Wednesday, August 6, 2025
New York unites with Las Vegas, Orlando, Los Angeles, and Honolulu in facing a sudden and sharp tourism slump that is now shaking the foundation of the US travel industry. Once packed with global travellers, these iconic cities are now reporting fewer arrivals, shorter stays, and drops in spending. Together, they reflect a national trend that’s becoming harder to ignore.
The slowdown isn’t just about one city. It’s about how New York, Las Vegas, Orlando, Los Angeles, and Honolulu—all major tourism magnets—are struggling with the same issue. This sharp tourism slump is affecting hotels, restaurants, tour operators, airlines, and local workers. And it’s happening across different coasts, climates, and travel styles.

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Even with events, theme parks, Broadway shows, and beach getaways, the visitor numbers continue to dip. The reasons are many—economic uncertainty, visa delays, international travel shifts, and rising costs. But the result is the same: fewer tourists and more empty rooms.
In this full report, we explore how the US travel industry is responding to the decline. We look at data, local reactions, and possible solutions. We also examine what this means for the future of American tourism. Because when New York and Honolulu fall behind, the entire industry feels the pressure.

From Times Square to the Las Vegas Strip, this story is unfolding now—and it affects every traveller, worker, and business tied to the tourism economy.

Major U.S. Cities Face Sharp Tourism Decline in 2025

In 2025, major U.S. cities like Las Vegas, New York, Los Angeles, Orlando, and Honolulu are facing a serious tourism decline. The fall in visitor numbers, especially from international travellers, is affecting jobs, businesses, and local economies. These cities depend heavily on tourism. When visitors stay away, the whole system struggles.
Travel costs are up. Immigration rules are stricter. Trade tensions are higher. And global travellers are going elsewhere. This perfect storm has led to a tourism slump not seen in years. The result is fewer bookings, empty hotels, and billions in lost revenue.

Las Vegas: A City Built on Visitors Feels the Hit

Las Vegas relies on tourism more than any other city in America. Over 26% of its jobs come from hotels, casinos, and restaurants. In 2025, the city saw an 11.3% drop in monthly visitors compared to last year.
Hotel occupancy in June and July is down nearly 15–17%. Even gaming revenue is falling. Canadian travellers, once a reliable market, dropped by over 20%. Airlines like Flair saw huge passenger losses. High prices—like $33 bagels—aren’t helping either.

New York City: Big Apple, Big Drop in International Visitors

New York City is the top U.S. destination for foreign tourists. But in 2025, NYC expects 17% fewer international visitors than in 2024. That’s over 2.5 million lost travellers.
The impact is huge. The city could lose $4 billion in spending. While more Americans are visiting, they don’t spend as much as global travellers. Visitors from Europe, Asia, and Canada are avoiding the U.S. due to strict visa rules, tariffs, and fear of being turned away.

Los Angeles: Wildfires, Policies, and Price Hikes Scare Tourists Away

Los Angeles is another major U.S. hub feeling the pain. The city reported an 11% drop in international arrivals in early 2025. Flights from Canada are down over 70%. LAX airport reported fewer bookings too.
Tourism brought in $40 billion in 2023 and supported over 540,000 jobs. But now, hotel closures, job cuts, and wildfires are keeping tourists away. Global perception of the U.S. as unwelcoming is also a big factor.

Orlando: Theme Park Capital Faces Global Visitor Dip

Orlando welcomed over 75 million visitors in 2024. But in early 2025, international tourism dropped by 8%, especially from Canada.
Theme parks like Disney and Universal still attract U.S. visitors, keeping local numbers strong. But international guests usually spend more. This makes their absence a big loss for the city’s $92.5 billion tourism economy. Over 30% of local jobs depend on this industry.

Honolulu: Small Decline, Big Worries in Island Paradise

Honolulu saw a 1.8% decline in total visitors in June 2025. Canadian and Japanese travellers dropped by over 12%. This is serious for a state where tourism is 21% of the economy.
Even though visitor spending went up slightly, experts warn the trend is worrying. Fewer visitors means fewer tours, fewer restaurant bookings, and less support for small businesses. Recovery is now pushed back to 2027.

Trump’s Tariffs and Policies Slash NYC Tourism: Businesses Face $4B Loss

Trump’s tariffs and tough immigration policies are crushing New York City’s tourism industry. International visitors are avoiding the city, causing a projected $4 billion loss in 2025. This article explores the devastating impact on businesses and what it means for NYC’s economy.

Why Tourism Matters to NYC

New York City thrives on tourism. It’s the top U.S. destination for travelers. In 2024, the city welcomed 65 million visitors. International tourists, though only 20% of visitors, account for half of all tourism spending. They stay longer and spend more. A drop in these visitors hits hard. Local businesses, from hotels to tour guides, rely on this revenue. The $4 billion loss threatens jobs and economic stability. Tourism supports over 300,000 jobs in NYC. Without it, restaurants, shops, and attractions struggle. The ripple effect could weaken the city’s economy further.

Trump’s Tariffs Spark Global Backlash

President Trump’s tariffs are driving tourists away. A 35% tariff on Canadian goods has angered Canada, a key source of visitors. Canadian tourists, who spent $20.5 billion in the U.S. last year, are boycotting NYC. Bookings from Canada for summer 2025 are down 30%. European countries like France and Germany also face tariffs. This fuels anti-U.S. sentiment. Travelers fear strict border policies and detentions. For example, two German tourists were detained for weeks despite valid visas. Such incidents deter visitors, hurting NYC’s appeal as a welcoming destination.

Immigration Policies Scare Visitors

Trump’s aggressive immigration crackdown is another blow. A $170 billion deportation program has raised fears among travelers. Stories of detained tourists spread fast. A Canadian woman, Cheryl, canceled her $10,000 Iowa trip, citing safety concerns. Europeans worry about border harassment. The U.S. saw an 11.6% drop in foreign visitors in March 2025. Canada, Mexico, and Western Europe led the decline. Negative media coverage amplifies these fears. NYC’s tourism agency reports a 17% drop in expected international visitors. This loss of trust could take years to rebuild.

Local Businesses Feel the Pain

Small businesses are suffering the most. Matt Levy’s Spread Love Tours in Queens is a prime example. His company earned $35,000 yearly from Canadian school groups. Now, he expects just $5,000 in 2025 and nothing in 2026. Hotels report a 20% drop in bookings. The Empire State Building saw a 4.6% decline in visitors. Bus tour companies like TopView Sightseeing report 25% fewer customers. These businesses face tough choices: cut staff, delay investments, or close. The city’s mid- and lower-scale hotels are hit hardest, while luxury hotels fare better.

Economic Ripple Effects

The tourism drop hurts more than just businesses. It impacts jobs and tax revenue. NYC’s tourism agency predicts 64.1 million visitors in 2025, down from 67.6 million. This 3.5 million visitor drop translates to billions in lost revenue. International tourists spend about $23 billion annually. A 25% drop could mean $6 billion less in direct spending. Multiplier effects could add another $3 billion in losses. City taxes from sales and hotel stays will shrink. Unemployment may rise if businesses cut jobs. NYC’s economy could face a mild recession by late 2025.

What Experts Are Saying

Experts warn of worsening conditions. Claudia Green, a tourism professor at Pace University, says anti-U.S. sentiment is keeping visitors away. The World Travel and Tourism Council predicts a $12.5 billion national tourism loss. Adam Sacks of Tourism Economics calls Trump’s policies “unforced errors.” He expects a 20% drop in Canadian visitors and a 5.8% decline from Western Europe. The strong U.S. dollar also makes travel costlier for foreigners. Without policy changes, recovery could take until 2030. NYC’s tourism agency is fighting back with a “With Love + Liberty” campaign.

Can NYC Recover?

Recovery looks challenging but not impossible. NYC’s tourism agency is marketing heavily abroad. They aim to restore confidence in the city’s safety and appeal. Some attractions, like the Metropolitan Museum of Art, report a 5% attendance rise, driven by local visitors. The Tenement Museum saw a 6% increase from school groups. However, broader recovery depends on policy shifts. Easing tariffs or immigration rules could help. Governor Kathy Hochul launched a tariff resource guide to support businesses. Without action, the city risks prolonged economic damage.

The Bigger Picture

The U.S. tourism industry is struggling, not just NYC. The World Travel and Tourism Council says the U.S. is the only country expecting a tourism revenue drop in 2025. Global travel is booming, but America lags behind. Mexico expects a $281 billion tourism boost. Canada and Europe are choosing other destinations. Major events like the 2026 FIFA World Cup may suffer. The 2028 Los Angeles Olympics could face lower attendance. Trump’s policies, including tariffs and rhetoric, are reshaping global travel patterns. NYC must adapt to stay competitive.

What’s Next for NYC Tourism?

NYC faces a tough road ahead. Businesses need immediate support. Lowering hotel occupancy taxes could help, says Vijay Dandapani of the Hotel Association. City leaders are urging patience. They’re collecting data on tariff impacts to create solutions. By October 2025, a statewide tariff impact report will guide recovery efforts. Meanwhile, travelers need reassurance. Clear border policies and fewer detentions could rebuild trust. NYC’s charm—its diversity, culture, and energy—remains strong. With smart strategies, the city can bounce back as a top global destination.
Trump’s tariffs and immigration policies are devastating NYC’s tourism industry. A projected $4 billion loss threatens businesses and jobs. Canadian and European visitors are staying away, scared by tariffs and border fears. Small businesses like Spread Love Tours are collapsing. Recovery requires policy changes and aggressive marketing. NYC’s economy hangs in the balance. The city must act fast to restore its global appeal and protect its tourism-driven jobs.

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Tags: international visitor drop, Las Vegas travel slump, New York City tourism, travel industry crisis, US tourism decline

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