In a significant downturn for the tourism sector, cities like Las Vegas, New York, Colorado, Maine, New Hampshire, Washington, and Texas are witnessing a considerable drop in inbound tourism. Key source markets are confronting a combination of deterrents that include a robust U.S. dollar against a weakened Canadian dollar, elevated airfares and hotel costs, and prolonged waiting times for visa appointments coupled with stricter entry requirements for long-haul travelers. This decline in visitors has been further exacerbated by trade tensions and the implications of election-year politics, commonly referred to as the “Trump slump,” which have redirected travel to competing destinations.
Adding to the challenges are weather-related issues like extreme heat and wildfires, contributing to a decreased demand for travel. All these factors combined have led to a noticeable drop in tourist activities across several states. For instance, the volume of same-day cross-border trips from Canada has declined, overall international entries have softened, pedestrian counts on the iconic Las Vegas Strip have diminished, and key attractions in New York are observing fewer visitors.
The Las Vegas Convention and Visitors Authority has reported an alarming 11.3% drop in visitor volume for the month of June compared to the previous year, with international arrivals plummeting by 13%. While statistical figures paint a troubling picture, they also reveal the unseen reality of missing tourists. These visitors typically filled hotel ballrooms, thronged the Strip’s walkways, and eagerly queued for headline shows. As a result, hotel occupancy rates in Las Vegas have dropped from 85.2% to 78.7%, with average daily room rates experiencing nearly a 7% decrease and revenue per available room plummeting by 14%. This marks the most significant single-month revenue decline in over ten years, leading to dimmer casino floors and a reduction in hotel dining reservations.
Service employees in the hospitality industry are feeling the impact of this downturn acutely. Cocktail servers report reduced gratuities, while hotel housekeepers are finding their shifts cut back. Many in the sector now face financial uncertainty, prompting discussions of supplemental employment just to make ends meet. One longtime hospitality worker remarked, “The plans for a mortgage and a kid are still on the table, just the date has moved indefinitely,” reflecting the stark reality many service workers are facing.
Similar trends are unravelling in New York City, where international arrivals are projected to stagnate, with estimates suggesting a 17% drop in foreign visitors by 2025, equating to nearly two million fewer travelers. Economists predict this contraction will result in a loss of over $4 billion in foreign spending, an amount that could potentially rise to $6 billion with an expanded decline of 25%. The reduced influx of international tourists is creating significant strain on the economic fabric of New York City, where Broadway shows that once welcomed large numbers of overseas attendees are now seeing disappointing mid-week ticket sales. Retailers along Fifth Avenue have begun to report weaker same-store sales, and major attractions like the Statue of Liberty and Times Square are experiencing notably lower visitor volumes compared to past summers.
Meanwhile, in Colorado, the state’s economy, heavily reliant on winter skiing and summer outdoor activities, has also fallen victim to declining international tourist numbers. Compared to the previous summer, arrivals from Europe have decreased by 39%, and Canadian visitation has plummeted by 58%. This sudden dip in visitors has made mountain resorts such as Aspen and Breckenridge noticeably quieter than in years past. Local businesses that typically benefit from seasonal spikes in tourist activity are recording lower sales and fewer future bookings, putting the livelihoods of freelancers in the ski and adventure tourism sectors at risk as they face reduced work schedules.
Further east, Maine is confronting a concerning drop in cross-border travel from Canada, a demographic that has historically supported the state’s local economy. By late July 2025, land entries from Canada are expected to have decreased by 28%, pushing the year-to-date figures down by 25% compared to the previous year. In spite of this downturn in cross-border traffic, Maine has seen robust domestic tourism, with Acadia National Park enjoying its highest visitor count in over thirty years at 797,000 guests. Portland International Jetport is also nearing record passenger figures, yet this domestic influx is not sufficient to mitigate the economic impacts of absent Canadian tourists who traditionally support small motels and coastal businesses.
New Hampshire and Vermont are similarly experiencing a drop in Canadian visitors, leading to revenue declines of 20% to 30% for small businesses that have long relied on this demographic. In Washington state, home to the busiest land border with Canada, local economies are witnessing the effects of reduced cross-border traffic. Once bustling towns that thrived on frequent day-trips from Canadian shoppers are now seeing empty parking lots and boarded windows as visitor numbers dwindle. Rising costs of travel, including petrol and insurance, have deterred potential Canadian visitors from making their usual trips to Washington’s retail and dining hubs.
Seattle, a key entry point in the Pacific Northwest, is grappling with its own set of tourism challenges. The city is facing a decline in long-haul international arrivals, leading to cruise operators announcing itinerary cuts and low passenger counts. Despite the city’s overall robust weekday demand, the combined pressures of reduced Canadian visits are leading to significant declines in hotel occupancy rates. Major urban centers in Texas are echoing these trends, as the state reports declining international arrivals—particularly from Latin America and European markets—over the last year. Urban areas like Houston, Dallas, and San Antonio are starting to see a pattern of room-night cancellations, leading operators to be cautious while watching for potential permanent rate declines.
The downturn is particularly acute among Canadian travelers, who historically form the largest segment of international visitors to the U.S. Recent statistics reveal that Canadian land border entries into the U.S. have fallen more than 30%, while air travel from Canada has decreased by over 20%. For states adjacent to the border—Maine, Vermont, New Hampshire, Washington, and Michigan—this downturn has delivered a sharp economic blow.
The service sector, which employs millions of Americans, is at the forefront of this crisis. From bartenders to entertainers, workers dependent on tourist traffic are seeing thinner crowds and are consequently facing reduced earnings. Many have experienced involuntary cuts to work hours, resulting in a rush to find additional employment or to delay important life milestones.
Stakeholders within the tourism industry are raising concerns that exempting tips from payroll taxation will not solve the underlying problems that persist. A tipped employee on the Las Vegas Strip articulated the sentiment succinctly: “Foot traffic drives tips, period. Fewer guests simply mean fewer revenue opportunities, regardless of the tax exemption.”
The World Travel and Tourism Council is projecting that the U.S. may lose as much as $12.5 billion in inbound expenditures from non-resident visitors by 2025. While domestic travel remains strong in certain areas, it cannot replace the deficit created by falling Canadian and international traffic. Destinations across the nation—from Nevada to New York, from Colorado to Maine, and beyond—are now facing the challenge of contending with a revenue model deeply affected by a prolonged period of international hesitation.
As the landscape of U.S. tourism continues to evolve, cities like Las Vegas must adapt to a harsh reality: a significant reduction in international and Canadian visitors is likely to reshape the industry for years to come. Without intervention and strategic redirection, the emblematic destinations that once thrived on robust tourism may struggle to recover from these profound changes.
image source from：travelandtourworld
