In 2025, tourism in the United States is facing a significant downturn, with New York and Nevada now experiencing sharp declines in visitor numbers. This disappointing trend includes key states like California, Florida, and Michigan, as international arrivals continue to fall amid rising inflation that discourages budget-conscious travelers. As costs for airfare, hotel accommodations, dining, and entry requirements increase, many international tourists are choosing to avoid trips to the U.S., opting instead for destinations perceived as more affordable and accessible.
The current climate in travel is not merely a seasonal change or a brief fluctuation, but rather a deep-rooted slowdown fueled by the rising costs associated with visiting the U.S. In April 2025, the inflation rate reached 2.3%, transforming what was once seen as a budget-friendly American vacation into a luxury that many travelers are unwilling to afford.
The impacts of this shift are most pronounced in major cities that have relied heavily on international visitors. In New York, tourism officials have just revised their visitor forecasts downward, estimating 3.5 million fewer visitors than previously expected. Instead of the anticipated 67.6 million visitors, they now project around 64.1 million will arrive by the end of 2025.
This change highlights the critical drop in international tourism. New York City expects to see 2.5 million foreign visitors fewer compared to last year, which is significant because international travelers typically prolong their stays and spend considerably more than domestic counterparts. Without these high-spending global visitors, the city stands to lose up to $4 billion in tourist spending.
Although New York showcases positive domestic tourism trends, including a thriving Broadway scene and impressive hotel occupancy rates, the absence of international tourists has left a noticeable gap.
Las Vegas is similarly grappling with dwindling visitor numbers. Reports indicate visitor counts fell by 7.8% in March and 5.1% in April compared to the previous year. Even though hotel rates have risen, averaging $203 for a room on the Strip by April, occupancy rates have dipped slightly to 84.5%, down from 85.5% in 2024.
The very foundation of Las Vegas’ appeal, which was its reputation for affordable getaways, is being shaken as tourists now view it as a more expensive destination. Complaints have risen over rising costs, with a British visitor sharing their shock at paying nearly $9 for a cup of coffee—more than double what they would spend back home.
Moreover, tourism operations that conduct excursions to awe-inspiring sites like the Grand Canyon and Death Valley have seen soft demand, primarily due to their increased overhead costs, making it challenging to provide competitive pricing or special promotions.
California, too, is experiencing a rare downturn in tourism. For the first time since the pandemic began, state officials predict a 1% decline in total visitors, with international travel set to decline by 9.2%. Key markets, including Canada, the UK, and Mexico—typically reliable sources of visitors—are seeing reduced numbers this year. The reasons cited for this disengagement often point to rising costs, lengthy visa processing times, and a growing sentiment that visiting the U.S. has become more arduous than before.
Major Californian cities such as San Francisco and Los Angeles remain attractive destinations with plenty to offer. However, the decline in global travelers is concerning for the state’s tourism economy.
The state of Florida is also feeling the pinch, especially from its northern neighbors. In the first quarter of 2025, there was a reported 3.4% drop in Canadian arrivals, with overall overseas travel seeing a slight downturn. Travelers cite common concerns—expensive airfare, currency disparities, and increasingly unfavorable political climate—particularly when vying for attention against appealing Caribbean alternatives.
While domestic tourism in Florida remains stable, underpinned by family vacations and retirees who are less affected by currency fluctuations, international tourism in hotspots like Miami and Orlando is not rebounding as it once did.
Michigan, while perhaps not as prominently featured as other major tourist destinations, is nonetheless witnessing a decline in visitors from Canada—its primary tourism market—especially in border regions. Stricter border control regulations, fluctuating currency values, and rising gas prices have resulted in a downturn in weekend visits from Canadians. Local businesses in border towns are feeling the effects, noting shorter average stays and reduced tourist activity this year.
The overarching issue confronting these states is inflation. According to Trading Economics, the annual inflation rate in the U.S. reached 2.3% for the year ending in April 2025. In addition, month-over-month increases in consumer prices have contributed to rising costs for everyday items such as food and transportation. Travelers from countries with weaker currencies are particularly sensitive to this inflation, which now positions the U.S. as a luxury destination—something that was not always the case.
As tourism boards across various states monitor the approaching summer season, major events such as concerts, sports, and holidays are anticipated to occur soon. While there’s hope for a rebound in domestic tourism, the absence of international visitors highlights a critical gap. New York hopes Broadway will draw crowds, Las Vegas is banking on mega-events like Beyoncé’s tour and the Sphere residencies, while California is attempting a pivot towards eco-tourism and local attractions. All stakeholders share a consensus: the return of international tourists is crucial for a genuine economic recovery.
In the interim, an increasing number of global travelers are sending a loud and clear message—the U.S. is currently perceived as too costly a destination. Unless significant changes occur, America’s most visited states face the daunting prospect of continuing declines in international flight arrivals, hotel occupancy, and overall economic activity related to tourism.
image source from：https://www.travelandtourworld.com/news/article/new-york-and-nevada-join-california-florida-michigan-and-more-us-states-in-facing-sharp-tourism-declines-as-international-arrivals-drop-and-inflation-pushes-out-budget-conscious-travelers/
