In 2025, U.S. tourism is confronting a widespread downturn, with top destinations like Colorado, New York City, Las Vegas, and Florida battling sharp declines in international arrivals and shrinking domestic spending. Economic pressures, geopolitical tensions, and shifting travel preferences are forcing tourism boards to pivot and innovate to stabilize their industries.
Colorado Sees Dip Despite Solid 2024 Figures
Colorado ended 2024 on a strong note with 95.4 million visitors, $28.5 billion in traveler spending, and over 188,000 jobs supported by tourism. Still, the state is now grappling with setbacks in early 2025. Hotel occupancy is down 2% through June, hotel revenues have slipped 2.7%, and short-term rentals—especially in the Western Slope—have plunged nearly 10% in Q1.
These shifts reflect a broader trend of softening international tourism—international arrivals remain flat, impacting spending-heavy visitors who typically extend stays.
Las Vegas: Once Booming, Now Feeling the Bite
Las Vegas faces one of the sharpest downturns: June 2025 visitor numbers dropped 11.3% year-over-year, with hotel occupancy down 6.5% and room rates falling 6.6%. The decline is driven by rising travel costs and a cultural shift – younger travelers now favor digital entertainment and online gaming over traditional Vegas attractions.
New York City and Florida in the Slow Lane
New York City, long a global tourism magnet, is expected to lose 3 million international visitors in 2025. Reported room bookings for July are already 11.5% below 2024 levels, with declines continuing into autumn.
Florida is also encountering difficulty. International tourism to the state has dropped around 5% in early 2025, hitting hotspots like Orlando and Miami.
Broader Trends Impacting U.S. Travel
International Visitor Retraction
The U.S. is facing an 11.6% drop in international arrivals in March 2025, following policies perceived as unwelcoming. The result could be up to $9 billion in lost revenue, with recovery potentially delayed until 2029.
Canada Turned Off by Policies
Canadian travel to the U.S. is plummeting due to tariff disputes and political tensions. February trips by car dropped 23%, while air travel bookings tumbled around 40%.
Domestic Retreat & Budget Shifts
American travelers are cutting back: surveys report a 25% drop in summer vacation spending, and hotel occupancy is down by nearly 2% in June. Many are opting for staycations, road trips, and budget-friendly local escapes over long-haul travel.
Political Sentiment and Travel Hesitancy
Ongoing immigration crackdowns, tariffs, and aggressive rhetoric are shaking traveler confidence. Public sentiment has shifted, prompting the term “Trump Slump” to describe U.S. tourism’s downturn.
How Destinations Are Fighting Back
- Colorado is doubling down on its “Do Colorado Right” stewardship program, encouraging responsible, local travel.
- Las Vegas and New York are exploring rebranding efforts—Vegas is looking to reinvent as a more family-friendly, futurist destination.
- Across states, tourism boards are deploying staycation deals, “daycation” packages, and local promotions to attract budget-tensed domestic travelers.
Outlook for 2025 and Beyond
While 2024 was a record year, 2025 marks a sobering correction. Still, the tourism sector is adapting. With smart marketing, enhanced infrastructure for domestic travelers, and policy shifts that improve international welcome, destinations stand a chance to rebound.
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