Wisconsin Joins California, Montana, Michigan, Mississippi, New York and Others Facing a Drastic Tourism Plunge as Mexico and Canada Continue Travel Freeze to the US for Eight Months Straight: Everything You Need to Know

In 2025, the U.S. tourism sector is grappling with a drastic plunge in visitor numbers across several key states, including Wisconsin, California, Montana, Michigan, Mississippi, and New York. The ongoing travel freeze has particularly affected Canada and Mexico, two of the U.S.’s largest tourism markets, with their visitors declining sharply over the past eight months. This phenomenon, which has seen an upward trend in policy restrictions, economic barriers, and geopolitical factors, is now reverberating through U.S. destinations that once relied heavily on international travel.

States like Wisconsin and California are experiencing significant declines in tourism, with California seeing a drop of 0.6% and Wisconsin witnessing a 18.1% decrease in visitor numbers compared to 2024. Similarly, Montana, Michigan, Mississippi, and New York have all reported lower visitation rates, with Montana facing a 20.8% drop and Michigan reporting a 16.2% decline. These downturns have been exacerbated by a mix of factors, including increased visa requirements, the high U.S. dollar, and stricter border enforcement that have made travel to the U.S. more difficult and costly for international visitors.

Meanwhile, Canada and Mexico continue to face travel restrictions and a severe decline in U.S.-bound tourists, contributing to the Travel Freeze that has now lasted for eight months straight. As both countries implement more stringent entry procedures and the U.S. dollar makes U.S. vacations less affordable, travelers are increasingly opting for alternative destinations with easier access and lower costs. The Travel Freeze continues to reshape the global tourism landscape, and U.S. tourism destinations are feeling the long-term impact, with no immediate recovery in sight unless substantial policy changes are made.

Canada’s Declining Tourism to the US in 2025

Canada, historically a significant contributor to U.S. tourism, has seen a drastic shift in 2025, with Canadian road trips to the U.S. falling by 37% in July compared to the same month in 2024, following a 33% decline in June. Air travel from Canada also took a hit, with a 26% year-over-year drop in travelers. This marks the seventh consecutive month of declines, with double-digit reductions in both car and air travel since April. Interestingly, the decline is predominantly one-way: 7% fewer Americans drove to Canada in July, but air travel to Canada saw a 0.7% increase.

The decline is linked to recent U.S. visa and border policies, such as the suspension of the interview waiver program and the introduction of a $250 Visa Integrity Fee in 2025. These changes have complicated the travel process for Canadians, who once enjoyed a streamlined entry. The requirement for in-person interviews has led to longer wait times, while the added cost of the Visa Integrity Fee has made U.S. visits even more expensive, prompting many Canadians to rethink their travel plans.

Mexico Sees Significant Decline in U.S. Tourism in 2025

Mexico, traditionally one of the U.S.’s largest tourism markets, has faced a sharp downturn in 2025, with air travel to the U.S. dropping by 23% in the first half of the year, following an 11.8% decline in the first quarter. This decline is part of an ongoing trend, with seven months of consecutive drops in both air and land travel from Mexico to the U.S. The tightening of U.S. visa policies, including the $250 Visa Integrity Fee and the suspension of the interview waiver program, has created barriers for many Mexican travelers. The strengthening U.S. dollar and the political climate have further discouraged travel, as expenses rise and sentiments shift against the U.S. as a destination.

Looking ahead, bookings for the summer and fall are significantly lower compared to last year, indicating that the decline in visitors will persist. As a result, many Mexicans are choosing alternative destinations like Europe and Latin America, which offer easier visa processes. To reverse the trend, the U.S. must consider policy reforms, such as reinstating the interview waiver program and lowering visa costs, to make the U.S. a more appealing destination again.

Wisconsin’s Tourism Struggles in 2025

Wisconsin’s tourism sector is enduring a notable slump in 2025, with figures through July showing 32.2K visitors compared with 39.3K during the same period in 2024, an 18 percent decline. Every month tells its own story of contraction or stagnation. The fiscal year began weaker, with October 2025 down nearly 25 percent at 307 visitors versus 409 in 2024, followed by November easing slightly to 323 against 338. December mirrored the prior year at 1.3K, but momentum faltered in the first quarter: January edged ahead at 5.8K versus 5.5K, yet February tumbled to 8.7K from 11.2K and March fell to 11.7K from 13.8K, marking double-digit declines. The spring quarter hit hardest, as April collapsed by 35 percent to 2.8K compared with 4.3K, while May posted a rare gain, rising to 313 against 275. Summer brought mixed fortunes—June climbed slightly to 417 versus 275 a year earlier, but July held flat at 609 against 601. Crucially, 2024’s late-summer peak, which saw 733 in August and 467 in September, has yet to be reflected in 2025, leaving open the prospect of further shortfalls. Overall, the data signals a challenging year for Wisconsin tourism, with spring’s sharp downturn and missing late-summer volumes combining to weigh heavily on the state’s travel economy.

California’s Tourism Experiences Modest Decline

California’s tourism industry is facing a slight downturn in 2025, with year-to-date figures showing 77.5M visitors compared to 93.8M during the same period in 2024, reflecting a 0.6% decline. October and November saw stability, matching last year’s numbers with 7.8M and 7.6M respectively. December saw a modest increase of +2.5% at 8.1M, while January followed suit with a +1.3% gain at 7.9M. However, the first quarter showed a decline, with February down by 2.9% at 6.8M and March dropping 1.3% at 7.7M. The trend continued into the spring, with April showing a slight gain of +1.3% at 7.8M and May declining by 1.3% to 7.8M. The summer months were less favorable, with June down 3.8% at 7.7M and July following with a 2.4% drop at 8.3M. August and September data have yet to be reported, but based on last year’s strong performance in these months, the sector may face a deeper shortfall as 2025 progresses. The overall year-to-date total reflects a dip of 0.6%, with potential further losses as the year-end approaches.

Montena Tourism Faces Sharp Decline in 2025

Montena’s tourism sector is experiencing a sharp downturn in 2025, with year-to-date totals of 872K visitors compared to 1.3M during the same period in 2024, representing a 20.8% decline. The numbers reflect significant losses across most months, starting with October 2025, which saw a 12.4% increase at 107K, compared to 95.2K in 2024. However, the trend quickly reversed, with November showing a slight improvement of +1.1% at 74.6K versus 73.8K in 2024. The year continued with December showing a +2.0% gain at 84.8K, but from January through May, the losses became more pronounced, with February and March both facing significant declines of -13.7% and -18.8% at 60.7K and 66.5K, respectively. April saw another drop of -20.6%, reaching 60.2K, followed by a -22.1% fall in May at 75.3K. The summer months showed no relief, with June declining by -17.9% at 110K, and July dropping -15.3% to 166K. The data for August and September is still pending, but the figures from previous years show strong performances with 199K in August and 128K in September. The year-to-date results paint a concerning picture for Montena’s tourism, indicating an uphill battle for recovery in the second half of the year.

Mississippi’s Tourism Faces Major Decline in 2025

Mississippi’s tourism industry is experiencing a notable downturn in 2025, with year-to-date numbers showing 407 visitors compared to 545 during the same period in 2024, reflecting a 17.9% decline. The year began with a 35.2% drop in October at 35, followed by a surprising surge in November, which saw a 372.7% increase at 52 compared to 11 in 2024. However, the gains were short-lived, as December and January showed declines of 61.1% and 57.5%, reaching 7 and 17, respectively. February followed suit with a 63.6% drop at 20 from 55 in 2024. The trend continued through March and April, with March seeing a 18.5% decline at 66, and April suffering a sharp 73.1% drop at 18 compared to 67 last year. May saw a strong recovery, with a 107.1% increase at 58, while June also improved by 65.0%, reaching 33. Despite some summer recovery, July saw a slight decline of 7.3% at 101 compared to 109 last year. With August and September figures still pending, the sector is on track to finish the year far below last year’s performance, especially considering the strong summer months of July and August in 2024.

Michigan’s Tourism Struggles in 2025

Michigan’s tourism industry is facing a considerable decline in 2025, with year-to-date numbers showing 10.9M visitors compared to 14.4M during the same period in 2024, reflecting a 16.2% decrease. The downturn has been particularly steep in the spring and early summer months, contributing to the overall drop in tourism.

The fiscal year began with stable figures, as October and November both saw consistent numbers, matching the previous year with 1.2M and 1.1M, respectively. December showed a modest uptick of 9.1%, reaching 1.2M, compared to 1.1M in 2024, providing some hope for a solid winter tourism season. However, the momentum faltered in early 2025, as January recorded only 1.0M visitors, a slight increase of 0.7% compared to 993K in 2024, followed by a more significant decline in February, which saw a 10.9% decrease to 887K, down from 995K in the previous year.

The trend worsened in the following months, with March seeing a 100K drop to 1.1M, reflecting an 8.3% decrease, followed by April, which fell sharply by 13.3% to 954K compared to 1.1M in 2024. The losses continued in May, which recorded a 16.7% drop to 1.0M from 1.2M in 2024, and June followed suit with a 15.4% decline, falling to 1.1M from 1.3M. July also faced a 7.1% decline, with 1.3M visitors compared to 1.4M in 2024.

With August and September data still pending, 2025’s tourism sector remains on track to finish the year significantly below 2024’s totals. In 2024, the months of August and September saw particularly high visitor numbers, reaching 1.5M and 1.2M, respectively. Based on current trends, it is likely that Michigan will face a tough end to the year, with overall totals projected to fall short of last year’s performance.

This decline in tourism can be attributed to a variety of factors, including changing travel habits, weather-related disruptions, and potentially decreased consumer confidence. Despite strong early months in 2024 and the previous year’s higher performance, the first half of 2025 has shown a marked slowdown in visitors, with a noticeable lack of recovery in the summer months. The future of Michigan’s tourism industry in 2025 will likely depend on the ability to reverse these trends in the coming months.

New York’s Tourism Faces Decline in 2025

New York’s tourism sector is facing a downturn in 2025, with year-to-date numbers showing 26.7M visitors compared to 35.9M during the same period in 2024, reflecting a 13.0% decline. The fiscal year began with a strong showing in October, which saw a 6.9% increase at 3.1M visitors, compared to 2.9M in 2024. This was followed by November showing a +8.3% increase, reaching 2.6M, up from 2.4M last year. However, the trend reversed in the following months, with December seeing a modest 3.7% gain at 2.8M, compared to 2.7M in 2024. January also showed a slight improvement of 4.3%, reaching 2.4M, while February and March showed declines of 9.1% and 11.1%, respectively, dropping to 2.0M and 2.4M from 2.2M and 2.7M in the previous year. April and May continued the negative trend, with drops of 10.7% and 13.3%, respectively, reaching 2.5M and 2.6M compared to 2.8M and 3.0M in 2024. The summer months also saw a downturn, with June and July experiencing drops of 12.1% and 14.6%, reaching 2.9M and 3.5M, compared to 3.3M and 4.1M in 2024. The full-year results remain to be seen, but with August and September figures yet to be reported, the overall trend suggests that New York will face challenges in matching last year’s higher visitor numbers.

Other States See Sharp Declines in Visitor Numbers and Revenue

Nevada: Las Vegas recorded an 11.3% drop in visitation by June 2025. 2 million fewer visitors were reported in July, and hotel occupancy rates fell from 85.2% to 78.7%, with average daily rates dropping by 7%. June 2025 saw a 14% collapse in revenue per available room, the steepest fall in a decade.

Colorado: Aspen and Breckenridge saw over 40% fewer tourists, and Canadian visitors dropped by 58%. The short-term rental market experienced a 10% decrease in occupancy, and small business revenues from mountain guides and restaurants also dropped.

New York: The city reported a 17% decrease in international arrivals, with a loss of 2 million visitors, affecting Broadway ticket sales and Fifth Avenue retailers. Neighborhoods reliant on tourism, from Midtown hotels to Queens cafes, faced economic shifts as visitation numbers continued to decline.

Maine: For eight months, Canadian border crossings have dropped, with July alone showing a 28% decline. Border towns and local businesses, including family-owned diners and gas stations, have seen sharp revenue losses, leading to fears of a long-term tourism crisis.

New Hampshire: Canadian tourism dropped by 30%, with room sales, retail receipts, and attraction visits all declining. The state has struggled to attract domestic visitors, and the prolonged loss of cross-border traffic has put a strain on local businesses.

Montana: Kalispell saw 37% lower spending, and Whitefish hotels reported a 25% decline in business. Border crossings at Roosville were down 25% in the spring, and for eight months, traffic to Glacier National Park has remained low, threatening the region’s economy.

Texas: Houston’s tourism sector collapsed by 20% after a one-time boost from hurricane evacuees in 2024. Over the past eight months, hotel occupancy has remained soft, with fewer international arrivals and declining restaurant receipts, especially hurting small and mid-sized businesses.

Potential Reason Behind The Travel Decline in the U.S

The decline in tourism from key markets such as Canada and Mexico to the U.S. has been primarily driven by restrictive visa policies, rising travel costs, and increased immigration enforcement. In Canada, the most significant factor has been the 37% drop in road trips to the U.S. and a 26% decline in air travel in July 2025, marking the seventh consecutive month of declines. The new visa requirements, which include in-person interviews and the introduction of a $250 Visa Integrity Fee, have created logistical and financial barriers that dissuade many Canadians from visiting the U.S. Additionally, the strong U.S. dollar has made travel expenses more costly, reducing the appeal of U.S. vacations.

In Mexico, the downturn is equally severe. Air travel to the U.S. from Mexico dropped by 23% in the first half of 2025, while land travel—which traditionally represents a large portion of Mexican visitors—also felt the effects of the Travel Freeze. The same visa-related issues as those faced by Canadian travelers have compounded the problem. The $250 Visa Integrity Fee and complicated visa procedures have led to longer waiting times and additional expenses, pushing Mexican travelers to explore alternative destinations. The tightened immigration controls and the perception of the U.S. becoming a less welcoming destination are also influencing travel sentiment, with many choosing destinations with easier entry processes and lower travel costs.

Conclusion: Navigating the Travel Freeze’s Impact on US Tourism

The travel freeze has created a ripple effect across the U.S. tourism industry, with states like Wisconsin, California, Montana, Michigan, Mississippi, and New York all grappling with significant declines in international visitors. The ongoing declines in tourism from Canada and Mexico are particularly alarming, as both countries have historically been major contributors to U.S. tourism. Stricter visa and entry policies, rising travel costs due to the strong U.S. dollar, and negative perceptions about U.S. immigration enforcement have all compounded the problem, discouraging travelers from visiting the U.S.

As the travel freeze continues to unfold throughout 2025, U.S. tourism destinations are faced with the challenge of adapting to a new reality—one where international visitors are fewer and harder to attract. For the U.S. to regain its place as a top travel destination, it will need to address the barriers to entry, streamline its visa processes, and reverse the perception of the country as an unwelcoming place for international tourists. Without significant changes, the U.S. risks losing its competitive edge in the global tourism market for the long term.

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