The welcome mat is out, but international visitors are not showing up.
The post-pandemic travel boom that was expected to bring a flood of international visitors back to the United States has fizzled into a serious tourism drought. New data for 2025 reveals a shocking decline in inbound international travel, creating a $29 billion hole in the nation’s economy and leaving tourist-dependent businesses scrambling. This isn’t a single-cause problem, but a perfect storm of economic and social factors.
The result is a country that is suddenly a much less attractive destination for the global traveler.
1. The ultra-strong U.S. dollar makes everything too expensive.
The single biggest factor driving the decline is the continued strength of the U.S. dollar against other major currencies. For tourists from Europe, Asia, and Latin America, a trip to the United States has become prohibitively expensive. Their home currency simply doesn’t go very far, turning a mid-range vacation into a luxury expense. A hotel room that costs $200 a night, a $50 theme park ticket, or a $15 lunch can feel astronomical when converted from Euros or Yen, forcing many to choose more affordable destinations where their money will stretch further, as reported by The Economic Times.
2. A global economic slowdown is keeping people home.
While the U.S. economy has remained relatively resilient, key international markets, particularly in Europe and China, have been facing a significant economic slowdown. This has led to a sharp decrease in the disposable income available for long-haul travel among the global middle class. An expensive, multi-week trip to the United States is one of the first luxuries to be cut from the family budget when facing economic uncertainty at home, as shared by Travel-Intel. As a result, the pool of potential international visitors with the means to travel to the U.S. has shrunk considerably.
3. The perception of America as unsafe is growing.
Constant international news coverage of mass shootings, high crime rates in major cities, and intense political polarization has created a powerful perception that the United States is an unsafe and unstable country to visit, according to Travel and Tour World. For tourists from nations with very low crime rates, the idea of having to worry about gun violence while on vacation is a major deterrent. This negative image, whether entirely fair or not, makes it harder for families to choose the U.S. over destinations that are perceived as safer and more politically stable, like Canada or parts of Europe.
4. A difficult and lengthy visa process is a huge barrier.
For citizens of many countries, the process of obtaining a U.S. tourist visa is a bureaucratic nightmare. It is often expensive, requires an in-person interview at an embassy that can have a months-long waitlist, and has a high rate of denial with little explanation. This difficult and uncertain process discourages millions of potential visitors from even attempting to plan a trip. Many opt instead for countries that offer visa-free travel or a simple, online e-visa process, making the U.S. seem unwelcoming and inaccessible by comparison.
5. High domestic travel costs are a nasty surprise.
Even if international travelers can afford the flight to get to the U.S., they are often shocked by the high cost of traveling within the country. The price of domestic flights between major cities, rental cars, and even long-distance bus and train tickets is significantly higher than in many other parts of the world. A tourist might be able to fly to Los Angeles affordably, but then finds that getting to the Grand Canyon or San Francisco is another massive expense. This makes a multi-destination American trip a poor value proposition compared to other countries.
6. Fierce competition from more welcoming destinations.
The global tourism market is incredibly competitive, and many other countries are actively working to attract international visitors with streamlined visa processes, government subsidies, and aggressive marketing campaigns. Destinations in Southeast Asia and the Middle East, for example, have invested heavily in new tourism infrastructure and have made it easier than ever to visit. This fierce competition has siphoned off a significant portion of the market that might have previously considered a trip to the U.S., which has done comparatively little to court these travelers.
7. The permanent decline of international business travel.
The rise of remote work and the normalization of virtual meetings have led to a structural decline in high-spending international business travel. This is a massive, and likely permanent, blow to the U.S. tourism industry. Business travelers were a crucial source of revenue, as they often paid premium prices for flights and hotels and would frequently extend their trips for a few days of leisure. The loss of this entire segment has left a huge hole in the market that the leisure travel sector has been unable to fill on its own.
8. A lack of new attractions and investment.
While the U.S. has its iconic landmarks, there has been a relative lack of investment in new, large-scale tourist attractions compared to other parts of the world. Meanwhile, destinations in the Middle East and Asia are constantly opening futuristic new theme parks, museums, and architectural marvels. This can make the U.S. tourism product feel a bit stale to repeat international visitors who are looking for something new and exciting. A country can’t rest on its laurels forever in the competitive global tourism market, and a lack of innovation is starting to show.