Tuesday, June 3, 2025
New York and Nevada have joined California, Florida, Michigan, and several other US states in experiencing sharp tourism declines, as international arrivals continue to fall and inflation drives out budget-conscious travelers looking for value. With airfare, hotel rates, dining costs, and entry requirements all rising, many foreign tourists are skipping trips to the United States altogether — opting instead for destinations that feel more affordable and accessible. While marquee events and domestic travel still bring some life to cities like Las Vegas and New York, the loss of high-spending global visitors is leaving a noticeable void. And with the US inflation rate climbing to 2.3% in April 2025, the once-budget-friendly American vacation is fast becoming a luxury many can’t justify.
It’s not just a seasonal dip or a blip on the radar. In 2025, the slowdown feels deeper, driven by everything from rising prices to shifting global sentiment. As travelers reassess their plans, the financial ripple is hitting state tourism economies harder than expected.
Tourists Are Pulling Back — and It Shows
International visitors are especially scarce this year. Many are skipping U.S. trips altogether, opting instead for destinations that feel more affordable, less complicated, or just more welcoming right now.
At the center of this shift is one word: cost. From hotels to food to local experiences, traveling in the U.S. has gotten a lot more expensive — and tourists are feeling it.
New York Loses Big on High-Spending Visitors
Nowhere is the slowdown more visible than in New York City. Tourism officials there just slashed their forecast for the year by 3.5 million visitors. Instead of the 67.6 million they expected, they now project around 64.1 million will show up by the end of 2025.
But it’s not just about fewer people — it’s about who’s not coming. The sharpest decline is in international arrivals. New York expects 2.5 million fewer foreign visitors than last year, and that matters, because international travelers tend to stay longer, spend more, and make bigger economic contributions than domestic ones.
The city could lose up to $4 billion in tourist spending as a result.
Despite solid numbers on the domestic front — Broadway shows are thriving and hotel occupancy in April came close to pre-pandemic highs — the absence of big-spending foreign travelers is leaving a noticeable dent.
In Las Vegas, Fewer Tourists Are Rolling the Dice
Las Vegas is feeling the pressure too. The visitor count dropped by 7.8% in March and 5.1% in April compared to last year. Hotel rates keep climbing — the average price for a room on the Strip hit $203 in April — but room occupancy actually fell slightly to 84.5%, down from 85.5% in 2024.
For a city that built its brand on being a place where anyone could find a deal, rising prices are changing the equation. Tourists say it’s no longer a budget-friendly escape.
Even simple pleasures feel costly now. One British tourist said he paid nearly $9 for a coffee — more than double what he’s used to back home. Others are complaining about the traffic chaos from ongoing construction and constant road closures for big events, making it hard to get around even if they do show up.
Tour companies that operate excursions to nearby sites like the Grand Canyon and Death Valley say demand is soft. Their overhead costs — gas, insurance, permits — have gone up too, making it tough to lower prices or offer promotions.
California Sees a Rare Retreat
Over in California, the story is much the same. For the first time since the pandemic, the state is bracing for a year-over-year drop in tourism. Officials expect a 1% decrease in total visitors, but the real issue lies in international travel, where a 9.2% decline is looming.
Visitors from Canada, the UK, and Mexico — usually reliable markets for California — are visiting in smaller numbers. Some say they’re skipping it due to inflation, others point to longer visa wait times or a general sense that the U.S. has become harder to visit.
Major cities like San Francisco and Los Angeles still have plenty to offer, but fewer global travelers are choosing them this year — and that’s a big red flag for the state’s tourism industry.
Florida Feels the Impact From Its Northern Neighbors
Florida, a top pick for Canadians looking to escape the cold, is also reporting losses. In the first quarter of 2025, Canadian arrivals dropped 3.4%, and total overseas travel ticked down slightly.
Travel insiders say the reasons are familiar — expensive airfare, currency differences, and a less favorable political climate — especially when compared to Caribbean destinations, where many Canadians are heading instead.
Florida’s domestic tourism remains steady, boosted by family trips and retirees who are less impacted by exchange rates. But international tourism, especially in places like Miami and Orlando, is far from what it was just a couple of years ago.
Michigan Quietly Joins the List
While not as high-profile as Vegas or Manhattan, Michigan depends heavily on tourists from Canada — especially in border towns. And in 2025, that pipeline has slowed.
With stricter border entry rules, weaker currency rates, and the rising cost of gas, fewer Canadians are crossing over for weekend getaways. Small businesses in places like Sault Ste. Marie and the Upper Peninsula are reporting a slump in tourist activity and shorter average stays.
Inflation Adds to the Pressure
A key part of the story is inflation. The annual US inflation rate reached 2.3% for the 12 months ending in April 2025, according to Trading Economics. Month-over-month, consumer prices rose by 0.2%, driving up the cost of everything from coffee to car rentals.
For travelers — especially those coming from countries with weaker currencies — this inflation makes the U.S. feel like a luxury destination. That wasn’t always the case.
The next inflation update will arrive on June 11 at 8:30 a.m. ET, and it could either reinforce or shift the narrative for travelers trying to decide where to spend their money this summer.
What Happens Next?
Tourism boards across the country are keeping a close eye on the summer calendar. With big concerts, sporting events, and holiday weekends coming up, they’re hoping for a rebound — at least domestically.
New York is banking on Broadway and its cultural pull. Las Vegas is betting on mega-events like Beyoncé’s tour and Sphere residencies. California is pivoting toward eco-tourism and local adventures. But everyone agrees: they need international travelers to return in force if they want a full recovery.
At the moment, though, a growing number of global tourists are sending a clear message — the U.S. just isn’t worth the price tag right now.
And unless that changes soon, America’s most visited states may continue to see fewer flights landing, fewer hotel lights flickering on, and fewer dollars changing hands.
