U.S. Tourism Faces Significant Downturn in 2025

An empty tourist attraction in the U.S. showcasing the decline in tourism

News Summary

The U.S. tourism industry is experiencing a major decline, with states like Florida, Hawaii, and Michigan reporting record drops in visitor numbers. This trend has persisted for eight consecutive months, attributed to rising travel costs and changing consumer preferences. While domestic travel shows promise with 92% of Americans planning to travel within the country, international tourism is expected to see a $12.5 billion decrease in spending, raising concerns for tourism-dependent economies. Strategic adjustments will be essential for recovery in the coming years.

U.S. Tourism Faces Significant Downturn in 2025

Florida is among the states experiencing a serious decline in tourism as national visitor numbers have fallen significantly over the past months. With a consistent downturn lasting for eight consecutive months, tourism across the United States is projected to continue its drop until at least the end of 2025. This downturn affects major tourist states including Hawaii, Arizona, Michigan, Illinois, and Massachusetts, among others.

In 2025, Florida saw its visitor numbers shrink from 19.4 million in 2024 to 15.9 million, marking a loss of 3.5 million tourists. Hawaii, another popular destination, experienced a decrease from 1.8 million to 1.5 million visitors, resulting in 300,000 fewer tourists. In Michigan, tourism attendance fell from 14.4 million to 10.9 million, while Arizona reported a drop of 600,000 visitors this year. The downturn is not limited to these states, as Illinois and Massachusetts also reported significant declines.

International visitor arrivals are experiencing a notable decrease, particularly from Canada and Western Europe. Rising travel costs, changing consumer preferences, and economic uncertainties are identified as key factors contributing to this troubling trend. Specifically, visitor counts in Florida declined across nearly all months of 2025, with month-by-month drops observed in October (from 1.5 million in 2024 to 1.4 million in 2025), November (from 1.5 million to 1.4 million), and March (from 1.7 million to 1.6 million).

Other months also showed declines, including July’s tourist totals which reduced from 1.9 million to 1.8 million.

While the overall tourist figures have decreased, domestic travel remains a bright spot in an otherwise bleak scenario, with 92% of Americans planning to travel domestically in 2025. This surge in domestic travel is expected to provide some relief to local tourism-dependent economies, particularly for regions accessible by car. The increasing popularity of local drive-to destinations suggests a shift toward shorter, more affordable vacation options.

Despite the expectation for increased domestic travel spending projected to rise by 3.9%, reaching $1.35 trillion in 2025, gaps in revenue remain severe for states that rely heavily on international visitors. Tourism associations across the country have raised alarms about the long-term effects of the sustained downturn and the potential economic repercussions on local businesses and job security.

Additionally, the World Travel & Tourism Council predicts a staggering $12.5 billion drop in international visitor spending in 2025. The U.S. Travel Association points to rising visa fees and shifting global tourism dynamics as contributing factors to the decline in international arrivals.

State-level statistics further illustrate this trend. For instance, Texas tourism saw a sharp 20% decrease, with impacts from hurricane evacuations in 2024 no longer providing a boost. New Hampshire experienced a staggering 30% fall in room sales and attraction visits due to a decline in Canadian visitors. Colorado noted a drop of 40%, particularly in tourism linked to visitors from Canada.

In Michigan, tourist numbers fluctuated yet remained down overall. In February 2025, only 887,000 travelers were reported, down from 995,000 in 2024. Illinois recorded 5.5 million travelers in 2025, a significant decrease from the 6.8 million in the previous year, while Massachusetts logged 3.2 million travelers, down from 3.8 million in 2024 despite some recovery in the late months of the year.

As international tourism struggles, local economies are reshaping themselves in response to these changes. With ongoing economic shifts, strategic adaptations in tourism practices will be essential to attract both domestic and international visitors for recovery.

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STAFF HERE PHOENIX WRITER
Author: STAFF HERE PHOENIX WRITER

PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.

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