New York, Nevada, California, and Other States Feel the Pinch as Global Visitors Look Elsewhere
June 4, 2025 — A growing list of U.S. states — including New York, Nevada, California, Florida, and Michigan — are experiencing a sharp decline in tourism as international arrivals dwindle and inflation continues to erode the appeal of the American vacation. Once considered a value destination for global travelers, the U.S. is increasingly seen as expensive, complicated, and, for many, not worth the price tag.
As the cost of airfare, hotels, meals, and excursions rises across the board, budget-conscious travelers are opting for more affordable and accessible destinations in Europe, Asia, and the Caribbean. The result is a sobering midyear snapshot of America’s tourism sector: thinner crowds, falling visitor numbers, and billions in potential economic losses.
Tourists Are Pulling Back — and It’s Starting to Show
The downturn in 2025 isn’t just a seasonal dip — it’s a broader, more structural shift. With the U.S. inflation rate climbing to 2.3% as of April, the rising cost of nearly everything is pushing visitors to reevaluate their plans. For many, especially those coming from countries with weaker currencies, the American dream vacation has become a luxury.
And the effects are widespread.
New York: Fewer Visitors, Bigger Economic Hole
New York City, long a magnet for international travelers, is feeling the slowdown in stark terms. Tourism officials have cut their 2025 forecast by 3.5 million visitors, lowering projections to 64.1 million total arrivals. The sharpest drop is among international tourists, with 2.5 million fewer expected than in 2024.
That decline could cost the city as much as $4 billion in lost spending — a heavy blow given that foreign visitors typically stay longer and spend more than domestic ones.
While Broadway shows are performing well and hotel occupancy in April nearly reached pre-pandemic levels, the absence of high-spending global tourists is creating a noticeable void in the city’s economic landscape.
Las Vegas: The Cost of Fun Is Rising
In Las Vegas, the visitor downturn is starting to bite. Tourism dropped 7.8% in March and 5.1% in April year-over-year, even as average room rates on the Strip rose to $203 per night. Despite higher prices, hotel occupancy fell slightly to 84.5%, a signal that travelers are beginning to resist the rising cost of what was once marketed as an affordable getaway.
Even day-to-day expenses are drawing complaints — with one British tourist noting a $9 coffee as an example of sticker shock. Ongoing construction, road closures, and congestion from major events are also dampening the experience for those who do show up.
Tour companies say demand for excursions to nearby destinations like the Grand Canyon and Death Valley is softening as costs rise, further straining local operators.
California: A Rare Decline in Tourism
In California, where the travel industry has typically remained resilient, 2025 is shaping up to be a year of retreat. Officials are bracing for a 1% drop in overall visitors, but the real concern lies with international travel, where a 9.2% decline is expected.
Core markets such as Canada, the UK, and Mexico are sending fewer visitors — citing higher prices, complex entry requirements, and long visa wait times. Even marquee destinations like San Francisco and Los Angeles are seeing fewer foreign tourists than expected, raising alarms across the state’s tourism sector.
Florida: Losing Ground With Canadian Visitors
Florida, a top draw for Canadian snowbirds, is also feeling the pullback. Canadian arrivals fell 3.4% in the first quarter, and total overseas travel is down modestly. While domestic tourism — especially from families and retirees — remains stable, international visitors to Miami, Orlando, and other hotspots are increasingly looking south to the Caribbean, where lower prices and simpler travel protocols offer a compelling alternative.
Michigan: A Border State Feeling the Slowdown
In Michigan, the downturn is quieter but no less impactful. The state relies heavily on weekend tourism from nearby Canadian provinces, and in 2025, that flow has slowed. With stricter border rules, higher gas prices, and unfavorable exchange rates, border towns like Sault Ste. Marie and communities across the Upper Peninsula are seeing shorter visits and lighter spending.
Local businesses report reduced traffic and growing anxiety as the summer season — critical to their survival — draws near.
Inflation Adds to the Pressure
The broader economic context can’t be ignored. With inflation at 2.3% annually and consumer prices rising 0.2% month-over-month, the cost of U.S. travel is climbing at a steady pace. From rental cars to restaurant meals, travelers are feeling the pinch — and many are adjusting their plans accordingly.
For international visitors, the rising dollar and weakening home currencies are compounding the issue, making the U.S. one of the more expensive destinations in 2025.
Can States Turn It Around?
Tourism boards are looking to upcoming events and domestic travel trends to salvage the season.
- New York is counting on cultural attractions and Broadway to draw Americans.
- Las Vegas is betting big on mega-concerts, including Beyoncé’s tour and Sphere residencies.
- California is leaning into eco-tourism, wine country, and in-state travel.
- Florida continues to appeal to families and retirees with sunshine and familiar experiences.
But the elephant in the room remains: without a rebound in international travel, most states won’t see full recovery.
A Growing Message From Global Travelers
The global travel market is sending a clear signal — for many, the U.S. no longer offers the value or ease of experience it once did. Until prices stabilize, entry becomes simpler, and sentiment improves, international tourists may continue to steer clear, choosing other destinations that feel more welcoming, affordable, or accessible.
Unless conditions shift, America’s most iconic travel spots could face a quieter, leaner summer than they’ve seen in years — with fewer flights landing, hotel rooms staying empty, and dollars left unspent.
Planes on busy airport runway Picture by Freerange
