International tourism to the United States has sharply declined in early 2025, reversing previous forecasts of recovery to pre-pandemic levels. Preliminary government data shows an 11.6% drop in overseas arrivals in March compared to the same month in 2024. For the first quarter overall, arrivals were down 3.3%, with especially steep drops in air travel from Mexico, which fell by 23%.
Analysts attribute the downturn to multiple factors, including rising geopolitical tensions, controversial U.S. policies, and economic strain abroad. Canada, the largest source of foreign visitors in 2024, is seeing a particularly sharp drop. Travel booking platforms report up to a 40% reduction in U.S.-bound leisure travel from Canada, prompting airlines like Air Canada to cut back on flights to key destinations.
Tourism Economics, a leading industry forecaster, recently revised its projections, now expecting a 9.4% annual decline in international arrivals. The firm had previously anticipated growth of nearly 9%. This downturn could cost the U.S. economy an estimated \$9 billion in international visitor spending this year.
Destinations across the country—from Colorado ski resorts to Arizona golf courses—are seeing canceled trips. Industry insiders cite growing frustration abroad with U.S. leadership and policies, including tariffs and immigration enforcement, as reasons travelers are opting for alternative destinations like Europe, Japan, and South Korea.
Source: Tourism Economics
Not surprised at all and matches what we heard on our recent 2 week trip to Europe. Most of us on the plane back were US (according to the passport line) and the plane wasn’t full. The people we talked with while in Europe – 3 different countries, plus other travelers – had no plans of traveling to the US. A couple we met who were foreign on the planes we took were traveling for work. There are many places to travel in the world. Why would anyone travel to the US right now under the current administration? He’s ruined… Read more »