The US experienced its steepest annual decline in international tourism since the Covid-19 pandemic, with new 2025 figures revealing that millions of foreign travellers chose to stay away, according to report by CNN.

Industry analysts say the downturn reflects not a global crisis, but growing international unease over American political rhetoric, rising travel costs, and perceptions of instability.

According to newly released tourism data, approximately four million fewer international visitors travelled to the US in 2025 compared with the previous year.

Total foreign visitor spending also fell sharply, declining by more than $8 billion despite higher average spending per traveller.

The 5.5% decrease marks the worst year-over-year drop in international tourism in nearly two decades, excluding the unprecedented collapse during the 2020 pandemic, said the report.

Analysts note the decline surpassed losses recorded during the 2008 global financial crisis..

Experts say several factors contributed to the downturn, including concerns over US domestic politics, immigration enforcement, tariff disputes, and geopolitical tensions.

International visitors have also cited confusion surrounding proposed visa fees, rising airfare costs linked to conflicts in the Middle East, and fears generated by images of unrest and crime circulated globally.

Juliette Kayyem, faculty chair of the Homeland Security Project at Harvard Kennedy School and a senior national security analyst for CNN, warned that America’s international image is deteriorating.

“We used to be a country that others wanted to emulate,” Kayyem said. “That narrative no longer exists.”

Kayyem argued that America’s “soft power” — its ability to influence through culture, values, and diplomacy rather than military force — is weakening.

She said many foreign audiences now associate the US with political dysfunction, immigration raids, violence, and instability.

Tourism economists warn the decline carries major economic consequences. Adam Sacks, president of Tourism Economics, described some recent US policies as “pennywise and pound foolish,” arguing that measures intended to generate revenue may ultimately damage the broader economy.

The World Travel and Tourism Council estimates that total visitor spending in the US was $8.4 billion lower in 2025 than in 2024 after adjusting for inflation and exchange rates.

Tourism Economics believes the true economic loss may be significantly larger, potentially as high as $25 billion compared with projected growth forecasts.

The decline stands in stark contrast to global tourism trends. Worldwide international travel increased substantially in 2025, with roughly 80 million more people traveling internationally than the year before.

However, many opted for destinations outside the US.

Canadian travellers accounted for the largest share of the decline. While visitor numbers also dropped from countries such as Germany, France, India, Australia, and China, Canadians represented the most dramatic reduction in cross-border travel.

Some Canadian travellers cited political tensions between the two countries as a key reason for avoiding trips south of the border.

Others pointed to concerns over tariffs, discussions surrounding Canada’s sovereignty, and broader geopolitical developments.

Business owners across popular US tourist destinations say the effects have been severe. Tourism operators in cities including Seattle, Los Angeles, and Orlando reported sharp declines in bookings, particularly from Canadian travellers.

In Santa Monica, California, tour operator Adam Duford said his business revenue fell to less than half of pre-pandemic levels. The downturn forced him to lay off all seven of his employees last year.

Florida also experienced major losses in international tourism, particularly in destinations heavily dependent on foreign visitors. Walt Disney World executives recently acknowledged softer international attendance and lower hotel occupancy rates during a quarterly earnings report.

Although there are early signs of recovery in some sectors, analysts caution that a full rebound may take years.

The US National Travel and Tourism Office projects that international arrivals may not surpass pre-pandemic levels until 2029.

Industry leaders are now urging policymakers to restore funding for Brand USA, the nation’s tourism marketing organisation, and adopt a more welcoming tone toward international visitors.

Despite concerns, upcoming global events such as the FIFA World Cup are expected to provide a temporary boost.

However, experts say those gains alone will not be enough to offset the losses suffered throughout 2025.

With competition for global travellers intensifying, tourism analysts warn the US faces a critical moment in rebuilding both its economy and its reputation abroad.