Why Foreign Travelers Are Skipping the U.S. in 2025

Something is shifting in the world of travel, and this time, it’s not a matter of taste, trends, or tech. It’s hesitation. From travel agencies to hotel lobbies, tour buses to airport gates, the silence is noticeable. America, once a magnet for international tourists, is watching a concerning trend unfold: foreign travelers are pulling away.

According to a new study based on data collected from U.S.-based travel businesses, more than half have reported a direct decline in international business. The results paint a clear picture, America is losing its grip as a preferred global travel destination. The reasons are varied but interlinked, forming a complex web of economic fear, strained international relations, and shifts in global perception.

The survey, conducted over a two-week period from late March to early April 2025, focused on U.S. businesses that rely heavily on inbound tourism. Over 50% of those surveyed reported cancellations, booking declines, or a drop in visitation. About a quarter noted no immediate impact, while the rest were either unsure or not operating inbound travel services at the moment.

But dig deeper, and the numbers speak even louder. Nearly two-thirds of sellers across the travel ecosystem, hotels, destinations, restaurants, and attractions, are feeling the pinch. For many of them, canceled room nights have become the new norm. Motorcoach operators, destination marketers, and other travel facilitators echo the same concerns: business is slowing down, and the margins are shrinking.

The underlying causes are both economic and political. The top concern cited by survey respondents is the looming threat of recession, worsened by fluctuating consumer confidence. Global travelers are becoming more cautious with their money, and long-haul vacations, especially those to countries with unpredictable entry rules, are quickly sliding down the list.

Following closely behind is the issue of international relations. Diplomatic tensions and trade disputes between the U.S. and several major nations are affecting more than stock markets, they’re reshaping travel decisions. When travel feels uncertain or unwelcome, vacation plans turn into staycations. This effect is even more pronounced in group travel, which relies on predictability and safety assurances to function.

Some respondents also highlighted the role of federal policies and regulations in this downturn. While the details vary, one sentiment rings loud: mixed signals from national leadership, heightened border scrutiny, and the broader tone toward foreign nationals are contributing to a chilling effect. The feeling of being unwelcome, even if unintended, is driving potential travelers elsewhere.

A growing number of countries have issued soft travel advisories in recent months, urging their citizens to proceed with caution when planning trips to the U.S. Some cited concerns over border treatment and entry denials, while others pointed to broader political messaging that could make travelers feel vulnerable or targeted. In a hyper-connected digital world, these advisories travel fast, and so do the decisions to cancel.

The numbers suggest that the financial stakes are enormous. A projected 11% dip in foreign tourist spending in the U.S. this year alone could result in an $18 billion loss in revenue. That’s not just a blow to luxury resorts or national parks, it affects tour operators, family-run B&Bs, museums, restaurants, and even retail outlets that depend on the footfall of global visitors.

The decline is especially noticeable in U.S.-Canada travel, once considered one of the most seamless cross-border flows in the world. Canadian travelers, who historically make up one of the largest international demographics visiting the U.S., are increasingly deciding to stay home or go elsewhere. Tour cancellations, ticket refunds, and shuttered itineraries are now daily occurrences for many Canadian-based travel planners and their U.S. counterparts.

Operators and destination marketers across the U.S. are calling for a unified response. They believe it’s time for the industry to push back against the narrative and remind the world that America is still open for exploration, culture, and connection. The call to action is clear: advocate for friendlier policies, champion more welcoming messaging, and rebuild the bridges that have long made the U.S. a bucket-list destination.

But this effort will require more than PR campaigns. It demands consistent policies, simplified entry processes, and a genuine commitment to cultural openness. The travel industry is resilient, but resilience has its limits. Without immediate change, the economic damage will compound, and the country risks losing not just money, but also its global standing as a tourism powerhouse.

If this trend continues unchecked, it won’t just affect traditional tourism hubs like New York or Los Angeles. Secondary cities, rural communities, and small businesses that rely on seasonal international guests could suffer irreversible losses. The ripple effect could stretch into hospitality jobs, transportation infrastructure, and even local economies built around travel traffic.

The road to recovery isn’t impossible, it just needs to start now. There’s still time to turn things around, but it will require collaboration between industry leaders and policymakers. More than ever, the U.S. must show the world that it still values connection, curiosity, and the unique power of global travel.

Level Up Insight:

When travel slows, economies stutter. The latest data is a wake-up call, not just for the tourism sector, but for policymakers and local leaders. International visitors don’t just take photos; they leave behind billions in spending, culture-sharing, and global goodwill. America’s tourism revival won’t begin at the airport gate, it’ll start with perception, policy, and purpose.