Los Angeles Faces Tourism Decline Alongside Major U.S. Destinations
Los Angeles is joining the ranks of other iconic U.S. cities, such as New York, Chicago, San Francisco, Las Vegas, and Florida, as they grapple with a significant decline in international tourism in 2025. This downturn is not the result of a single event, but rather a complex mix of factors, including confusing border policies, stricter visa requirements, economic pressures, and environmental concerns, notably wildfires.
The Impacts of Wildfires on L.A.’s Tourism
Despite the fact that major tourist areas in Los Angeles remained untouched by the recent wildfires devastating Malibu and Pasadena, the headlines have sparked travel hesitance among international visitors. As a result, regions like Santa Monica and downtown Los Angeles are witnessing reduced hotel bookings and visitor traffic. The Los Angeles Tourism and Convention Board is proactively trying to counteract this negative perception, but they anticipate a substantial 25% to 30% drop in international visitors.
With airlines cutting flights to Los Angeles International Airport (LAX) and inbound traffic from Mexico cooling, the impact extends far beyond hotels and restaurants. Over 510,000 locals depend on tourism jobs, meaning the downturn reverberates throughout the entire community.
New York City: A Frigid Reception for International Travelers
New York City, celebrated for its vibrant culture and bustling streets, is forecasted to experience a dip of more than 3.5 million visitors compared to last year’s record of 67.6 million arrivals. International tourists are projected to decrease by 17%, marking one of the sharpest declines in recent history. Long visa wait times and confusing travel regulations have discouraged traditional Canadian and European travelers, leading to fewer bustling theaters and empty shops along Fifth Avenue.
Such a stark decline is forcing the city to reassess its tourism strategies, as the lure of easier, warmer destinations becomes increasingly appealing to international travelers.
Chicago: Political Tensions Impact Canadian Travel
Chicago has traditionally enjoyed a steady influx of Canadian tourists, especially during peak seasons. However, the political friction and weakened Canadian dollar have considerably drawn back cross-border travel. As a result, local restaurants, hotels, and attractions near the famous Navy Pier are all reporting a noticeable dip in visitor numbers.
Though the city is not yet sounding alarm bells, the shift in visitor demographics is altering the lively atmosphere of its summer tourism season.
San Francisco: Struggling While Domestic Business Grows
San Francisco’s tourism market presents a mixed picture. While total visitor numbers are expected to see modest growth, the city is struggling with a 5-6% decline in arrivals from significant markets like Germany, Japan, and China. Factors contributing to this downward trend include a strong U.S. dollar and complicated visa regulations.
Despite a resurgence in domestic tourism, the absence of high-spending international visitors—who generally stay longer and spend more—means businesses are adjusting their projections for the year’s second half.
Las Vegas: A City Feeling the Pressure
Las Vegas, tightly bound to tourism for its economic lifeblood, has seen visitor numbers decline by 7.8% in 2025. International travelers, particularly from Canada, Mexico, and the UK, are noticeably absent due to confusion and rising political rhetoric surrounding travel. This downturn has impacted casino revenues, down nearly 5%, and now entertainment venues are grappling with lesser ticket sales and reduced showtimes.
Hotels are shifting marketing strategies to attract a regional audience in an effort to counterbalance the fewer international travelers.
Florida: The Softening Market in the Sunshine State
Florida has relied heavily on Canadian tourists, particularly in vibrant cities like Miami, Orlando, and Tampa. This year, Canadian travel has diminished by 3.4%, spurred by currency issues and political unease. Although domestic tourism remains strong, international foot traffic is decidedly softer.
Visit Florida is now ramping up its campaigns, urging locals and nearby residents to “Rediscover the Sunshine State” while they await the return of international tourists.
A Bigger Picture: Canada’s Pullback and Global Hesitation
The downturn in Canadian tourism to the U.S. reflects a broader global hesitation. Cultural and political tensions, alongside an unfavorable currency exchange, have altered how Canadians and other international travelers view the U.S. As many consider alternative travel destinations in Europe and beyond, American tourism hubs must reflect on how they can rebuild trust and renew their appeal.
Cities such as Los Angeles, Las Vegas, and Chicago are not just witnessing fluctuations; they are experiencing a critical moment. To attract those elusive global travelers again, they will need to address entry barriers and reposition the U.S. as an inviting and exciting destination once more.