Now California joins New York, Nevada, Florida, Hawaii, Oregon, and North Carolina has been significantly impacted by the downturn of tourism brought about due to a combination of factors. International and domestic visitors now have to deal with rising travel costs and skyrocketing airfare and accommodation prices. Further, safety concerns, negative perceptions, and traveling to the US are costs in and of themselves. Strict immigration policies are making it more difficult for foreign visitors to acquire travel visas which, compounded with the long-standing effects of the COVID-19 pandemic, are fundamentally altering travel behavior and the public’s overall perception of travel. These realities have led to a marked decline in most tourism hot spots.
As with many states, California faces a downturn in tourism. As one of the biggest tourism hubs in the country, California is experiencing a troubling dip in visitors, joining other states such as New York, Nevada, Florida, Hawaii, Oregon, and North Carolina. The reasoning for the dip is compounded with multiple economic and social issues, as well as an overall decline in tourism across the nation.
Tourism has always been an integral asset for the state as it draws countless domestic and international tourists who travel to visit the iconic Hollywood, the Golden Gate Bridge in San Francisco, Disneyland, and Napa Valley. California tourism is now expected to decline further with the forecast estimating a dip of 0.7% in 2025. Additionally, international travel to California is expected to decrease by 9.2% owing to rising tariffs and negative attitudes towards the US due to recent trade policies. The lasting effects of the pandemic, a rise in travel expenditure, and associated risks further aggravate the situation.
While the trends in California’s tourism seem unfavorable, some other states are in even worse shape:
Las Vegas, the entertainment capital, has witnessed the steepest decline in tourism with an 11.3% visitor drop in June 2025. Strain on tourism within the city has been caused by high hotel prices, reduced Canadian visitation, and the effects of more stringent immigration controls. Consequently, hotel occupancy has worsened from 85.2% to 78.7%, signaling a downturn in the state’s tourism market.
New York is estimated to lose 17% of international visitors in 2025, costing the state an estimated $4 billion in spending. The increase in spending on flights in conjunction with visa delays and travel safety concerns has led to rethinking travel plans for many, influencing the state’s tourism decline.
Tourism in Florida has become more stable, focusing on overnight trips, although day trips continue to decline, dropping 5.8% when compared to 2022. Day trips continue to decline due to rising travel costs, perceptions of overcrowding, and a modest increase in overnight trips.
Hawaii, known for its stunning tropical tourism, is expecting a decline in visitors for the year 2024. This estimated decline of 3.3% is largely due to expensive travel and stiff competition from the Caribbean, Southeast Asia, and other regions providing the same natural beauty and allure.
In Oregon, international travel has remained slow due to rising competition in the global tourism market. Factors such as high travel costs have contributed to the reduced number of visitors from the UK and the country’s decline in market share of UK customers in 2022 and 2023.
The state of North Carolina is noted for its pulling domestic tourist revenues. In 2024, the state received 40 million visitors, spending $35.6 billion, which showcases a domestic boon. International visitation is still essential to the state’s tourism economy, and any decrease in international visitation may hurt local businesses and attractions.
The trend in tourism for the nation is also experiencing some of the same difficulties. The tourism industry within the United States is expected to take a heavy hit in 2025 as international arrivals are predicted to fall by United States 9 percent. This decline in visitation is likely to result in a loss of $12.5 billion in foreign tourism revenue. The decline in tourism in several states is felt by the local economy, which is heavily dependent on tourism spending.
The primary factors that contribute to the decrease in the tourism for the states of these regions are:
Regardless of these difficulties, a number of states are attempting to boost their tourism sectors. For the time being, travelers may be exploring International tourism less, but domestic tourism continues to thrive as travelers seek crowd-free, nature-oriented places.
California, along with New York, Nevada, Florida, Hawaii, Oregon, and North Carolina, is seeing a significant decline in tourism due to rising travel costs, safety concerns, stricter immigration policies, and the lasting impact of the COVID-19 pandemic. These factors have collectively led to reduced visitor numbers across these states.
The decrease in tourism for states such as California, Nevada, New York, Florida, Hawaii, and Oregon depicts a need to rethink on how the U.S. positions itself in the global tourism market. To stimulate growth, addressing the safety and cost concerns as well as reimagining the kinds of sustainable tourism products on offer is critical for the country and states alike. Alongside these changes, there is likely to be a rise in demand from the local and international market, and offer services tailored towards the diversified global travelers.
