Published on August 30, 2025
By: Rana Pratap
This plunging numbers issue combines Las Vegas with Seattle, Portland, Detroit, Houston, and Los Angeles, the latter two having experienced a sharp drop in US tourism over the last months. The mix of soaring travel prices, inflation, and a drop in international tourists is vastly impacting these economically vibrant US cities, and, in particular, their tourism sectors. This situation creates a further strain on the already economically distressed cities, with the exact nature of their inflation exhibiting a constant and volatile decline in the value of visitor arrivals.
The sustained drop in tourists that Las Vegas, Seattle, Portland, Detroit, and Houston are experiencing underscores a broader challenge that these cities grapple with bolstered by reduced travel demand and increased costs. Collectively, these metropolitan areas possess unique tourism assets that set them apart, but are straining from elevating travel expenses, inflation, and a drop in international travel. This collective challenge is forcing these cities to adapt.

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Changing travel patterns, reduced international arrivals, increased travel expenses, and shifting visitor preferences all contribute to this downturn. Attendant with these chronic visitor declines, cities need to rethink their tourism strategies to regain and sustain international and domestic tourism. Alleviating these recoverable pressures is a common challenge that could re-position these cities as prominent travel hubs in the US.

Las Vegas

Las Vegas received 3.09 million visitors in July, a 12% decline from the previous year. For a city built almost entirely on leisure, that is a considerable setback.

Hotel occupancy rates fell to 76.1%, a steep decline from more than 83% in July 2024. The average daily room rate fell to $154.76 and revenue per available room (RevPAR) dropped from $134.05 to $117.77, a steep decline of 12.1%.
Local analysts attribute the decline to a combination of spending correction and restrained spending. After years of record visitor numbers, travel demand is now normalizing. Inflation has reduced the disposable income available to travelers. Some are also avoiding Las Vegas because of Strip hotel rates that are widely deemed to be exorbitant.

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This problem extends beyond hotels. The consistent inflow of visitors is vital for casinos, entertainment venues, and shopping malls. The reduced influx of visitors has a far-reaching impact on the economy of Las Vegas.

Places to Visit

• The Las Vegas Strip: The heart of the city, lined with famous casinos, hotels, and entertainment venues. Don’t miss the iconic Bellagio Fountains, the Luxor Pyramid, and the Eiffel Tower replica at Paris Las Vegas.
• Red Rock Canyon National Conservation Area: A stunning natural escape just outside the city, offering hiking, rock climbing, and scenic drives.
• Fremont Street Experience: A historic part of the city offering classic neon lights, street performers, and a unique outdoor light show on the Viva Vision screen.
• The Venetian: A luxurious hotel and casino featuring indoor gondola rides along Venetian-style canals.
• Neon Museum: A museum dedicated to preserving iconic neon signs from Vegas’ past.

Things to Do

• Catch a show: Vegas is renowned for its variety of performances, from Cirque du Soleil to major concerts and comedy shows.
• Try your luck at the world-famous casinos: Test your skills at poker, blackjack, or the slot machines.
• Helicopter tour over the Strip: See the bright lights from above for an unforgettable experience.
• Eat at world-renowned restaurants: Vegas has a thriving culinary scene, with celebrity chefs like Gordon Ramsay and Wolfgang Puck offering their signature dishes.

Seattle

Seattle documented the most significant decline among large US cities, with the number of international visitors down 27% year over year. This diminishment is particularly concerning because Seattle heavily depends on the Alaskan cruise season, which tends to bring in thousands of visitors during the summer. Additionally, Seattle boasts its own music festivals and cultural points of interest which, alongside the cruises, are likely to suffer due to the decreased number of visitors.
The increase in travel costs is one of the factors contributing to this decline. Seattle has one of the most expensive airfare and accommodation options in the US. This is bad for tourism, particularly for international tourists because, in addition to expensive travel, they have to deal with slower visa processing times.
Supplementing the aforementioned issues, the recovery of international travel, especially from countries like Japan and South Korea, is taking longer. These regions have historically contributed a lot to the tourism in Seattle, but that is no longer the case. Furthermore, Portland, Vancouver, and other Pacific Northwest cities are competing with Seattle for visitors. These other cities are more cost effective and less congested than Seattle.

Places to Visit

• Space Needle: Seattle’s most iconic landmark offering breathtaking panoramic views of the city, the Puget Sound, and Mount Rainier.
• Pike Place Market: One of the oldest farmers’ markets in the U.S., famous for its fresh seafood, local produce, and the iconic fish throwing tradition.
• Chihuly Garden and Glass: An indoor/outdoor gallery showcasing the stunning glasswork of artist Dale Chihuly.
• Seattle Art Museum (SAM): A museum featuring diverse art collections, from Native American art to contemporary pieces.
• Museum of Pop Culture (MoPOP): A must-visit for fans of pop culture, music, and film. The museum includes exhibits on everything from sci-fi to indie music.

Things to Do

• Explore Discovery Park: Seattle’s largest green space, with walking trails, beaches, and stunning views of Puget Sound.
• Take a ferry ride: Ride one of the Washington State Ferries across Puget Sound for a scenic tour of the islands.
• Visit the Seattle Underground: Take a guided tour of the hidden underground passages that make up the old city of Seattle.
• Tour the Seattle Great Wheel: Located on Pier 57, the Great Wheel offers views of the waterfront and the Olympic Mountains.

Portland

Portland, Oregon experienced an 18.3% drop in international tourism for the year ending July 2025. Portland has long been a beloved tourism city for its food scene, craft beer culture, and its proximity to hiking and outdoors attractions such as the Columbia River Gorge and Mount Hood. However, hiking and outdoor attractions coupled with a rise in the cost of visiting the city has resulted in a decline of tourists.
Increased inflation has substantially driven the prices of dining and accommodations in Portland. As a result, tourists looking to visit Portland for its affordable prices and uniquely crafted adventures are now visiting other similar places. Furthermore, the sharp decline in tourism brought by Canadian visitors is an important factor in the forecasted decline Portland is witnessing.
Additionally, image-related challenges stemming from safety issues and homelessness affect some regions of Portland’s downtown. These issues, which the city is working to mitigate, have resulted in negative media coverage of Portland, leading to a decrease in visitors to the city. Consequently, this is especially worrying for the local economy which is reliant on tourism to sustain businesses and employment, as the projected 18.3% decline is steep.

Places to Visit

• Washington Park: A beautiful park home to Portland Japanese Garden, International Rose Test Garden, and the Oregon Zoo.
• Powell’s City of Books: The world’s largest independent bookstore, spanning an entire city block.
• Portland Art Museum: Features a diverse collection of art, including Native American and contemporary art.
• The Pearl District: A trendy neighborhood with art galleries, boutiques, and microbreweries.
• Voodoo Doughnut: Famous for its unique and indulgent doughnuts, a must-stop for visitors with a sweet tooth.

Things to Do

• Cycle along the Willamette River: Portland is one of the most bike-friendly cities in the U.S., and cycling along the river is a great way to explore.
• Eat at food trucks: Portland is known for its food truck scene, offering everything from Korean BBQ to vegan delicacies.
• Go brewery hopping: Portland has a thriving craft beer scene, with more than 70 breweries in the city.
• Take a hike: The city is surrounded by stunning natural scenery, perfect for hiking and exploring, especially in places like Forest Park.

Detroit

Increasingly in recent years, Detroit has been in a recovery state with efforts to market itself as a cultural center enticing tourists with its rich music history, sports franchises, and ongoing urban revitalization projects. Regardless of everything in place, tourism declined by 17% in 2025, which may inhibit the city’s recovery and pose additional challenges to its economic revitalization.
This decline, in turn, is attributed to the weakening regional travel market. High regional driving and inflationary pressures in the United States is causing many visitors. to the Detroit area, to opt for cheaper and more convenient alternatives. Given how much Detroit depends on regional tourism, the city is exposed to the brunt of changes in travel patterns.
In comparison with other major U.S. cities, the international tourism numbers for Detroit are low. Efforts to diversify the tourism provided are there, and yet, the city fails to pull in visitors from other countries. With the projected 17.3% decline, sustaining tourism has become more difficult, and businesses in the city are likely to go into trouble, as tourists and visitors have become a rare sight in the coming year.

Places to Visit

• Detroit Institute of Arts (DIA): Home to an extensive collection, including European masterpieces and African-American art.
• The Henry Ford Museum: A must-visit for car enthusiasts and history buffs, showcasing the evolution of American industry and innovation.
• Motown Museum: Celebrate the birthplace of the legendary Motown sound with exhibits and tours.
• Detroit Riverwalk: A scenic, revitalized area along the Detroit River offering parks, walking paths, and stunning views of Canada.
• Belle Isle Park: A beautiful island park offering beaches, walking trails, and the Belle Isle Aquarium.

Things to Do

• Catch a Detroit Tigers game: Detroit is home to one of Major League Baseball’s most historic teams, and Comerica Park is a must-visit for sports fans.
• Explore Detroit’s street art: The city is known for its murals, which can be found throughout neighborhoods like the Eastern Market District.
• Take a Detroit River cruise: See the city from the water and enjoy the views of both the Detroit skyline and Windsor, Canada.

Houston

Visitor numbers are projected to decline by 20% in Houston. The city has always depended on business tourism and conventions, particularly from the energy and aerospace sectors, but these industries are still recovering from the pandemic. Houston also faces a drop in tourism because of a decrease in international travel, particularly from Mexico and other Latin American countries.
Corporate events and trade shows have always been a vital component of Houston’s tourism; however, the rise in hybrid and remote work models has decreased the demand for in-person meetings. An international visitor segment from Latin America, once a strong source of tourism, is also declining due to unresponsive visa systems and unencouraging travel conditions.
Weaker business travel, combined with a drop in international visitors, are the key drivers behind the anticipated decline in tourism to Houston. The city has a challenge to diversify and innovate in tourism marketing strategies; however, the primary focus will have to be on regional tourism to offset the international and business tourism losses.

Places to Visit

• Space Center Houston: A must-see for anyone interested in space exploration, featuring exhibits on NASA’s space missions and a chance to tour the Johnson Space Center.
• Museum of Fine Arts: One of the largest museums in the country, with a diverse collection of art from around the world.
• Houston Zoo: A family-friendly destination with over 6,000 animals and a strong conservation focus.
• Discovery Green: A popular downtown park offering outdoor activities, a pond for paddleboats, and free outdoor events.
• The Galleria: A shopping mecca with over 26 million visitors annually, offering luxury shops, ice skating, and gourmet dining.

Things to Do

• Explore the Theater District: Houston boasts one of the country’s largest theater districts, with Broadway shows, symphonies, and ballets.
• Sample the diverse food scene: Houston’s food scene is a melting pot of cultures, offering everything from Tex-Mex to high-end international cuisine.
• Go to a live rodeo event: Houston hosts the Houston Livestock Show and Rodeo, the largest rodeo in the world.
• Take a day trip to Galveston: Just an hour away, this coastal city offers beautiful beaches, historic sites, and fresh seafood.

Los Angeles

Los Angeles, famous for Hollywood, its beaches, and its entertainment options, is projected to experience a 10.5% decrease in tourism in 2025. While LA is still one of the most recognizable places to visit in the world, the cost of living and the rising cost of hotels and dining is inflating the budget a tourist requires to visit the city.
Like the cost for dining and attractions, hotel prices in Los Angeles have skyrocketed as well. Visitors now find no reason to spend a night in places like Hollywood and Santa Monica, because the prices are supersan mansion level. With the strong US dollar, Los Angeles is now a pricier option for international visitors, more so for those coming from European and Asian countries. In the United States, Los Angeles is now a dream city for most International tourists which is wishfully impossible to reach in terms of budget.
Los Angeles tourism sector’s 10.5% decline is particularly alarming because it has for a long time been one of the key economic engines of the area. These declines, if left unchecked, are a major economic risk for Los Angeles, especially in the tourism-reliant economic sectors.

Top Attractions:

• The Hollywood Sign: One of the world’s most recognized landmarks, offering scenic views of Los Angeles.
• Universal Studios Hollywood: A massive film studio and theme park offering thrilling rides and attractions.
• The Getty Center: A cultural center housing an impressive art collection, gardens, and stunning architecture.
• Griffith Observatory: Offering views of the city and the iconic Hollywood Sign.
• Santa Monica Pier: A classic California experience with an amusement park, aquarium, and family-friendly restaurants.

Things to Do:

• Visit Venice Beach and enjoy its quirky shops, street performers, and beautiful coastline.
• Take a studio tour at Warner Bros. Studios or Paramount Studios for a behind-the-scenes look at movie-making.
• Explore Los Angeles County Museum of Art (LACMA), the largest art museum in the west.
• Spend the day shopping along Rodeo Drive or The Grove for luxury shopping experiences.

Why Are Visitors Staying Away?

The declines share common underlying reasons across all cities. The first is inflation. Families have increasingly less disposable income. Additionally, airfare, hotel, and dining costs have all surged.
The second is ageing demographics. Older travelers are visiting destinations less frequently, and a growing proportion of younger travelers opt for short, budget-friendly getaways or international destinations where their money has greater purchasing power.
The third is weaker international arrivals. Economic uncertainty coupled with a strong US dollar is dissuading foreign visitors. Cities such as Houston, Los Angeles, and Las Vegas rely heavily on international visitors, and the void created by their absence is stark.

The Ripple Effect on Local Economies

The decrease in tourism impacts more than just the hotels; local businesses suffer due to the decrease in customers. Stores have reduced sales. Restaurants have empty seats. Ride-share drivers have fewer rides. Revenue from taxes also declines, causing strain on public services.
For Las Vegas, tourism is the lifeblood that finances infrastructure, public services, and various entertainment outlets. For Seattle, cruise tourism sustains an entire cluster of businesses. In Detroit, tourism assists in alleviating an economy that still heavily relies on the auto industry. The absence of visitors is felt in a myriad of ways.

A Warning for the US Travel Industry

The July figures serve as a red flag for the entire US travel industry. It illustrates that fostering a stagnant assumption for growth in larger cities is misguided. Market shifts, demographic changes, and global demand fluctuations greatly impact them.
As travelers look for lower-priced options, smaller cities, national parks, secondary cities, beaches, and rural areas become easier to explore for budget-strapped families.
The struggle continues for larger cities as they try to devise a solution. Failing to employ the right pricing, marketing, or international engagement will cement a continued decline for the region.
In the first seven months of 2025, Las Vegas unites with Seattle, Portland, Detroit, Houston, and Los Angeles in facing a significant US tourism slump, as visitor numbers continue to plunge due to rising travel costs, inflation, and fewer international arrivals. These factors have collectively contributed to a sharp decline in tourism across these major U.S. cities.

Looking Forward

Houston, Los Angeles, and Portland, together with Seattle, Detroit, and Las Vegas, share a single concern. Each of these cities experienced a drop in visitors by double-digit percentages in July of 2025. The international visitor numbers are still lower, and the travel market is adjusting, indicating the reasons are quite straightforward.
In the near term, these urban tourism centers will depend on inflationary economies. Strong urban tourism recovery is possible in the near term if inflation eases and flight prices become more dependable. On the other hand, if the currently low demand continues, American cities will struggle with a long-term weak recovery.
Numbers concerning tourism are the primary concern, but research indicates it goes way beyond that. The fragile economies of the US depend on that the travel market reaches its optimal recovery in the shortest possible time, which is quite the concern in recent years. The numbers have shown that these declines have a direct effect on business, community, and the traveling industry.

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Tags: Las Vegdas, seattle, Tourism news, US

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