Visitors holding back as America’s travel boom pauses

by Sheridan Eng

In coastal cities like Charleston and small destinations across the country, the summer season felt quieter than usual. Gift shops were running mid-season sales and long-standing attractions saw smaller numbers than last year. What looks like a small threat on tourism on the surface hides a bigger problem for America’s tourism economy. 

After a record-breaking rebound in 2024, the U.S. tourism industry is showing its first signs of slowdown. International arrivals have dipped, domestic travel has softened, and analysts say the United States is now the only major economy expected to lose tourism revenue in 2025. 

Part of the decline stems from cost. Airfare and accommodations remain high, and for many international travelers, the strong U.S. dollar means their money simply doesn’t stretch as far here as it used to.

Meanwhile, most travel analysts say perception plays a role such as headlines about political division, safety concerns, and strict visa requirements have made the U.S. feel less accessible compared with other destinations competing aggressively for tourism dollars.

According to the World Travel & Tourism Council, international visitor spending in the United States is projected to fall by roughly $12.5 billion this year, a sharp reversal for a country long considered the world’s most popular destination. 

The impact is already showing up in major destinations. Cities like Las Vegas and New York report softer demand from international visitors, and tourism analysts say many travelers who do come are spending more cautiously than in previous years.

Economists blame a mix of inflation, high airfare, and shifting global perceptions of the United States.

Professor Daniel Guttentag, director of the Office of Tourism Analysis at the College of Charleston, said the numbers reflect “a major shift in global travel behavior.” 

He pointed out that the slowdown isn’t tied to one single issue, but a combination of factors shaping how people choose where to travel. Guttentag said some of the hesitation comes from “politics and new restrictions that make the U.S. feel harder to visit,” and noted that travelers now have plenty of easier, more affordable alternatives abroad.

He explained that international inbound visitors coming to the United States have been hit especially hard. 

Guttentag said this group is especially sensitive to cost and policy changes, noting that higher airfare, long visa delays, and political tension have pushed some travelers to rethink trips to the United States.

"It’s simply easier and cheaper to go somewhere else right now," he said. “It’s a result of a few different things primarily related to politics. There’s new visa and passport restrictions, border concerns, and some dislike toward the current administration’s policies. It’s definitely had an impact.”

Guttentag noted that the effects aren’t uniform across destinations. International-heavy markets are feeling the slowdown first, while domestically driven destinations are holding up better.

“Affluent travelers are still going strong, but middle-income and budget travelers are pulling back,” he said.

Cities like Las Vegas or Orlando that depend on international tourists are seeing more pressure, while places like Charleston are more insulated because they attract higher-spending domestic visitors.

Fewer and fewer people are taking summer vacations to destination beaches right now.

National surveys support his observation. A CNBC poll found that only 46 percent of U.S. adults planned a summer vacation in 2025, down from 53 percent the previous year. Most cited higher costs of living as the reason. Guttentag said this type of pullback can ripple through entire economies.

“Tourism money doesn’t stop with hotels and attractions,” he said. “It flows through electricians, plumbers, barbers…the entire local economy.”

Young Hoon Kim, professor and department chair of hospitality and tourism management at the College of Charleston, said travelers are also re-evaluating where they feel comfortable going. 

He said this shift goes beyond economics. In his view, global travelers are more aware of social and political climates than ever before, and many are choosing destinations that feel calmer or more predictable. With so many choices available, even small concerns about safety or comfort can push visitors toward places that seem easier to navigate.

“Travel is supposed to make people feel safe and inspired,” Kim said. “If they feel political tension or see headlines about protests or restrictions, that feeling disappears.”

International travel patterns show the same hesitation. The number of Canadians visiting the United States has fallen sharply, hurting border cities from Buffalo to Seattle. Some destinations have tried rebuilding goodwill Buffalo even launched billboards reading “Buffalo Loves Canada”... but with limited success. 

That “somewhere else” increasingly includes Mexico, Spain, Portugal, and several Caribbean nations that are seeing a rise in international tourists.They’re attracting people who might once have chosen the United States, by offering cheaper airfare, friendlier visa rules, and better exchange rates. Kim said these shifts can reshape global tourism fast. 

“Countries that make travel easy and affordable are benefitting right now,” Kim added. “Meanwhile, travelers see the U.S. as expensive and sometimes unstable.”

Even small changes in perception can have large consequences. Kim noted that travelers often base their choices on emotions as much as on facts.

A destination doesn’t need to be genuinely unsafe or expensive to deter visitors, it only needs to give that impression. Once people begin to doubt whether a place will feel comfortable or inviting, that sense of uncertainty can easily outweigh the destination’s attractions.

“Confidence drives tourism. When people feel unsure about cost, safety, or even how they’ll be treated, they hold back…and that hesitation adds up.” - Dr. Young Hoon Kim, D

Tourism supports about nine million U.S. jobs and adds hundreds of billions of dollars to the economy each year. 

Even small drops in visitor numbers can ripple through local communities, forcing businesses to cut hours or delay expansions. Cities that rely heavily on tourism can feel the pinch quickly, as reduced spending affects everything from retail shops to public transportation.

A slowdown doesn’t just affect airlines and hotels; it trickles down to restaurants, event planners, and even construction workers building new resorts. 

Local businesses feel the impact almost immediately. When fewer visitors come, shops see lower sales, tour operators book fewer trips, and seasonal workers may face reduced hours, showing how deeply tourism connects to the everyday economy.

Charleston, for example, brought in an estimated $14 billion in tourism revenue last year but had seen slower growth this past summer, a reminder that even resilient markets aren’t immune to broader trends.

Still, both professors describe the current moment as a “plateau” rather than a crisis. Upcoming global events could give the industry a lift. The 2026 World Cup and the 250th anniversary of U.S. independence are expected to bring millions of visitors, and tourism boards are already preparing new campaigns to highlight the country’s cultural and historical appeal.

For now, though, the nation’s travel landscape feels quieter. As more families opt for backyard barbecues instead of flights, and museums see fewer tour buses pull up, classic tourist spots like theme parks and city tours are rolling out discounts and promotions to bring visitors back. Whether this lull becomes a lasting slowdown depends on how quickly travelers regain the confidence and financial comfort to explore again.

“I think we can hold it,” Kim said. “If the trend continues much longer, we’ll have to take it seriously, but right now it’s more of a correction after several boom years.”