U.S. Tourism Slump Creates Travel Opportunities

- The United States was the only major nation to experience a decline in tourism in 2025, with a 6% drop in foreign visitors while tourism grew globally. International arrivals continued to fall in January 2026, marking the ninth consecutive month of decline. - A significant factor in the downturn is a sharp drop in Canadian visitors, who decreased by 22% in 2025, representing a loss of four million tourists and an estimated $4.5 billion to the U.S. economy. In fact, for the first time in over 25 years, Mexico surpassed Canada as the largest source of international visitors to the U.S. - The strong U.S. dollar makes the country a more expensive destination for international travelers while simultaneously encouraging Americans to travel abroad. In 2024, the number of Americans traveling internationally was 108% higher than in 2019. - Administration policies, including stricter visa rules and anti-immigrant rhetoric, have been cited as a significant deterrent for potential visitors. A survey of 6,000 travelers also pointed to concerns over gun violence and discrimination as reasons for declining interest in visiting the U.S. - The economic impact of the slump is substantial, with projections for 2025 showing a loss of between $8.3 billion and $15 billion in international visitor spending compared to the previous year. - While leisure tourism has fallen, inbound international business travel has increased, with the U.S. capturing 15% of all global business travel bookings in the first half of 2025. - Looking ahead, Oxford Economics forecasts a 3.9% growth in international travel for 2026, aided by the FIFA World Cup, but cautions that policy uncertainty may still cause the U.S. to underperform other global destinations.