US Tourism Declines Amid Global Boom

While global tourism saw a four percent increase in 2025, the U.S. was an outlier, experiencing a 4.2 percent decline in international visitors. This downturn has continued into early 2026, with January showing a 4.8% drop in foreign arrivals compared to the previous year, marking the ninth consecutive month of decline. Key European and Asian markets are pulling back, with January 2026 seeing a 7.5% year-over-year drop in visitors from Asia and a 5.2% decrease from Europe. The slump is particularly pronounced among Canadian travelers, the largest source of inbound tourism, who, after a 22% drop in 2025, are showing no signs of returning in 2026. The decline is attributed by the travel industry to a "Trump Slump," citing restrictive entry policies and anti-immigrant rhetoric. As of January 1, 2026, citizens from 39 countries face entry bans or more difficult visa procedures. This has led to a projected loss of $8.3 billion in international travel spending for the U.S. economy in 2025, a stark reversal from the anticipated $16.3 billion gain. For Los Angeles, a primary international gateway, the impact is significant. International passenger traffic at LAX in 2025 was down an estimated 2.0% year-over-year, placing it roughly 10% below pre-pandemic levels. This decline is felt across the hospitality sector, from luxury hotels to theme parks that heavily rely on high-spending international guests. In response to these challenges, the U.S. Travel Association is advocating for pro-growth policies to reduce friction for international travelers. Additionally, a bipartisan effort in Congress has introduced the VISIT USA Act to restore funding to Brand USA, the nation's destination marketing organization, to better promote the country ahead of major events. Despite the current downturn, there is optimism for the future, particularly for Los Angeles. The city is preparing for major global events, including the 2026 FIFA World Cup and the 2028 Summer Olympics, which are expected to attract millions of international visitors and provide a significant boost to the local economy. The World Cup alone is projected to bring nearly 150,000 out-of-town visitors to Los Angeles.