Florida Joins New York, California, Minnesota, Texas, and Nevada in Tourism Crisis—Here’s Why Major US Destinations Are Seeing a Sharp Decline

Published on October 16, 2025
By: Paramita Sarkar

Tourism in several major U.S. states—including Minnesota, Florida, California, Nevada, New York, and Texas—has seen a troubling dip over the past few months. This downturn is raising alarms among local tourism officials, business owners, and state governments alike. These states, traditionally considered tourism powerhouses, are grappling with a significant drop in visitors, and experts are now looking at potential long-term impacts on local economies.

What is Happening?

The latest data reveals a nationwide trend in tourism decline. Minnesota, for instance, has witnessed a marked decrease in the number of summer visitors in 2025, severely impacting its tourism sector. Similarly, Florida, California, Nevada, New York, and Texas have all reported reductions in visitor numbers, prompting concern across various sectors. Tourism officials attribute the decrease to several factors, such as rising costs, international travel restrictions, and evolving global travel preferences.

In particular, Minnesota has seen a sharp decline in visitors from Canada, one of its key international markets. Other states, such as Florida and New York, have similarly reported fewer international arrivals, especially from important regions like Canada and Europe. The U.S. Travel Association has pointed out that states with major international airports, such as California and Texas, have been especially affected by the drop in cross-border tourism.

Where is the Decline Most Evident?

The decline has been particularly noticeable in popular tourist destinations such as Orlando, Miami, and Los Angeles. Hotels and attractions have experienced fewer visitors, and California’s famed theme parks, typically packed with both domestic and international tourists, have reported significantly lower attendance. Florida’s beaches and iconic spots like Walt Disney World are also seeing a drop in foot traffic.

In Texas, cultural hubs such as Austin and Dallas are facing lower visitor numbers, particularly in terms of international tourism. Additionally, Nevada’s Las Vegas, known for attracting millions of visitors annually, is experiencing fewer tourists in both its luxury hotels and casino resorts.

Why is This Happening?

Experts point to several contributing factors for this tourism downturn. Rising costs, particularly in airfare and accommodation, have made travel less affordable for many potential visitors. Labor shortages in the hospitality industry have further compounded the problem, resulting in fewer available services and lower overall satisfaction for tourists.

Global travel restrictions, particularly those lingering post-pandemic, have had significant effects on international tourism. With fewer international flights and stringent travel limitations, many overseas tourists have chosen to visit closer-to-home destinations, bypassing popular U.S. states altogether.

Moreover, a growing trend of “staycations” within the U.S. has led many people to explore local destinations instead of venturing abroad or to distant states. With rising airfares, many Americans prefer to spend their travel budgets on regional attractions rather than on flights to far-off locales.

When Did This Begin?

The decline in tourism became noticeable in 2025, particularly during the summer months when tourism typically peaks. Traditionally, this season sees a high influx of both international and domestic visitors, but this year’s anticipated crowds failed to materialize. Minnesota, for instance, experienced a significant decline in Canadian visitors in June and July when tourism numbers usually soar. This mirrors a broader trend across the country, with most states experiencing reduced visitation compared to previous years.

How Are States Responding?

In response to the tourism slump, state governments are beginning to implement measures to boost tourism. In Minnesota, local agencies have intensified promotional efforts to attract domestic visitors, with a focus on in-state tourism to revitalize local economies. They are also collaborating with the hospitality industry to maintain service quality despite staffing shortages.

Similarly, Florida and California are exploring ways to incentivize international visitors through targeted promotional campaigns aimed at key markets like the UK and Canada. These initiatives hope to draw back travelers who may have been hesitant due to rising costs or the lingering effects of the pandemic. Additionally, Las Vegas has been experimenting with tailored packages and more affordable travel options to appeal to tourists who have reconsidered visiting due to financial constraints.

In Texas, tourism officials are highlighting the state’s unique attractions—such as national parks and cultural festivals—to entice visitors seeking more affordable vacation options. New York is also emphasizing city-based initiatives, working to create more budget-friendly travel packages to attract both domestic and international tourists back to the Big Apple.

What is the Impact?

The decline in tourism is having a profound effect on local economies, especially in regions that heavily rely on tourism revenue. Businesses in the hospitality, retail, and entertainment sectors are experiencing decreased sales, with some smaller enterprises facing closure due to the drop in visitors.

Employment within tourism-dependent areas is being affected as well, with many workers seeing reduced hours or being laid off. The U.S. Travel Association warns that if the current trend continues, there could be long-term repercussions for the hospitality industry, potentially resulting in significant job losses in regions heavily reliant on tourism.

The Road Ahead

As these states navigate the tourism downturn, industry leaders are advocating for a collaborative approach involving local governments, the travel industry, and international partners to develop strategies for recovery. Increasing promotion of local attractions, offering discounted travel packages, and focusing on the sustainability of tourism could prove essential in revitalizing the sector.

While the current tourism decline poses significant challenges, these states can potentially rebound and once again attract travelers from around the globe through effective strategies and initiatives. Only time will tell how successful these efforts will be in reversing the trend and restoring tourism to pre-pandemic levels.