktail of factors. Rising hotel prices have triggered visitor complaints about so-called “nickel-and-diming,” from resort fees to inflated restaurant bills. In addition, the strong U.S. dollar makes gambling, shows, and luxury shopping pricier for foreign guests.

Local businesses, meanwhile, are caught in the crossfire. Casinos are still buzzing on weekends, but midweek room rates are softening, and smaller entertainment venues report leaner ticket sales. For a city where tourism fuels the economy, even small drops carry outsized consequences.

Hawaii’s Island Paradise Facing Softer Surf

Thousands of miles from the neon glow of Las Vegas, Hawaii faces its own sobering tourism forecast.

As of June, passenger counts in the Hawaiian Islands were trailing behind the same period in 2024. Projections now suggest visitor arrivals could fall by 4% over the next two years, translating into an estimated $1.6 billion decline in spending by 2026.

The state’s tourism authority identifies two key culprits: fewer arrivals from Japan and Canada. In June, both markets posted double-digit percentage declines, a worrisome trend for islands that have historically relied heavily on these travelers.

Although American tourists continue flocking to Hawaii’s beaches, domestic visitors typically spend less than their international counterparts. That’s creating a gap in hotel revenues, upscale dining, and luxury shopping that locals worry might take years to close.

Forecasts now suggest Hawaii may not fully recover its pre-pandemic visitor volume until 2028—a sobering prospect for the Aloha State’s economy.

California Feeling the Pinch of Fewer Global Guests

California has long worn the crown as the United States’ most visited state by international travelers. But even the Golden State is grappling with a tourism shortfall this summer.

In 2025, international visits to California are down 9.2% compared to last year, bucking the rebound momentum many industry insiders anticipated. The drop is particularly acute in destinations like San Francisco, where landmarks such as Fisherman’s Wharf and Chinatown report lighter-than-usual crowds.

Tourism isn’t just a lifestyle in California—it’s big business. International visitors tend to spend heavily on hotels, restaurants, and shopping, injecting billions into the state’s economy each year. The U.S. Travel Association has warned that the nation as a whole could lose up to $12.5 billion in international tourism revenue this year, with California among the states bearing the brunt.

That economic hit ripples far beyond hospitality. In places like Los Angeles and San Francisco, tourism taxes fund public services, transportation systems, and cultural programs. When fewer tourists arrive, city budgets tighten, leaving local officials scrambling to fill revenue gaps.

Border States Grapple with Canadian Shortfall

It’s not just sun-drenched destinations feeling the pain. Several border states, from Washington to Michigan, are watching Canadian tourism shrink noticeably.

Through early summer, Canadian visitation to the U.S. has declined roughly 20% compared to last year. That’s a significant drop for communities that depend on cross-border travel for everything from weekend shopping trips to longer vacations.

In places like Montana and Washington, tourism boards have reported strong domestic travel over the July Fourth holiday. Yet those gains haven’t offset the missing Canadian dollars. Local businesses near the border—restaurants, retail outlets, and hotels—are particularly vulnerable to this shift.

Analysts cite several reasons for the Canadian shortfall: a weaker Canadian dollar, increased costs for travel insurance, and lingering apprehension over cross-border policies. While domestic tourism is helping to keep many businesses afloat, the international gap remains financially painful.

Visa Hurdles and Global Perceptions Shape the Landscape

Beyond individual states, broader forces are at play in suppressing America’s inbound tourism numbers.

One of the most significant obstacles remains the U.S. visa system. Travelers from Europe, Asia, and Latin America are encountering prolonged delays and bureaucratic hurdles when trying to secure visas. Appointments can be scarce, and processing times often stretch for months.

Meanwhile, perceptions of the United States as a travel destination have shifted. Political tensions and controversial policies in recent years have fueled skepticism overseas. Travel advisories issued by foreign governments have also sown hesitation, especially among travelers weighing other destinations in Europe or Asia where entry requirements are simpler.

And then there’s the mighty U.S. dollar. Its strength against many global currencies has made American vacations costlier for foreign visitors. For middle-class tourists from countries like Japan, Germany, and South Korea, that extra expense can mean choosing a more affordable destination.

Domestic Tourism Booms—but Can’t Fully Close the Gap

While international tourism has stumbled, domestic travel has boomed this summer. Over the July Fourth weekend, highways were clogged, airports were busy, and American families flocked to national parks, beaches, and theme parks.

States like Florida, Colorado, Michigan, and Nevada all reported record domestic travel during the holiday week. However, this homegrown surge doesn’t entirely compensate for international losses.

Domestic travelers tend to spend less per day than their international counterparts. A U.S. family on a road trip might choose modest hotels, dine at fast-casual restaurants, and limit shopping splurges. In contrast, foreign visitors often book premium accommodations, take guided tours, and engage in high-spend activities.

That spending gap matters. For states where tourism drives major chunks of tax revenue, fewer high-value tourists translates to budget shortfalls that could affect public services and infrastructure projects.

Industry Response and Hope on the Horizon

Despite this summer’s sobering numbers, many tourism leaders remain cautiously optimistic. Federal forecasts suggest international arrivals could recover by late 2026, assuming no new geopolitical shocks or global health crises emerge.

Industry groups are lobbying for faster visa processing, new marketing campaigns to reshape America’s global image, and strategic targeting of emerging travel markets in Eastern Europe and the Middle East.

Meanwhile, individual destinations are offering creative incentives: discounted hotel rates, bundled attraction passes, and partnerships with airlines to lure travelers back.

For now, though, the reality remains that several states—from Nevada’s casinos to Hawaii’s shores—are navigating a slower-than-expected recovery. The fireworks may have dazzled over the Fourth of July, but behind the celebrations, the U.S. tourism industry knows it still has work to do to bring back the world.