The U.S. once stood as the unrivalled destination for global travellers—where travellers flocked, economies thrived and the “American Dream” shone bright. But a quieter shift is underway. As visitor numbers fall, some of America’s most tourism-reliant states now face deeper structural challenges. Here we explore the top ten states feeling the impact and what’s driving the change.
1. Florida — The Sunshine State’s Shadow
Florida has long epitomised American tourism: sunshine, beaches, theme parks, and international arrivals. But recent reports show visitor numbers falling significantly, with international tourism down markedly in 2025. Travel and Tour World+2Travel and Tour World+2
With fewer arrivals, state budgets, resorts and local businesses are feeling the strain.
2. Nevada — Las Vegas Losing Its Luster
Nevada—and especially the Las Vegas Strip—has seen one of the sharpest declines. According to 2025 data, tourism in Las Vegas dropped approximately 11% overall, and international visitor numbers plunged around 13%. AP News+1
From casinos to concerts to hotel rooms, fewer seats are being filled.
3. Hawaii — Paradise Under Pressure
Hawaii’s tourism engine has cooled. Visitor counts declined by millions over a span of years, and spending per tourist has also dipped. Travel and Tour World+1
What was once a luxury escape is becoming increasingly cost-prohibitive for many.
4. Michigan — The Unexpected Hit
Often overlooked in tourism discussions, Michigan’s numbers have fallen harder than many expected. One report shows a drop from ~14.4 million visitors to ~10.9 million in a short time. Travel and Tour World
The ripple effects hit local businesses, especially those dependent on international visitors.
5. New York — The Global Magnet Weakening
New York City once welcomed millions of international visitors annually. In 2025 alone, it’s estimated to lose around 3 million foreign tourists—roughly a ~17% decline. Travel and Tour World
Luxury retail, Broadway shows, short-stay hotels—all now face sharper pressure.
Also Read: Top 5 Richest States in America
6. Texas — When Volume Doesn’t Fully Shield
Texas has long relied on sheer volume of visitors, but even here declines are evident. One source cites an 8.6% drop in January–August 2025 compared to the same period in 2024. Travel and Tour World
The state’s massive scale lends resilience, yet the pattern is clear: tourism is no longer immune to macro trends.
7. Washington State — Overlooked but Vulnerable
Washington, along with several other states like Mississippi and New Jersey, has experienced significant tourism declines for eight straight months in 2025. Travel and Tour World
Regions once seen as safe tourist bets are now part of the broader slump.
8. Illinois — Chicago and the Midwest Feel It
Illinois, anchored by Chicago, is also part of the downward shift. As visitor flows recede, the state’s tourism-dependent sectors encounter headwinds. Travel and Tour World+1
From convention business to international students, fewer visitors means fewer downstream effects.
9. Massachusetts (and New England) — A Quiet Decline
Though not always in headlines, several New England states like Massachusetts are seeing clear tourism contraction. Travel and Tour World+1
Historic charms might persist, but the volume necessary to sustain tourism-led economies is falling.
10. California — The Iconic Destination Misses Its Mark
California, home to Hollywood, major cities and famous landmarks, is not immune. Despite its size and appeal, hotel bookings and international arrivals are down. Travel and Tour World+1
When even the biggest brands in U.S. tourism stall, the signal is powerful.
What’s Going On?
Several intersecting factors help explain this downturn:
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Cost and currency effects: A strong U.S. dollar makes travel in America relatively expensive for many overseas visitors. Reuters
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Visa and entry barriers: Reports suggest stricter entry procedures and lengthier processing are deterring potential tourists. The Economic Times+1
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Image and perception: Issues like safety, accessibility, and welcoming-ness are influencing travel choices. As one analysis puts it: this is not simply decline—it’s a change in why people travel to the U.S. The Guardian
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Global competition: Destinations in Asia, Europe, and Latin America are becoming more competitive—offering similar experiences at lower cost and fewer barriers.
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Domestic substitution: Some tourism loss is due to U.S. residents opting for domestic travel or shorter trips rather than long international visits.
Also Read: The best U.S. Vacation Spots
Why It Matters
Tourism isn’t just leisure—it’s economic lifeblood for many states.
When visitor spending falls: hotels cut staff, restaurants shrink menus, retail sees fewer impulse buys. Local governments lose tax revenue. Jobs vanish. The ripple effects run deep.
Moreover, the shift signals something broader: the U.S.’s role as the global destination of choice is no longer automatic. What was once a default set of assumptions—“If you travel, you go to America”—is now being reevaluated.
What Comes Next?
States and sectors are adapting. Some potential responses include:
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Diversifying visitor markets and targeting domestic travellers.
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Reducing visa and border friction to attract more international guests.
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Reworking tourism branding to focus on value, sustainability, and novelty.
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Embracing technology and niche travel experiences to stay competitive.
The question is not only whether tourism numbers will rebound—but how the U.S. tourism model will evolve.
Final Thoughts
The 2026 figures don’t just point to empty hotel rooms. They hint at a deeper transformation in travel, economics and global perception. While the U.S. remains a powerhouse in many respects, its once-dominant tourism magnetism is under strain.
For the ten states highlighted here, this moment is less about collapse and more about redefinition. If they respond strategically, the decline could become a pivot toward a new era of travel—one built on competitiveness, inclusivity and innovation.
Otherwise, the risk is that some corners of the U.S. tourism map may fade quietly into what-was-once-real.
🔗 External Links & References
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“Foreign travel spending in US to decline 7% in 2025, report says” — Reuters. Reuters
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“Hooray for Hollywood? Why tourists are giving the US a miss” — The Guardian. The Guardian
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“Indian visitors to US dip in June; first decline in over two decades” — Economic Times. The Economic Times
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Travel And Tour World: “Florida Joins Hawaii, Michigan, Illinois … as US Tourism Continues Its Drop for Eight Straight Months” Travel and Tour World
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Travel And Tour World: “Washington Joins Mississippi, New Jersey, Ohio … as US Tourism Continues Its Freefall for Eight Months” Travel and Tour World