Canada and Key Nations Spark US Tourism Decline with Fewer Visitors Last Year

The tourism industry in the United States experienced a substantial downturn in 2025, driven by a decline in visitors from several key nations, including Canada, France, Germany, China, South Korea, and India. Rising travel costs and economic challenges are significant factors contributing to this downward trend.

Decline in Canadian Visitors

Canada remained the largest source of international visitors to the U.S. in 2025. However, tourist arrivals from Canada fell sharply to 13.47 million, a 22.1% decrease from 17.30 million. This decrease highlighted Canada’s critical role, representing 23.6% of total U.S. inbound tourism.

• The decline reflects factors such as higher inflation, currency fluctuations, and the rising cost of travel.
• Many Canadians chose shorter domestic trips instead of longer vacations in the U.S.

This shift in travel behavior led to significant losses in retail and hospitality sectors in the U.S., particularly in states close to the Canadian border.

Other Key Nations Contributing to the Decline

In addition to Canada, several other countries recorded drops in visitor numbers:

China

• Arrivals from China fell to 1.36 million, a 3.1% decline from the previous year.
• Ongoing visa processing issues and limited flight availability continued to hinder travel.

India

• India sent 1.79 million visitors to the U.S., down 5.2% from 1.89 million.
• Factors contributing to this drop included increased airfare and delays in visa processes.

Germany

• Germany recorded 1.52 million arrivals, marking an 11.8% decline.
• Economic issues in Europe, including high energy costs, limited outbound travel from Germany.

France

• Arrivals from France decreased to 1.36 million, a 6.8% decline.
• Rising costs for airfare and accommodation impacted French travelers’ decisions.

South Korea

• South Korea experienced a decline to 1.36 million visitors, down 5.8%.
• Travelers favored closer regional destinations due to rising airfare and currency fluctuations.

Impact on U.S. Tourism Sector

The declines from these countries sparked widespread effects across various sectors in the U.S., particularly retail, hospitality, and transportation. The cumulative effect indicated a pressing challenge for the American tourism sector to recover, especially from key international markets.

Conclusion

The significant reductions in tourist numbers from Canada, China, India, Germany, France, and South Korea illustrate a broader trend affecting U.S. tourism. Increased travel costs and economic uncertainties appear to be major deterrents, reshaping the landscape of inbound tourism to the United States. As these trends continue, measures to enhance travel accessibility and affordability will be crucial for revitalizing this vital sector.