Lack of International Tourists Hurting U.S. Economy

America’s seeing a big drop in international visitors, and it’s costing the economy billions so far in 2025. Tourism is down around 10% from last year, partly due to rising global tensions and trade issues that make people think twice about visiting the U.S.

That’s a real problem for many American towns and cities. When travelers visit from other countries, they stay longer and spend more money—typically up to double what domestic tourists spend.

Experts say heightened tension in international relations is partly to blame. As tariff battles heat up and countries argue, more and more travelers from places affected by U.S. policies are choosing to vacation somewhere else instead.

Hotspots feeling the pinch

Big tourist destinations like New York, Miami, San Francisco, and Las Vegas are noticing fewer foreign visitors. Business owners in these cities report fewer diners in restaurants and open bookings at popular attractions during what normally would be peak seasons.

Local tourism groups are working overtime to lure international visitors back. They’re launching marketing campaigns to reassure travelers that America is still open and welcoming. But changing global opinions takes time, especially with other attractive vacation spots around the world competing for the same tourists.

Bringing travelers back to the U.S.

Turning things around won’t be easy, experts say. America needs more than catchy ads—it may require shifts in policy and international perception. That’s a tough task, especially as countries around the world step up efforts to attract international tourists.

With the economy still recovering from recent disruptions, the drop in foreign visitors isn’t just bad news financially. It’s also a signal that America may be losing some of its global appeal.

Before you vacation this year

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As soon as you book, check out a Travel Insurance Comparison Tool like this one and see how little it costs to have peace of mind.