The summer vacation season in the US has begun without many of the international tourists who typically flood airports, hotels, and restaurants. The decline in foreign travel, especially from Canada and Europe, is being tied to the Trump administration’s immigration stance, visa restrictions, and broader political tensions. From Times Square to the Jersey Shore, businesses that rely on international visitors are now bracing for a slower season, the Wall Street Journal reported.
Roughly 1.9 million foreign passengers arrived at US airports in the past four weeks, a 6% drop from the same period last year, according to US Customs and Border Protection. Bookings through August suggest the slump will continue, with flights from Europe down 12% and sharper declines in cities like Los Angeles and Washington, D.C.
Canadians, once a pillar of US tourism, are staying home
Canada has long been the single largest source of international visitors to the US, but it now represents the sharpest decline. Flights from Canada to the US in April fell 20%, and land border crossings dropped 35%, according to Canadian government data. Travel bookings for the summer are down 22% compared to last year, with steep declines for destinations like Miami and Los Angeles.
The shift is being felt in places like Plattsburgh, N.Y., where Canadian tourists typically account for 70% of summer visitors. “We are very concerned about what’s ahead of us,” said John Parmelee, manager of the Naked Turtle restaurant, which now displays a “Bienvenue Canadiens!” sign and is considering offering discounts to Canadians.
Marc Toews, a 53-year-old long-haul truck driver from Canada, cancelled a long-planned US road trip that would have taken him from North Dakota to New York City. “There’s not a lot politically I can do, but what I can do is not spend my money in the US,” he said, citing President Trump’s comments about annexing Canada.
Europeans turn to alternatives amid visa and safety concerns
Travelers from Europe are also turning away from US destinations, often citing political discomfort and visa fears. David Byrne, a retired executive in London, had planned to spend $7,000 on a trip to New York for the US Open Tennis Championships. He cancelled the visit and booked a two-week trip to Santorini instead. “We end up spending quite small fortunes on holidays,” he said. “We’ll spend our money in Europe.”
Achim Diergarten, a 67-year-old lawyer from Munich, cancelled a planned West Coast road trip after reading about Europeans being detained or having their phones searched at US borders. “The USA is off limits for me for at least the next four years,” he said, adding that he will travel to Vancouver instead.
At the Garland Hotel in North Hollywood, international visitors are down about 30% compared to previous years. General manager Scott Mills cited visa fears, political concerns, and even misperceptions about safety following California’s January wildfires. “Some international tourists think the whole city burned down,” he said.
Local businesses fear long-term damage
While international tourism makes up a relatively small share of US GDP—around 3%—its impact on local economies can be profound. Tourism Economics had projected a 16% rise in international visitor spending for 2025 but now expects an $8.5 billion decline, or about 5%. The industry, dominated by small businesses, has limited capacity to absorb these drops.
In response, towns and cities are trying to win back foreign guests. Palm Springs temporarily hung red banners reading “Palm Springs ‘loves’ Canada,” and regional tourism offices from New York to Maine are rolling out discounts for Canadians. Still, many acknowledge that a shift in public sentiment—and policy—may be necessary to reverse the trend.
“This year, business is very bad,” said Omar Tallat, who runs a corn dog stand near Times Square and once relied on throngs of Canadian tourists. “There used to be thousands of people from Canada.”
With domestic travellers also scaling back due to economic concerns, and foreign tourists spending more per trip, the downturn leaves a gap that many fear won’t be filled anytime soon.
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