California Joins New York, Florida, Texas, Nevada, Illinois, Massachusetts, and Washington DC as US Tourism Slumps Following Canada and Europe’s Travel Cutback: What You Need to Know – Travel And Tour World

As international travel to the US falters in 2025, states including California, New York, Florida, Texas, Nevada, Illinois, Massachusetts, and Washington DC are facing a sharp tourism slump driven by a steep pullback from Canada and Europe. Diplomatic tensions, newly imposed tariffs, and shifting immigration policies have triggered widespread cancellations, spending declines, and visitor drop-offs—undermining what had been a steady post-pandemic recovery. With hotel bookings down, cross-border travel collapsing, and economic losses mounting, tourism officials across the country are warning of long-term damage unless international sentiment toward the U.S. rebounds.

California Feels the Weight of Global Retraction

California, which has long led the U.S. in tourism revenue and international branding, now projects a decline in total visitation for the first time since the pandemic. Visit California’s latest forecast indicates a 0.7% drop in trips to the Golden State in 2025, bringing the annual total to an estimated two hundred sixty eight million trips. This reversal follows a record-setting 2024, when visitor spending reached over one hundred fifty three billion USD, and 50 of 58 counties saw tourism growth.

The decline is not just numerical—it is qualitative. International visitors, who contributed over twenty six billion USD in 2024, are expected to retreat by over nine percent in 2025, largely due to Canada and Europe reducing travel to the U.S. The strong dollar, decreased airlift, and U.S. immigration rhetoric have all played a role. Tourism Economics warns that these forecasts do not account for a potential U.S. recession. If one occurs, the decline could be more pronounced.

Despite these setbacks, California remains resilient. The state allocates seventy nine percent of its tourism marketing budget to domestic travelers, and in-state visitors generated an additional twenty seven billion USD in 2024. Visit California encourages locals to vacation within the state to help mitigate international shortfalls.

New York’s International Magnetism Faces Resistance

New York City, one of the most iconic international destinations in the U.S., has slashed its 2025 tourism forecast by three million visitors. The city anticipates a significant seventeen percent drop in foreign tourists, with Canadian and European markets showing the sharpest declines. This retreat is tied closely to the political environment. Diplomatic tensions, trade policy instability, and the perception of an unwelcoming immigration stance have soured the appeal of visiting the U.S., especially among traditionally loyal travel markets.

Economically, the forecasted drop in international visits could cost New York four billion USD in tourism revenue. Attractions, theaters, museums, and luxury retail stores in Manhattan rely heavily on international foot traffic, particularly from Canada, the U.K., Germany, and France. These losses may not be easily compensated by domestic tourism, which remains steady but less lucrative on a per capita basis.

City officials and tourism boards are now recalibrating their strategies, emphasizing safety, cultural engagement, and diverse travel experiences to reposition New York amid growing skepticism abroad.

Florida Struggles to Recover Canadian Volume

Florida’s tourism sector is experiencing stagnation as Canadian and European tourists cut back on U.S. travel. Although early 2025 numbers showed a 0.5% year-on-year increase in Canadian air arrivals in January and February, overall visitation remains twenty percent below pre-pandemic benchmarks. The traditional influx of Canadian “snowbirds” during the winter months has thinned, and many border communities report softer bookings.

While domestic travel and attractions like Disney World and Miami beaches continue to attract U.S.-based tourists, the high-spending Canadian segment has not returned in full. Economic analysts warn that this gap may widen further if diplomatic relations remain tense or if border procedures tighten.

Florida’s tourism marketing arm, VISIT FLORIDA, has ramped up efforts to entice domestic travelers and is launching new campaigns in Latin America to offset North Atlantic losses.

Texas Faces Headwinds Despite Strong 2024

Texas concluded 2024 with historic tourism figures. The state welcomed sixty two million visitors, generated an economic impact of approx. two hundred billion USD, and supported over one million jobs in the tourism sector. However, the outlook for 2025 is clouded by warning signs. The first quarter of 2025 showed slowed growth in travel-related sectors, particularly in hotel occupancy and event bookings.

The Lone Star State remains a popular destination for business travel and cultural tourism, yet international arrivals have begun to taper off. Rising airfare, tariff tensions, and global caution about U.S. policies contribute to the downturn. The Texas Governor’s Office of Economic Development and Tourism has acknowledged these pressures and pledged renewed support for regional travel programs and small business tourism initiatives.

Nevada and Las Vegas Feel the Drop

Nevada’s economy is deeply entwined with its tourism sector, particularly in Las Vegas, which draws millions annually for entertainment, gambling, and conventions. In Q1 2025, Las Vegas reported a approx. seven percent decline in visitation. February’s data shows an even sharper twelve percent decrease, largely due to weaker international traffic and a soft comparison following 2024’s Super Bowl bump.

The city’s convention attendance fell by nearly twenty percent, and hotel bookings dipped as fewer Canadians and Europeans visited. Industry leaders fear reduced service levels on key international air routes unless demand rebounds in summer. Analysts note that the impact of lost Canadian visitors is magnified because they spend disproportionately in hospitality and gaming.

Las Vegas is now exploring expanded partnerships in Latin American markets and enhancing domestic marketing to maintain occupancy and visitor spending levels through 2025.

Illinois Sees Declining Event Tourism

Illinois, anchored by Chicago’s large-scale conference and convention economy, is encountering tourism turbulence as international business travel contracts. In 2023, the state welcomed one hundred twelve million visitors, generating forty seven billion USD in spending. But in 2025, state officials now report a nine percent decrease in international arrivals, with Canada and Europe leading the downturn.

Chicago’s hotel sector has been hit especially hard, recording some of the lowest occupancy rates among top convention cities in Q1 2025. Industry analysts attribute this decline to geopolitical tensions, travel costs, and reduced airlift from European hubs. The Chicago Department of Cultural Affairs and Special Events is pivoting to support local tourism and regional conferences as a stopgap.

Massachusetts Faces a Northern Exodus

Massachusetts has enjoyed a strong tourism recovery in recent years, particularly in Boston. In 2023, the state logged approx. twenty four billion USD in travel spending, with international spending growing eight percent to nearly approx. three billion USD. However, 2025 is seeing a reversal. Canadian travel to Boston is projected to drop over twenty percent, and European bookings are lagging significantly.

Tourism boards attribute the shift to political rhetoric, complicated visa processes, and Canada’s growing advisory sentiment against U.S. travel. Boston, long favored for educational tours, business events, and sports tourism, is now recalibrating its outreach to domestic travelers and exploring opportunities in Asian markets.

Washington DC Struggles with Image Overhaul

Washington DC, the political heart of the nation, is also grappling with a decline in international visitors. While official numbers are still emerging, early 2025 trends show shrinking interest from European and Canadian travelers. The drop is closely tied to global sentiment about U.S. immigration policy, border security, and public safety.

Tourism officials are working aggressively to reposition DC as a cultural and educational hub rather than a political flashpoint. Still, the downturn is impacting museums, tour operators, and hotels that rely heavily on global tour groups. Without diplomatic softening, the recovery of DC’s international segment may stall well into 2026.

Montana as the Ground Zero for Canadian Pullback

Montana’s tourism economy, particularly in the Flathead Valley and Kalispell, is facing a sudden and severe downturn due to Canada’s retreat. In January 2025, Canadian spending in Kalispell dropped 13%. By February, the drop deepened to thirty six percent, reversing a previously encouraging approx. eleven percent growth between 2023 and 2024.

Roosville, Montana’s key border crossing north of Eureka, saw border traffic crash in Q1 2025. While January showed an eleven percent increase in passenger vehicles, February declined approx. fifteen percent, followed by a twenty six percent collapse in March. Tourism leaders in the region have warned of a broader collapse unless tensions de-escalate.

Hotel Bookings and Cultural Fallout in Montana

Hotel bookings by Canadians are down seventy one percent across Montana, and the cancellations are extending beyond leisure travel. Canadian youth sports teams, once a staple of Flathead Valley’s offseason travel economy, have withdrawn from tournaments en masse. This not only drains revenue from local hotels and restaurants but undermines a tradition that fostered cross-border unity.

Montana’s deep tourism ties with Alberta have historically gone beyond economics. The Waterton-Glacier International Peace Park, established in 1932, represents a legacy of cooperation. Tourism officials describe the breakdown as emotionally devastating. Canadian visitors who once saw Montana as a second home now feel alienated.

Wider Impacts on Montana’s Travel Sector

Western Montana’s Glacier Country reports a twenty nine percent drop in international travel inquiries in 2025. This includes both Canadian and European markets. At the same time, federal conference cancellations driven by budget cuts are affecting event venues and hotels.

Despite this, Kalispell’s Glacier Park International Airport (GPIA) reported thirteen percent growth in passengers from January to March. Airport Director Rob Ratkowski credits the gains to domestic demand and a rising local population, but he warns that a flat summer season lies ahead. Without international recovery, airlines may cut seasonal service in the future.

US tourism is slumping in 2025 as California, New York, Florida, Texas, Nevada, Illinois, Massachusetts, and Washington DC report falling forecasts driven by Canada and Europe pulling back amid rising tariffs, strained diplomacy, and restrictive immigration policies.

National Consequences of the International Retreat

Montana’s losses mirror a growing national trend. According to the U.S. Travel Association, a ten percent decline in Canadian visitation could cost the U.S. economy over two billion USD and erase 14,000 jobs. In 2024 alone, Canadian visitors generated over twenty billion USD in U.S. travel-related spending and supported over 140,000 jobs.

From border towns to major metros, the U.S. tourism economy is reeling from a combination of political posturing, immigration concerns, and global uncertainty. The pullback from Canada and Europe reflects a broader disengagement with the U.S. as a travel destination—one that cannot be reversed overnight.