Decline in International Travel to the US Hurts Arizona’s Economy: What’s Behind the Drop

Arizona, long a favorite destination for international visitors, is facing an alarming decline in tourism, particularly from Canada, as global tourism shifts. Despite a global rise in travel, the United States has seen a sharp decrease in international visitor spending, a trend that is hitting Arizona hard. According to a recent report from the World Travel and Tourism Council (WTTC), the U.S. is the only country among 184 nations showing a drop in tourist spending. This has raised concerns within the Arizona tourism industry, as businesses that depend on international tourists—especially Canadians—are starting to feel the financial strain.

Tourism in Arizona has been historically driven by visitors from countries like Canada, and the recent decline is particularly noticeable in regions like the Valley of the Sun and Yuma, which typically receive significant numbers of Canadian snowbirds and tourists. This sudden downturn raises questions about how Arizona’s tourism sector can recover and adapt to the changing global travel dynamics in 2026.

Decline in U.S. International Travel: What’s Driving Arizona’s Tourism Downturn

According to the WTTC report, several factors are contributing to the decline in international travel to the U.S. In particular, rising travel costs, tightened immigration policies, and political uncertainty are playing a major role in deterring travelers from visiting the country. The global tourism rebound has seen many countries thrive, but the U.S. is seeing a slower recovery in terms of international tourism spending.

Mike Huckins, with the Greater Phoenix Chamber, observed a noticeable drop in Canadian visitors this year. Huckins pointed out that Canadian tourists are responsible for pumping $1.5 billion annually into Arizona’s economy, and the decline is being felt especially in places like Yuma, which largely relies on tourism from Canada. “We’re definitely seeing a dip in visitors,” Huckins said. “Canada’s impact on the Arizona economy is significant, and we’re feeling that absence.”

Arizona Faces Economic Challenges as Global Travel to the U.S. Declines

The decline in international tourism is expected to have a ripple effect across Arizona’s tourism-dependent industries, including hotels, resorts, and local businesses. Visitor spending is a key economic driver for the state, and the recent downturn is likely to affect tax revenue, job creation, and local business profits. In 2025, Arizona’s tourism sector generated billions in revenue, but as global travel to the U.S. slows, Arizona businesses are left to adapt to a new and unpredictable landscape.

Local businesses that typically depend on long-term visits from international tourists are now struggling with more uncertainty. As the 2026 tourism season approaches, there are concerns that Arizona’s economy will continue to face challenges in attracting international visitors, especially if rising costs and visa restrictions persist.

How Rising Costs and Immigration Policies Affect Arizona’s Tourism

The increase in travel costs and immigration barriers have made it more difficult for international travelers to visit the U.S., particularly Canadians who historically make up a significant portion of Arizona’s tourist base. Travel expenses, including airfare, accommodation rates, and exchange rates, have made U.S. travel more expensive for foreign visitors. For Canadian snowbirds, who traditionally flock to Arizona for the winter months, this has meant fewer long stays and more domestic travel options.

On top of that, tightened immigration policies have added further complications for international travelers. The Trump-era restrictions on immigration and travel have created an environment of uncertainty, particularly for tourists who feel wary about crossing the U.S. border. For many, it’s simply easier to visit other destination countries where the travel process is more straightforward.

The Canadian Impact: Why Arizona is Seeing Fewer Visitors from the North

Canada has long been the top international source market for Arizona’s tourism, particularly for the winter season, when Canadians seek warmer climates and escape the cold. But 2025 data shows a decline of 18% in Canadian visitors to the state compared to the previous year. As Canadians seek out other destinations such as Mexico and Caribbean resorts, Arizona is facing a drop in spending and visitor numbers.

The decline in Canadian tourists is especially noticeable in areas like Yuma and Phoenix, where Canadian snowbirds typically contribute to the local economy. Local hotels, restaurants, and attractions that cater to this demographic are already feeling the financial pressure. Huckins mentioned that Yuma specifically has seen a sharp decrease in Canadian dollars as fewer travelers make the long trek to the U.S. for their winter vacations.

What Arizona Can Do to Bounce Back From the Decline in International Tourism

As Arizona works to recover from the decline in international tourism, the state needs to revitalize its appeal for both domestic and international visitors. There is a growing need for statewide marketing campaigns that target domestic U.S. travelers, as well as increased efforts to attract international markets once again, especially as global tourism continues to rebound. By collaborating with tourism agencies, airlines, and local businesses, Arizona can look to boost its tourism profile and overcome the challenges presented by changing global travel dynamics.

In addition, Arizona will need to focus on sustainable tourism and creative travel experiences to keep visitors engaged. Offering unique cultural, culinary, and adventure-based experiences will be key to maintaining tourism interest during uncertain times. Encouraging more visits to national parks, local festivals, and historic sites could also help maintain Arizona’s standing as a top travel destination in the U.S..

Conclusion: The Future of Arizona Tourism in a Changing Travel Landscape

As Arizona continues to navigate the tourism decline caused by immigration policies and rising travel costs, its tourism sector remains resilient and adaptable. The challenge now is to ensure that the local economy can bounce back, using new marketing strategies and adapting to the changing needs of global travelers. While Canadian tourism has slowed, Arizona’s hospitality industry must continue to evolve, focusing on local experiences, domestic travelers, and new international markets to remain competitive.

The long-term outlook for Arizona tourism remains positive, with new initiatives and a strategic focus on sustainability and inclusive travel playing a key role in the recovery process.

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