Published on December 11, 2025
By: Tuhin Sarkar
In 2025, Las Vegas unites Miami, New York City, Orlando, San Francisco, and Los Angeles as some of the most iconic US cities facing an unexpected tourism slump, thus hammering American travel industry economy. These once-bustling destinations, known for their high visitor numbers, are struggling to recover from declining international arrivals, higher travel costs, and shifting visitor preferences.
However, travel industry stalwart, Anup Kumar Keshan, Founder, CEO and Editor-in-Chief remain hopeful that the US tourism sector can bounce back in 2026 with Brand USA new tourism campaign, “America-the Beautiful. With the right strategies and innovations, these cities can reignite their global appeal. Las Vegas, alongside Miami, New York City, Orlando, San Francisco, and Los Angeles, can recover by diversifying their offerings, attracting domestic visitors, and investing in new attractions. 2026 could be the year these cities reclaim their status as top travel destinations.

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Keep reading to find out how the tourism sector plans to rebound and why these US cities might shine again soon.

US Cities are Experiencing a Major Tourism Slump in 2025 — Is Your Favourite Destination on the List?

In 2025, several major U.S. cities are facing an unexpected tourism slump that is shaking the foundations of their hospitality industries. Las Vegas, New York City, Miami, and Orlando, long-time favourites for both international and domestic visitors, are seeing significant declines in international arrivals, hotel occupancy, and overall visitor numbers. These cities, which thrive on high foot traffic and packed events, are struggling to cope with the aftermath of global economic pressures, shifting travel patterns, and evolving visitor expectations. Let’s dive into the cities that are grappling with these challenges and explore why this could mean a major shift in your holiday plans this year.

Las Vegas Struggles with Lower International Arrivals — The City That Never Sleeps Faces Decline

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Las Vegas, once the epitome of 24/7 entertainment and tourism, is facing an unprecedented drop in visitor numbers in 2025. International air arrivals have fallen by nearly 9.8%, and hotel occupancy rates have slumped by 12% in key periods. The allure of Las Vegas, famous for its luxury resorts, grand casinos, and star-studded shows, seems to have lost some of its shine. Global events such as economic instability, a stronger U.S. dollar, and a shift in international tourism patterns are driving this decline. Visitors from countries like Canada and Europe, who were once frequent tourists, are staying away in greater numbers.
Why Las Vegas is at Risk:
Las Vegas’ reliance on international visitors is now showing cracks. High resort fees, increasing travel costs, and a lack of new, game-changing attractions are keeping potential tourists at bay. Las Vegas tourism is heavily impacted by international leisure travellers, and these statistics spell trouble for the city’s future tourism industry. The city must rethink its appeal to bring visitors back.

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Takeaway: Las Vegas must innovate fast, offering something fresh to rekindle international and domestic interest before it becomes a ghost town for tourists.

Miami Fails to Attract International Visitors — A Shocking Decline in Tourism for Florida’s Iconic City

In sunny Miami, tourism has taken a dive that no one saw coming. With a 4.5% decline in international arrivals in 2025, Miami’s beaches, once a staple of global tourism, are not drawing the crowds they used to. While the city’s luxury resorts and trendy nightlife remain appealing, global factors like political instability, an increase in travel restrictions, and a downturn in Canadian and European visitors are all to blame. Miami is feeling the brunt of this slump as it depends heavily on international travellers to fill its hotels, restaurants, and cultural events.
What’s Behind Miami’s Decline:
The constant rise in travel expenses and negative perceptions of U.S. entry policies have deterred travellers. On top of that, the city’s once-thriving cruise industry has also taken a hit, as fewer international visitors are booking cruises from Miami’s bustling port. A shift toward domestic travel has softened the blow, but it’s not enough to replace the large number of international visitors Miami once hosted annually.
Takeaway: Without reinvigorating its international appeal, Miami could lose its crown as the ultimate beach destination in the U.S., which would be a huge blow to Florida’s tourism economy.

New York City Faces Tourism Decline — What’s Happening to the Big Apple?

New York City, the tourism capital of the world, is facing an alarming downturn in visitor numbers in 2025. Hotel occupancy has dropped by 3.8%, and international tourist footfall has significantly decreased. The city’s charm, which once attracted millions of visitors with its world-class attractions, Broadway shows, and iconic landmarks, now faces the reality of a changing travel landscape. Political tensions, post-pandemic travel hesitation, and soaring accommodation prices are key factors in this unsettling trend.
Challenges for NYC in 2025:
For years, New York was synonymous with bustling crowds and vibrant streets. However, the city is struggling with a shift in international travel trends. Higher costs of living, unreasonably high hotel fees, and the city’s ongoing struggles with crime rates have become deterrents. Tourists are now looking for more affordable, less crowded alternatives in places like Chicago and Los Angeles, leaving NYC behind.
Takeaway: New York needs to refresh its global image and bring back the magic that made it the world’s most popular tourist destination. If it doesn’t, it risks losing its crown as the ultimate U.S. tourism hub.

Orlando Faces a Dip in Theme Park Visitors — Could the Magic Be Over?

Once the undisputed theme park capital of the world, Orlando is now grappling with a drop in international arrivals in 2025. 3.8% fewer international tourists visited Orlando, and local tourism authorities are expressing concern over the city’s dependency on theme parks. Orlando, home to Walt Disney World, Universal Studios, and other large attractions, traditionally drew families from around the world. However, rising ticket prices, crowded parks, and competition from new destinations are leading to lower visitor numbers.
The Struggles for Orlando’s Theme Parks:
Orlando’s theme parks have been facing higher operational costs, including rising staff wages and electricity prices, leading to steep hikes in ticket costs. Families seeking affordable vacations are now turning to less expensive or more innovative options elsewhere, while international tourists are hesitant to spend money on costly park admissions.
Takeaway: Orlando needs to innovate and offer more than just theme parks to remain the go-to family destination. Failing to diversify could put a huge dent in the city’s tourism economy.

San Francisco and Los Angeles: U.S. West Coast Hit by Tourism Downturn

While cities like Las Vegas and Miami have had their struggles, the West Coast is no stranger to the tourism slump either. Both San Francisco and Los Angeles have seen hotel occupancy drop by more than 5% in 2025. The international market, once a huge source of visitors, has significantly slowed, particularly from Asia and Europe. In San Francisco, the decline is linked to rising travel costs, public safety concerns, and higher hotel prices, while in Los Angeles, the tourism industry is struggling with an influx of domestic tourists who are not compensating for the lost international demand.
Key Issues in West Coast Cities:
Both cities depend heavily on international travel and long-haul visitors. The uncertainty brought by the global economy, combined with domestic pressures, has dampened the appeal of the region. Los Angeles, traditionally a popular destination for international tourists seeking the glitz and glamour of Hollywood, has seen a marked decline in overseas bookings.
Takeaway: For these cities to regain their position, they need to address both the issues of cost and perception to bring back their global reputation and tourism economy.

The Impact of the Tourism Slump on U.S. Economy and Local Businesses

The decline in tourism in these cities has far-reaching consequences. Local businesses, particularly in the hospitality and retail sectors, are feeling the squeeze. Hotels are struggling to fill rooms, restaurants are seeing fewer international diners, and iconic tourist attractions are reporting lower foot traffic. As international arrivals fall, the overall economic impact is becoming evident — fewer tourists mean lower tax revenues, less spending, and slower recovery from past crises.
How the U.S. is Responding:
To address the decline in international visitors, several U.S. cities are pivoting toward boosting domestic tourism, launching campaigns to attract local visitors. In addition, the federal government is working with state and local authorities to ensure tourism remains a significant driver of economic recovery. However, without a full rebound in international tourism, the U.S. may not be able to regain its tourism crown anytime soon.

Las Vegas: The Entertainment Capital Reimagined

Las Vegas, once primarily known for its world-class casinos and lavish hotels, is evolving into a multi-dimensional playground for visitors seeking more than just the thrill of the slot machines. As the city enters 2026, the iconic Strip is gearing up for a massive transformation, with new live entertainment parks, immersive amusement areas, luxury hotels, and cutting-edge attractions that promise to make this year the most exciting one yet for tourists. With over 40 million visitors expected in 2026, Las Vegas is not just bouncing back; it’s reinventing itself as a premier destination for a broader range of experiences. Here’s your ultimate guide to the new Las Vegas, packed with insider information, expert recommendations, and must-visit spots.

The New Las Vegas Hotel Experience: Luxury Like Never Before

Las Vegas has always been synonymous with extravagant hotels, and 2026 promises even more opulence for luxury seekers. The city is gearing up to open The Vanderpump Hotel, a high-end property set to redefine the Las Vegas luxury experience. Located on the former site of a major Strip property, this hotel will combine extravagant design with world-class service and is expected to offer an entirely new type of accommodation for visitors seeking the ultimate in comfort and style. The Vanderpump Hotel is just one of many luxury hotels popping up in the city as part of a broader strategy to offer more diversified tourism options, catering to affluent travellers who want more than just a room and a view.
As the city continues to expand its hotel infrastructure, expect newly designed resorts that push the boundaries of luxury. These hotels aim to blend top-tier service with immersive guest experiences, making it not just about staying in a comfortable room, but about living a dream. With incredible amenities, world-renowned spas, and bespoke services, Las Vegas in 2026 is offering more than a place to stay – it’s an experience in itself.

Immersive Live Entertainment and Amusement Parks: Las Vegas’ Thrill Factor

One of the most exciting developments for 2026 is the expansion of Las Vegas’ live entertainment and amusement offerings. Area15, a 300,000-square-foot entertainment complex, is set to grow into an even bigger immersive destination, combining retail, dining, and entertainment. The Vegas Immersive District, part of this expansion, will feature new amusement areas, live entertainment venues, and even residential spaces, transforming the way visitors experience the city. Whether you’re looking to shop, dine, or take in a jaw-dropping live show, Area15 is quickly becoming one of the most dynamic places on the Strip.
But that’s not all. The Universal Horror Unleashed attraction, based on popular horror franchises, opened in August 2025 and will continue to run in 2026, offering an immersive experience like no other. This permanent, year-round attraction is part of Las Vegas’ strategy to diversify beyond its traditional offerings of gambling and to provide something for everyone, from thrill-seekers to families.
Furthermore, Las Vegas is introducing The Sphere, a massive venue set to host cutting-edge immersive shows, live concerts, and events that are taking entertainment to the next level. With artists like No Doubt signing on for residencies, The Sphere is expected to become the epicenter of entertainment in the city. It’s clear that Las Vegas is no longer just the “city of sin”; it’s the entertainment capital of the future.

The Las Vegas Strip: A Modern Day Playground for All

While the Las Vegas Strip remains the beating heart of the city, expect to see it evolve into a more immersive, all-encompassing destination in 2026. The city has always been known for its grand casinos and luxury resorts, but new developments are introducing a wider variety of experiences that go beyond gaming. The addition of large-scale attractions and immersive amusement areas signals a shift toward family-friendly and themed experiences that appeal to a broader demographic.
For instance, The Las Vegas Resort and Entertainment District, which includes the long-awaited Vanderpump Hotel, will bring guests a more diverse set of activities, from fine dining to exhilarating amusement rides. This district will incorporate new, large-scale attractions that are sure to be a hit with families and international tourists. With its expanded focus, the district is set to transform the Strip into a truly dynamic space where visitors can indulge in entertainment, shopping, food, and relaxation, all within walking distance.
The Fremont Street Experience, another hotspot for tourists, will continue to be a hub of activity with its open-air mall, light shows, and live performances. Visitors looking for a more laid-back but still exciting atmosphere can enjoy street performers, boutique shops, and locally inspired attractions, all while soaking in the vibrant energy of Las Vegas’ downtown.

Las Vegas’ Evolution as a Luxury Destination: From Casinos to Spas

In addition to its revamped entertainment offerings, Las Vegas is becoming a premier destination for luxury getaways that go far beyond the traditional casino experience. The city has always been a beacon for those seeking indulgence, and in 2026, luxury in Las Vegas is going to the next level. Spas, wellness centres, and exclusive shopping experiences are some of the new elements that have been incorporated into luxury hotels and resorts across the Strip.
The Venetian Resort, for example, will continue to offer a refined experience with its gondola rides, upscale shopping at The Grand Canal Shoppes, and a selection of Michelin-starred restaurants. New wellness-focused hotels, such as the Boulder City Resort & Spa, will offer state-of-the-art fitness centres, spa treatments, and organic cuisine, perfect for those looking for a rejuvenating vacation while still being close to the action.
The influx of luxury hotels also brings with it top-tier restaurants from celebrity chefs, offering everything from fine dining to innovative fast-casual concepts. Las Vegas has long been known for its culinary scene, and with the expansion of high-end resorts and entertainment venues, the city is poised to further solidify its reputation as a global culinary capital.

The Future of Las Vegas in 2026: What to Expect

Looking ahead to 2026, it’s clear that Las Vegas is no longer just a destination for gamblers. The city’s expansion into immersive entertainment, live shows, new luxury accommodations, and amusement areas signifies a broader shift toward attracting a diverse range of tourists. Whether you’re an adrenaline junkie, a family looking for fun, or someone seeking a relaxing retreat, Las Vegas has something for everyone.
In addition to expanding its offerings, the city is also set to continue its legacy of hosting world-class events and conventions. The Las Vegas Convention Center is undergoing an expansion to accommodate even more events, attracting a global audience for conferences, trade shows, and industry-specific gatherings. As a result, business and leisure tourists alike will find something to love about Las Vegas in 2026.

Your Guide to the Best Experiences in Las Vegas

If you’re planning a trip to Las Vegas in 2026, here are some must-visit experiences that you can’t miss:

1. The Sphere – Don’t miss the immersive shows and incredible live music performances at this futuristic venue.
2. Area15 – A unique immersive experience combining art, entertainment, and shopping.
3. Universal Horror Unleashed – Get your scare on with this year-round horror-themed amusement attraction.
4. The Vanderpump Hotel – Indulge in world-class luxury with the opening of this new ultra-luxury property.
5. Fremont Street Experience – Enjoy the lively, open-air experience with incredible light shows and street performances.

Brand USA Unveils ‘America the Beautiful’ Campaign to Boost Global Tourism in 2026

Brand USA, the U.S. destination marketing organization, has launched the “America the Beautiful” campaign, marking its most ambitious global tourism initiative to date. This campaign is part of Brand USA’s strategic plan to increase inbound travel ahead of a pivotal year for the country — 2026, which will see milestones such as the FIFA World Cup, America’s 250th anniversary, and the Route 66 centennial. This forward-thinking campaign debuted during Brand USA Travel Week U.K. & Europe, an event connecting U.S. destinations with top international buyers and media.
The America the Beautiful campaign aims to highlight the U.S.’s rich diversity of experiences, focusing on the personal connections that travellers can make through the nation’s people, culture, and stories. The campaign emphasizes the variety of U.S. destinations — not only iconic landmarks but also hidden gems that offer nature-driven escapes, authentic family moments, and luxury travel. Through four powerful video spots, the campaign will engage audiences across the globe and inspire them to plan trips to the U.S. in 2026.
As international travel continues to drive significant economic impact, with $147 billion in travel and tourism exports in 2025, America the Beautiful is strategically designed to accelerate this momentum. Research across ten global markets shows strong emotional appeal for the campaign, with 72% of respondents expressing a positive response and 67% reporting an increased desire to visit the U.S. in the near future.
The tourism campaign also introduces AmericaTheBeautiful.com, an AI-powered hub that offers personalized recommendations, interactive maps, and itinerary-building tools to make planning trips easier than ever. This platform will provide tailored travel experiences to suit the diverse needs of visitors.
Brand USA’s Travel Week events are expanding globally, with Brand USA Travel Week India and Brand USA Travel Week South America scheduled for 2026, further promoting the U.S. as the ultimate international destination. For more details, visit TheBrandUSA.com or start planning your U.S. adventure on AmericaTheBeautiful.com.

The US Tourism Slump of 2025: What It Means for Your Next Holiday

The tourism slump across major U.S. cities in 2025 is a wake-up call. Iconic destinations like Las Vegas, Miami, New York, and Orlando are struggling to regain their former glory as international tourists turn to other destinations. Rising costs, political instability, and shifting travel patterns are major factors contributing to this decline. But with innovation and diversification, cities can recover and thrive again.
If you’re planning your next U.S. holiday, it’s crucial to consider these tourism trends. Some of your favourite cities may no longer be as bustling with visitors as they once were. Exploring off-the-beaten-path destinations could be your best bet to enjoy a less crowded, more affordable trip.
In conclusion, Las Vegas is facing significant challenges in its tourism sector in 2025. The city, which has long been the entertainment capital of the world, is experiencing a noticeable decline in visitor numbers, driven by factors such as international travel drops, rising costs, and changes in global travel behaviour. According to the Las Vegas Convention and Visitors Authority (LVCVA), international air arrivals have fallen by almost 9.8% in recent months, and hotel occupancy has seen a 12% decline in key periods (costar.com).
However, this setback is not permanent. Las Vegas is making bold moves to revitalize its tourism industry with major investments in new live entertainment venues, luxury hotels, and immersive amusement parks. The upcoming Vanderpump Hotel is set to open in 2026, bringing a fresh, luxurious experience to the city’s hospitality scene (thebrandusa.com). The Vegas Immersive District and Area15 are set to expand with new attractions and entertainment options, giving tourists an innovative and exciting reason to visit (lasvegasnevada.gov).
Furthermore, with Las Vegas Convention Center’s ongoing renovation (reviewjournal.com), and predictions of a visitor rebound in 2026 (cdcgaming.com), there is reason for optimism. As Las Vegas embraces new attractions, it’s well on its way to returning to its status as a global tourism powerhouse.

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Tags: **America the Beautiful, American cultural experiences, Brand USA campaign, family travel USA, Luxury Travel USA

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