The U.S. has long been an aspirational destination for travelers around the world. Even people who’ve never left their home country seem to know about Times Square, the Yankees, and the American road trip. From national parks and iconic cities to world-class attractions, the U.S. has traditionally held a firm spot atop many international bucket lists.
But that trend might be shifting—and fast.
While there was an initial fear that a shift in the U.S.’s approach to dealing with the rest of the world might hurt inbound tourism, the data is now starting to confirm it. According to a recent report from CNBC International, there’s been a 3.4% drop in international arrivals to the United States. That might not sound dramatic on its own, but when compared to the 15% year-over-year increase from the previous year, the decline becomes much more alarming.
What’s Behind the Drop?
In interviews with travelers across Southeast Asia, the concerns are clear—and they’re not just about money. Safety, racism, and political instability were repeatedly cited as reasons travelers are steering clear of the U.S. Instead, would-be tourists are choosing destinations in Europe, Australia, New Zealand, and other parts of Asia, where they feel more welcome and safer.
These are deeply personal concerns that go beyond fluctuating airfare or currency exchange rates. Perception matters—and right now, the perception of the U.S. isn’t helping.
It Could Be Even Worse Than the Numbers Show
The reported 3.4% decline doesn’t yet include data from Mexico or Canada, two of the U.S.’s biggest tourism sources. And early indicators suggest those numbers aren’t going to help:
- Car crossings from Canada into the U.S. are down 33% year over year
- Air Canada has cut several U.S. routes due to diminished demand, as Canadians opt to vacation within their own country or head to Europe instead.
And the Government Response? Add a Fee
If you thought this drop might spark concern from U.S. officials, think again.
Instead of working to boost tourism or address travelers’ concerns, the U.S. government just announced a new $250 “Visa Integrity Fee” for visa applicants, on top of existing application fees. There’s no timeline for when this will take effect, and no clarity on how it will be implemented. But the message it sends is clear.
Read more about the new visa fee here.
Final Thoughts
We’ve seen global travel patterns shift before—due to economic downturns, geopolitical events, and even social movements. But this downturn in travel to the U.S. feels different. The reasons are more complex, and the fallout could stretch far beyond airlines and hotels.
And if the government’s response is to tack on another fee without addressing the real concerns keeping visitors away, we might not have seen the bottom yet.
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6 comments
When a national government actively embraces xenophobia as a policy and reinforces that with higher fees, people are going to recognize that choosing another country that actually welcomes them might be a better choice. Unless our government makes an incredibly unlikely reversal and decides that we like rather than loathe foreigners it’s just going to get worse for at least a few years.
And it’s not just non-Caucasians hesitant to visit the U.S. Foreigners of all stripes are hesitant to support a country by visiting that country when its government expresses hostility towards so many other countries and tries to bully other countries. Canadians, of course, have obvious reasons not to visit or support the U.S. now.
Can’t wait for us to get hit with reciprocal $250 fees from other countries. Like $250 will deter someone who intends to overstay? I know theoretically the money would be returned, but $1000 upfront for a family of 4 to visit the grand canyon is going to make a lot of people think twice.
My initial read is that it only applies to visitors who need visas? So maybe EU and others are spared?
Logic seems doomed in the face of xenophobic theater.
As a country, we are screwed.
Instead of falling victim to media talking points, it might be worth investigating other sources on this, like the National Travel and Tourism Office (NTTO), which forecasts an increase in international visitor arrivals to 77.1 million in 2025, a 6.5% rise from 2024. It seems that through May, the YTD numbers might be down slightly, but that doesn’t yet include the peak Summer months for some visitors.
I would suspect that travel numbers are down in some locations like NYC, LA, and Chicago due to the state of high crime and other instability in those cities, but even that is just a guess. I would also guess that many tourists may be staying away from expensive sites like Disney due to rising costs.
In several articles on the subject seen recently, one of the reasons for the absence of Canadians is underestimated. It is not the value of the Cdn dollar – low for a long time, no impact until February – or fears related to the border. Everywhere we go, we read and hear the frustration of Canadians at being hammered at a repugnant rhetoric that attacks our independence and sovereignty. For the majority of Canadians, it is unacceptable to encourage the economy of a country whose leadership is only interested in getting its hands on our natural resources cheaply. Several polls conducted in the country over the past few weeks show that this movement will be in the landscape for several months, if not years. The damage is irreparable for the next four years