Colorado and the Western U.S. Struggle with Declining Summer Occupancy Amid Drop in International Tourism
As summer unfolds across the United States, key mountain destinations in the West—including Colorado, Utah, California, Nevada, Wyoming, Montana, and Idaho—are experiencing a sharp decline in occupancy rates. This downward trend is largely attributed to a significant decrease in international arrivals, particularly from Canada, Western Europe, and Mexico—regions that have traditionally been strong contributors to summer tourism in the Western U.S.
According to data released by Inntopia’s DestiMetrics in May 2025, bookings for mountain destinations have now fallen for six consecutive months—a slump not seen since the pandemic-era travel disruptions of 2020. Despite a partial uptick in domestic tourism, the gap left by the shrinking international market has proven too large to bridge, with mountain resorts and hotels now adjusting their summer outlook.
Colorado Takes a Hard Hit
Among the Western states, Colorado has emerged as one of the hardest hit. The state witnessed a 15.1% drop in occupancy for May 2025 compared to the previous year. This decline is compounded by slower domestic growth and broader economic uncertainty, with average daily rates (ADR) increasing by 1.5%, pricing out some potential budget-conscious travelers.
Colorado’s situation is further complicated by rising local unemployment. In May, the state recorded an unemployment rate of 4.8%, surpassing the national average and potentially reducing local spending on leisure and hospitality. As a result, even in-state travel and weekend trips have slowed, leading to a more pronounced decline in overall tourism revenue.
International Travelers Pull Back
International tourism, a critical lifeline for mountain destinations during summer, is experiencing a significant contraction. According to Colorado Tourism Office and national travel trend monitors:
- Bookings from Canada have plummeted by 55.5%
- Arrivals from Western Europe are down 35.5%
- Visitors from Mexico have dropped by 5.4%
These three markets alone contributed a combined $265 million to Colorado’s tourism economy in 2024. Their sudden absence in 2025 is leading to revenue losses not just for hotels, but for ski resorts, tour operators, restaurants, and transportation providers that rely heavily on summer leisure travel.
A stronger U.S. dollar, coupled with inflation and high airfare costs, has made travel to the U.S. less affordable for international visitors. Additionally, rising geopolitical tensions, including instability in various parts of the world, have further dampened global travel sentiment.
Domestic Travel Can’t Fully Fill the Gap
There is a silver lining: domestic travel bookings rose 1.7% year-over-year across the Western states. States like Utah, California, and Nevada saw only marginal dips in occupancy—around 0.7%—thanks to local and regional travelers continuing to pursue nearby summer getaways.
However, even this growth is uneven. Many families and individuals are opting for shorter trips, off-season travel, or lower-cost destinations. The rising costs of lodging, food, and fuel have led many Americans to tighten their travel budgets or delay vacation plans altogether.
Forecast for the Rest of Summer: A Rocky Road Ahead
The outlook for the remainder of the summer season across the Western U.S. remains cautious. Revised projections show:
- Colorado’s July bookings down 5.1%
- August bookings down 0.9%
- September bookings down 4.7%
While these drops are smaller than May’s figures, they indicate a continuing trend of suppressed demand, especially from foreign travelers. Other states are seeing similar trends, prompting regional tourism boards to pivot their marketing strategies.
To combat these declines, Colorado and neighboring states are ramping up domestic campaigns, promoting value-driven packages, outdoor experiences, and road-trip-friendly itineraries aimed at attracting cost-conscious U.S. tourists.
Recalibrating the Tourism Strategy
Tourism leaders across the Western U.S. now face a complex challenge: reigniting international interest while preserving domestic growth. Strategies being implemented include:
- Increased participation in global travel trade events to reengage international travel agents
- Localized tourism promotions in Canada and Mexico
- Partnering with airlines to offer route incentives and joint promotions
- Highlighting wellness, sustainability, and cultural experiences to diversify appeal
In Colorado, the Colorado Tourism Office is actively exploring ways to collaborate with international tour operators and revive pre-pandemic travel corridors. Meanwhile, municipalities such as Aspen, Vail, and Breckenridge are also offering new summer festivals and discounted passes to drive local footfall.
A Long-Term Tourism Challenge
The decline in international bookings signals a broader structural challenge for the Western U.S. tourism industry. While short-term marketing shifts can help soften the blow, sustainable recovery will depend on addressing macroeconomic concerns, maintaining affordability, and ensuring political stability that reassures long-haul travelers.
If Colorado and other mountain states are to reclaim their pre-2020 momentum, strategic planning and international engagement will be essential. Despite the rocky start to summer 2025, there is cautious optimism that with targeted efforts and economic stabilization, the Western U.S. can once again emerge as a top-tier summer destination for both domestic and global visitors.
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