Tourism across the United States is experiencing a dramatic downturn that has persisted for eight straight months and is not expected to recover until at least the end of 2025. States such as Florida, Hawaii, Arizona, Michigan, Illinois, and Massachusetts have felt the impact, leading to significant changes in local economies. As international arrivals decline, particularly from neighboring Canada and Western Europe, the tourism landscape is shifting dramatically.
In Florida, a state heavily dependent on tourism, visitor numbers dwindled from 19.4 million in 2024 to 15.9 million in 2025, marking a staggering loss of 3.5 million visitors. The decline was evident throughout the year, significantly impacting the peak months of travel and creating uncertainty for the future of the state’s tourism industry. For example, October witnessed a drop from 1.5 million visitors in 2024 to 1.4 million in 2025, while similar trends continued into November and beyond, highlighting the ongoing challenges.
Despite Florida’s attractions like Walt Disney World, the Everglades, and its beautiful beaches, factors such as economic shifts and rising travel costs contributed to the overall visitor decline. Similarly, Hawaii’s tourism dropped from 1.8 million in 2024 to 1.5 million in 2025, a loss of 300,000 visitors. The drop was most visible during critical summer months, where months like June and July saw visitor reductions that raise concerns about maintaining Hawaii’s status as a premier travel destination.
Michigan also recorded significant declines, with total travelers falling from 14.4 million in 2024 to just 10.9 million in 2025. The travel figures indicate fluctuations month by month, with February showing a notable decrease with just 887K visitors compared to 995K the previous year. The tourism decline in Michigan mirrors a larger national trend, pointing to various economic factors affecting travel choices.
Meanwhile, in Illinois, the situation did not improve either, as traveler numbers fell from 6.8 million in 2024 to 5.5 million in 2025. The data reveal fluctuations, but overall, September figures showed a slight decrease compared to prior months. Massachusetts reported similar struggles, with annual statistics dropping from 3.8 million to 3.2 million, reinforcing the ongoing challenge faced by the state’s tourism stakeholders.
Arizona experienced a decline in tourism too, recording a total of 3.2 million visitors in 2025, down from 3.8 million in 2024—a net loss of 600,000 tourists. This downward trend was particularly evident in the first quarter, prompting a reassessment of the state’s tourism strategies to attract visitors once again. Several factors are contributing to these declines, including shifting consumer behaviors and economic uncertainties, which are reshaping how Americans travel.
Also noteworthy are external circumstances affecting U.S. tourism more broadly. States like Texas and New Hampshire reported significant declines in visitor numbers, contributing to local economic challenges. Texas saw a 20% decline post-evacuation bumps due to previous hurricanes, while New Hampshire faced a notable 30% drop primarily due to reduced Canadian tourist numbers.
Across the U.S., international travel continues to fall, with New York projected to see a staggering 17% decrease in international arrivals by year-end, equating to 2 million fewer visitors. This downturn reshapes local economies dependent on tourism, bringing long-term challenges in terms of revenue generation and employment.
The ongoing slump has raised alarms among industry experts and tourism associations. The World Travel & Tourism Council (WTTC) is particularly concerned, projecting a decline of $12.5 billion in international spending for 2025. Their President, Julia Simpson, has emphasized that while other countries are welcoming more tourists, the U.S. seems to be shutting its doors, representing a concerning trend.
Tourism Economics has also revised its projections after observing a national decline in traveler sentiment. Initially forecasting growth, they now predict an 8.2% overall decrease in international arrivals for 2025. Industry stakeholders recognize that recovery in the tourism sector may take several years, potentially not materializing until 2029 due to continued challenges.
The U.S. Travel Association has identified policies like increased visa fees as significant impediments to tourism growth. Their projections indicate that the reduction in Canadian visitors could cost as many as 14,000 American jobs, showcasing the direct impact of the declines on employment within the travel sector.
Focusing on regional challenges, Ted Pappageorge, head of Nevada’s Culinary Workers Union Local 226, blamed the perception of tighter immigration policies on reduced Latino visitors to Las Vegas, creating additional pressure on the hospitality industry. Amanda Hite, president of STR, identified economic uncertainty and inflation as central factors causing reduced hotel demand, emphasizing the need for industry adaptations to meet evolving traveler needs.
On a more positive note, domestic travel seems to maintain strength amidst the downturn. Recent surveys indicate that 92% of Americans plan to travel in 2025, which provides a glimmer of hope for certain regions, particularly drive-to markets. Many Americans are turning to shorter travel distances and affordable options as consumer confidence grows, with projections showing a 3.9% increase in domestic travel spending reaching $1.35 trillion.
This surge in domestic focus is benefiting regions closer to home, where trips to national parks, beach destinations, and accessible urban centers are on the rise. Meanwhile, local businesses in these drive-to markets are beginning to see increased foot traffic as Americans adapt their travel plans. However, the overall reduction in transformative tourism trends poses substantial challenges for states that rely heavily on international visitors, such as Florida and Hawaii, that will require strategic responses moving forward.
As the U.S. tourism industry navigates these ongoing challenges, adapting to changing consumer demands and external economic factors will be vital. Efforts to reshape tourism strategies to attract both international and domestic visitors will play a crucial role in rebuilding the sector and ensuring that the country reverses this worrying trend in tourist engagement. Collaboration across states, industries, and governments will be necessary, as stakeholders collectively work towards revitalizing the tourism landscape.
While the challenges remain, the resilience of the domestic travel market provides a foundation from which the tourism sector can rebuild and innovate. States must look to enhance the experience offered to travelers while targeting new markets and developing strategic marketing campaigns that highlight what makes their destinations unique in an increasingly competitive marketplace.
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