US Tourism Declines as Border Policies Impact Key States

Multiple U.S. states are reporting a significant downturn in tourism throughout 2025, a trend largely driven by changing travel policies and economic factors. States including California, New York, and Texas have seen fewer international visitors, with data pointing to stricter U.S. visa requirements and travel restrictions from Canada and Mexico as primary causes for the decline.

The drop in arrivals from these two neighboring countries, historically major sources of tourism, has created a ripple effect across the nation. The combination of new visa fees, suspended interview waiver programs, and a strong U.S. dollar is prompting many potential visitors to choose other international destinations, impacting local economies that depend on tourism revenue.

Widespread Decline Across Major Tourist Destinations

The downturn in tourism is not isolated to one region but is affecting states across the country. While some declines are minor, others represent a substantial shift in travel patterns. California, a perennial top destination, recorded 8.2 million tourists in August 2025, a 1.2% decrease from the previous year. For the first eight months of the year, the state saw a 1.11% drop in total visitors.

Other states have experienced more pronounced decreases. New York reported an 11.63% fall in visitors for August 2025, while North Dakota saw a sharp 31.02% year-over-year drop for the same month. This pattern is consistent across states with different attractions, from the urban centers of Texas to the natural landscapes of Minnesota and Washington.

Impact of Canadian and Mexican Travel Restrictions

A primary driver of the tourism slump is the sharp reduction in visitors from Canada and Mexico. These two countries are traditionally the largest sources of international tourists for the United States, and recent policy changes have made travel more difficult and expensive.

Challenges for Mexican Travelers

Travel from Mexico has seen a sustained downturn. In the first half of 2025, air travel from Mexico to the U.S. fell by 23%. This followed an 11.8% decline in the first quarter, marking seven straight months of decreasing numbers for both air and land travel. According to industry reports, new U.S. visa policies are a significant factor.

The introduction of a $250 Visa Integrity Fee and the suspension of the interview waiver program have added financial and logistical hurdles for many Mexican citizens. Combined with a strong U.S. dollar, these changes have led many to seek alternative vacation spots in Europe and Latin America where entry requirements are less stringent.

Canadian Visitors Opting for Other Destinations

Similarly, travel from Canada has fallen dramatically. In July 2025, the number of Canadians driving to the U.S. for road trips dropped by 37% compared to July 2024. Air travel from Canada also decreased by 26% year-over-year. This marks the seventh consecutive month of decline in both travel methods.

"The added costs and longer wait times for in-person interviews have made U.S. visits more expensive and less appealing, prompting many Canadians to reconsider their travel plans."

Interestingly, the trend is largely one-way. While fewer Canadians are coming to the U.S., air travel from the U.S. to Canada saw a slight increase of 0.7% in July, indicating that the barriers are specific to entry into the United States.

State-Level Data Reveals Economic Impact

The decline in tourism translates directly to economic consequences for states. Reduced visitor numbers affect hotels, restaurants, retail stores, and transportation services. The specific data from several key states illustrates the scale of the issue.

East Coast and Southern States

New York saw its year-to-date visitor count fall by 10.53% to 22.1 million. Despite this, iconic attractions continue to draw visitors, though in smaller numbers. Florida experienced an 8.8% decline, with visitor numbers dropping from 19.4 million in 2024 to 17.7 million in 2025. Virginia also reported a significant 8.63% drop in tourism.

Midwest and Western States

In the Midwest, Michigan faced a 16.2% drop in visitors, while Minnesota's year-to-date arrivals decreased by 2.51%. The situation was more severe in North Dakota, which recorded a 15.29% year-to-date decline. In the West, Colorado saw visits to popular ski destinations like Aspen and Breckenridge fall by over 40%. Nevada, home to Las Vegas, saw an 11.3% drop in visitation by June, with corresponding decreases in hotel occupancy rates.

Resilience in Texas

Despite a slight dip, Texas has shown relative resilience. The state welcomed 9.1 million visitors in August 2025, a minor decrease of 1.09% from the previous year. The year-to-date decline was 2.56%. The state's diverse cultural offerings and major events continue to attract a steady flow of domestic and international travelers.

The Path Forward for U.S. Tourism

The current trend has prompted calls for a reevaluation of U.S. travel policies. Experts suggest that reviving the tourism sector will require addressing the barriers that have emerged for international visitors, particularly those from neighboring countries.

Potential reforms include reconsidering the new visa fees and reinstating the interview waiver program for low-risk applicants. Such changes could make the U.S. a more accessible and appealing destination. Without adjustments, the country risks losing more of its market share to other nations with more welcoming travel policies.

Restoring the flow of international visitors is crucial for the thousands of businesses and local economies that rely on the travel industry. The coming months will be critical in determining whether the U.S. can reverse this downward trend and reaffirm its status as a top global destination.