The US was one of the only major global destinations to see international visitor spending decline in 2025, even as global travel overall hit new highs. Foreign visitor spending in the US fell $8.4 billion in 2025 compared to 2024, according to the World Travel and Tourism Council, and the slump has continued into 2026: overseas arrivals were down 4.2% in January, marking a ninth straight month of declines, and April arrivals fell 14.1% year-over-year.
Travel industry analysts point to a specific mix of causes: expanded social media screening at entry points, travel bans now covering close to 40 countries, and slower visa processing that’s made entering the US feel less predictable for travelers who have other destinations to choose from. Germany’s government went as far as issuing a formal travel advisory warning its citizens that holding a valid US visa doesn’t guarantee entry, after multiple German nationals were detained and questioned at US borders.
Canada’s Drop-Off Is Its Own Story
Canadian visits to the US fell roughly 22% in 2025, a decline tied to both the tariff dispute and broader anti-Canada rhetoric out of Washington. The local effects are concrete: Minneapolis lost an estimated $81 million in a single month tied to fewer Canadian visitors attending regional sporting events, and Florida has now seen two consecutive quarters of declining tourism, with over a million fewer visitors crossing into the state.
The Industry Impact Is Already Showing Up
Washington, DC recorded a record number of permanent restaurant closures in 2025, while new restaurant openings slowed by roughly 30%, a combination hospitality groups tie to both the tourist slowdown and labor shortages in kitchens that have historically relied on immigrant workers. Las Vegas tourism is down 7.5% over the same stretch. The State Department is now preparing to revoke business and tourism visas for up to 200,000 people with pending asylum cases, a move that would add another layer of uncertainty for an industry already absorbing a multi-billion-dollar shortfall.
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