International inbound travel to U.S. shows mixed recovery

Introduction to Travel Industry Trends

A passenger passes a giant American flag as they make their way to and from their gates during the Memorial Day weekend getaway at John Wayne Airport Orange County in John Wayne Airport, Santa Ana, CA on Thursday, May 26, 2022. Canadian travel dropped sharply in the first half of 2025, according to numbers by U.S. Travel Association.

Decline in Canadian Travel

Visits from Canada dropped by nearly 19% over the same time period last year, dragging overall international visits lower by 3.4%. That equates to a decline of $1.9 billion in travel spending. June was especially rough, with Canadian visitation down more than 26%, the association said.

Increase in Mexican Travel

The punch to the travel and tourism industry was mitigated by a noticeable increase in visitors from Mexico. The month of June and the first half of the year saw notable increases of 14.8% and 12.5%, respectively. Those 940,000 visits from Mexican travelers equated to just shy of half a billion in travel spending.

Industry Reaction

"This initial look at first-half 2025 data shows that while travel continues to be a priority, broader economic concerns remain on consumers’ minds. Amid a rapidly evolving global environment, international visits to the U.S. have been resilient across most markets—with the notable exception of Canada, our largest inbound source," the U.S. Travel Association said.

Impact on Major Travel Companies

Major travel companies Hilton, Wyndham, and Travel and Leisure, which have been closely watching the change in visitors, are all reporting earnings next week. Las Vegas is also reporting a decline in international visitors from Mexico and Canada, which may show up in results for casinos like Caesars, MGM, Boyd, and Red Rock Resorts.

Concerns and Challenges

The travel industry has been concerned about a big cut in President Donald Trump’s tax-and-spending law that slashes spending on marketing and promotion of U.S. destinations overseas, and increases fees for travel visas, which may be especially problematic ahead of the World Cup next year.

Conclusion

The decline in Canadian travel and increase in Mexican travel have significant implications for the travel industry. While the industry remains resilient, economic concerns and changes in government policies may impact future travel trends. As major travel companies report their earnings, it will be essential to monitor their performance and adjust strategies accordingly.

FAQs

Q: What was the decline in Canadian travel to the US in the first half of 2025?

A: Visits from Canada dropped by nearly 19% over the same time period last year.

Q: How much did the decline in Canadian travel impact the US economy?

A: The decline equated to a loss of $1.9 billion in travel spending.

Q: Was there an increase in travel from any other country to the US?

A: Yes, there was a notable increase in visitors from Mexico, with a 14.8% increase in June and a 12.5% increase in the first half of the year.

Q: How will the decline in international visitors impact major travel companies?

A: The decline may impact the earnings of major travel companies, including Hilton, Wyndham, and Travel and Leisure, which are reporting their earnings next week.

Q: What are the concerns of the travel industry regarding government policies?

A: The travel industry is concerned about the cut in spending on marketing and promotion of US destinations overseas and the increase in fees for travel visas, which may impact future travel trends.