Why US Tourism Is Struggling: The Trump Slump and Its Lingering Effects on International Travel

As the US tourism industry grapples with a significant decline in international visitor numbers, new data reveals that the downward trend is being exacerbated by policy decisions from the previous administration, particularly the Trump era travel restrictions. According to recent reports from the U.S. Department of Commerce and the National Travel and Tourism Office (NTTO), the U.S. saw a 5.4% decrease in foreign arrivals in 2025. This marks the fourth consecutive year of declines in international visitors, particularly affecting travel from key markets like Canada, Mexico, and European nations.

While the U.S. has long been one of the top travel destinations globally, these new trends point to the lingering effects of the Trump Slump — a term used to describe the significant drop in tourism following the former president’s stricter policies on immigration, visa regulations, and global diplomacy. For many travelers, visa uncertainties and tightened border controls have discouraged visits to the U.S., creating a ripple effect that extends to hotel bookings, airline traffic, and local businesses in major tourist hubs like New York, Las Vegas, and Los Angeles.

What’s Behind the Decline in U.S. Tourism?

The travel industry has been struggling to regain the numbers of international visitors it lost during the pandemic. However, as global tourism rebounded in many parts of the world, the U.S. market remained stagnant. According to the NTTO‘s 2025 report, the largest drop in tourism numbers was recorded from Canada, traditionally one of the U.S.’s biggest international markets. Canadian travel to the U.S. fell by roughly 30%, making up a significant portion of the downturn.

Several factors have contributed to this decline:

1. Tougher Visa and Immigration Policies – The Trump administration imposed rigorous visa requirements, making it more difficult for nationals from certain countries to visit the U.S. These changes affected travelers from Mexico, Brazil, and several Middle Eastern nations, who faced delays and increased scrutiny when applying for U.S. visas. This has led many potential tourists to opt for alternative destinations.
2. Increased Air Travel Costs – Rising flight costs, particularly from Canada and Europe, combined with high exchange rates for the Canadian dollar, have also made traveling to the U.S. less affordable for international visitors. The cost of getting to the U.S. has driven many to consider closer and more affordable destinations such as Mexico and Caribbean islands.
3. Travel Bans and Restrictions – Several countries, including Iran, North Korea, and Venezuela, were subjected to travel bans, which further deterred tourism to the U.S. While exceptions were made for athletes and World Cup families, citizens from certain countries could not travel freely, which also created uncertainty among travelers.
4. Political and Social Climate – Many international travelers have expressed concerns about the political rhetoric and safety issues in the U.S. The perception of the U.S. as a divisive and politically charged destination has led to hesitation among travelers who feel that the country may no longer be as welcoming or safe as it once was.

Impact on the U.S. Economy and Hotel Industry

The economic impact of this tourism downturn is significant. The U.S. hotel industry has seen a reduction in bookings from international guests, leading to revenue declines in popular tourist destinations. Hotels in Las Vegas and New York City have been hit hardest by the drop in international arrivals, with room occupancy rates remaining below pre‑pandemic levels.

The casinos in Las Vegas, which have traditionally benefited from foreign visitors, are feeling the effects of lower international spending. Additionally, retail stores, local attractions, and restaurants dependent on international tourists have also been experiencing reduced sales and fewer customers.

FIFA World Cup 2026: A Chance for a Recovery?

With the 2026 FIFA World Cup set to be held in the U.S. (along with Canada and Mexico), many hope that the tournament will help revitalize international tourism. The U.S. is already planning infrastructure improvements and expanded travel services to accommodate the influx of visitors. FIFA President Gianni Infantino has made strong statements about how the World Cup will attract fans from all over the world.

However, experts remain cautious. Despite the excitement surrounding the event, the Trump-era travel restrictions and visa challenges continue to loom large. Concerns about racial profiling and immigration enforcement could still discourage fans from coming to the U.S. for the games. Some experts even argue that tourism recovery will depend on the lifting of certain policies that currently prevent visitors from freely entering the country.

Efforts to Address the Downturn

The U.S. Travel Association has launched campaigns to improve the country’s image and attract more international tourists. These efforts include collaborations with airlines to offer more convenient flights, streamlining visa processes, and promoting U.S. destinations that are less affected by international travel bans.

Additionally, destinations like California, Florida, and Hawaii are investing heavily in tourism infrastructure to ensure that once international visitors arrive, they are met with a seamless and enjoyable travel experience. While the downturn has slowed tourism growth, many believe that with the right adjustments, the U.S. will see a boost in 2026 from both the World Cup and improvements to its travel policies.

Conclusion: Looking Ahead for U.S. Tourism

Despite the ongoing decline in international tourism, optimism remains for 2026. As the World Cup draws closer and the U.S. government continues to work on improving the travel experience for visitors, foreign arrivals are expected to pick up. However, the Trump Slump still looms large, with concerns about visa restrictions, immigration enforcement, and global safety perceptions continuing to affect tourism growth.

For now, the tourism industry must focus on rebuilding the confidence of international travelers and positioning the U.S. as an open, welcoming destination for all. The road to recovery may be long, but with the right strategies in place, 2026 could signal a new era for tourism in the United States.

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