Cities like Orlando, known for its thrilling theme parks, Seattle with its iconic Space Needle, and New York City—home to Broadway, the Statue of Liberty, and endless cultural landmarks—are leading the way. As international tourism continues to face challenges, these U.S. destinations are making themselves even more attractive by offering lower airfares, hotel rates, and car rental prices. According to AAA, domestic flight costs have dropped by 6%, hotel stays have become 11% cheaper, and car rental prices are 3% lower, making these cities more accessible than ever
The decline in international arrivals, particularly from Poland, France, the UK, Spain, and Canada, has had a profound effect on U.S. tourism. Canada, historically the U.S.’s largest source of international tourists, saw a 34% drop in visitors in 2025, and Germany, Spain, and the UK are also reporting declines in travel. These countries, once staples in U.S. tourism, have seen a sharp reduction in visits due to travel restrictions, economic pressures, and political tensions. As these international sources of visitors decline, the focus has shifted toward domestic tourism to fill the gap.
To combat these challenges and boost U.S. travel, cities like Massachusetts, Atlanta, New York, and Seattle are positioning themselves as prime destinations for Americans looking for a getaway. This Labor Day, these cities are offering exclusive travel deals to encourage more domestic visitors to explore what the U.S. has to offer. Whether it’s a cultural trip to Boston, a theme park adventure in Orlando, or a relaxing escape to the outdoors in Seattle, there’s something for every type of traveler. As global tourism to the U.S. faces a downturn, the resilience of American destinations like Massachusetts and Orlando shows how U.S. tourism is adjusting to meet the needs of its domestic market while continuing to attract both leisure and business travelers.
How International Travel is Affecting the US Travel Landscape
Mexico: Mexico, a major neighbor to the U.S., also experienced a significant decline in tourism. Air arrivals from Mexico fell by 23% in March 2025. This drop was largely influenced by restrictive U.S. border policies and mounting economic pressures. Many travelers from Mexico are now opting for closer, more affordable destinations within Latin America instead of the U.S.
Latin America: Tourist arrivals from Latin America generally decreased in June 2025, though Argentina, Brazil experienced some gains. The rest of the region faced reductions due to stricter travel regulations, visa complications, and a lack of affordable options. Visitors from these countries are increasingly choosing regional destinations, with many steering clear of the U.S. due to increased travel costs.
Ecuador: In June 2025, Ecuador saw a 14.1% drop in visitor numbers. This decline is attributed to rising costs, visa challenges, and the ongoing issues related to U.S. entry procedures. Many Ecuadorians have turned to neighboring countries in South America for their travel plans, reducing the number of tourists visiting the U.S.
Germany: Germany experienced a sharp 20% decline in visitor numbers in March 2025. This decline is largely due to new border restrictions, a perceived unwelcoming political climate, and the rising costs of travel. German travelers, who have historically been a major source of tourism to the U.S., are now exploring alternatives in Europe and Asia.
France: France saw a 5.5% decline in visitor arrivals to the U.S. in June 2025. The drop is linked to higher travel costs, as well as concerns over new U.S. immigration policies, which have made it more difficult for French tourists to visit. This trend is expected to continue as many French tourists now prefer destinations closer to home or in Southern Europe.
United Kingdom: In March 2025, U.K. arrivals dropped by nearly 15%, followed by a smaller 1.1% decline in June 2025. This reduction is due to several factors, including political tensions between the U.K. and the U.S., as well as tightened immigration policies. The U.K. has long been one of the U.S.’s top sources of international visitors, but now travelers from the U.K. are increasingly favoring European destinations for vacations.
Spain and Ireland: Spain and Ireland both saw a decline of over 20% in March 2025, as reported by the U.S. Department of Commerce. These drops in visitor numbers can be attributed to travel restrictions and negative perceptions of the U.S. due to immigration policies. Many travelers from Spain and Ireland are now opting for more accessible and affordable destinations in Europe.
Scandinavia (Denmark, Norway, and Sweden): Denmark, Norway, and Sweden all registered double-digit percentage drops in June 2025. The decline is attributed to rising travel costs, visa difficulties, and growing dissatisfaction with U.S. policies. Scandinavians are increasingly exploring other countries, particularly in Southern Europe and Asia.
The Netherlands: The Netherlands also saw a significant decrease in U.S. tourist arrivals due to travel advisories and complications related to U.S. executive orders. The Dutch government issued warnings to its transgender and nonbinary citizens, advising them of potential issues at U.S. borders, which discouraged many from traveling. This has led to a shift in Dutch travel preferences toward European destinations.
Poland: Tourist numbers from Poland showed a marked decline in June 2025, following the broader European trend. Political concerns and the challenges posed by new U.S. entry policies were the primary drivers of the decrease. Many Polish tourists are now favoring European countries with fewer travel restrictions and lower costs.
South Korea: South Korean tourism to the U.S. dropped by 10.7% in June 2025, following a 15% decrease in March. This decline is due to a combination of higher travel costs, heightened scrutiny at U.S. borders, and geopolitical tensions. South Koreans are now increasingly opting for other destinations in Asia and Southeast Asia, with a preference for Japan and Vietnam.
China: China has seen a sharp decline in visitors to the U.S., particularly by 2024. After experiencing growth in the early 2010s, arrivals from China have decreased significantly, with Chinese travelers now opting for destinations like Vietnam, Thailand, and Singapore. Political tensions and visa restrictions are major factors influencing this shift.
India: Tourism from India to the U.S. fell by 8.1% in June 2025. Rising travel costs, stricter border controls, and political factors have contributed to the decline, with Indian travelers now favoring Europe and Southeast Asia over the U.S.
Hong Kong, Indonesia, and Pakistan: Hong Kong, Indonesia, and Pakistan all saw double-digit declines in June 2025. Increased scrutiny at U.S. borders, visa complications, and geopolitical tensions have discouraged tourists from these regions. As a result, many travelers have opted for nearby destinations in Asia and the Middle East.
Vietnam: Vietnam also experienced a double-digit decline in tourist arrivals in June 2025. The growing cost of travel and complicated entry requirements have pushed many Vietnamese tourists to regional destinations like Thailand and Singapore, where they find more accessible travel conditions.
Canada: In May 2025, vehicle traffic from Canada to the U.S. decreased by 38%, and air arrivals dropped by 24% year-over-year. The sharp decline is attributed to anger over new border procedures, confusion about regulations, and growing dissatisfaction with U.S. political actions. Many Canadians have chosen alternative destinations, both within North America and abroad, as a result of these travel restrictions.
How Major Destinations Are Affected by the Decline
Florida: Decline in Tourist Arrivals
In Florida, Canadian arrivals fell by 3.4% in Q1 2025 with just over 1.22 million visitors. Early forecasts show an even steeper drop, with air bookings down by 70% compared to the previous year. Florida, heavily reliant on international visitors, faces challenges as these declines deepen through the year.
New York: Visitor Numbers Drop
New York is facing a 20% decline in Canadian visitor numbers in 2025. The state’s northern border crossings recorded a 25% drop in May and 21% in June, with some areas like the Niagara region seeing a 30% decrease. The decrease is impacting local economies, especially in areas dependent on cross-border tourism.
Washington State: Decline in Border Crossings
Washington State has seen a 29% drop in border crossings from British Columbia between February and April 2025. Car traffic from BC fell sharply from 1.25 million to 912,000 vehicles. This reduction has significantly impacted retail, restaurants, and other local businesses reliant on cross-border shopping.
Maine: Sharp Decline in Canadian Tourism
In Maine, tourist arrivals dropped by 30% since January 2025, with 85,000 fewer visitors in May compared to 2024. June saw a decline from 300,000 to 210,000 arrivals. Popular spots like Old Orchard Beach and Portland are feeling the loss, impacting local businesses, particularly in the hospitality sector.
New Hampshire: Drop in Cross-Border Tourism
New Hampshire has experienced a 30% decline in Canadian tourism compared to previous years. This downturn is impacting both winter ski resorts and summer lake tourism. Local businesses, from motels to restaurants, are facing difficulties as Quebec and Maritime tourists reduce their cross-border visits.
Nevada: Las Vegas Sees Fewer Visitors
Las Vegas, a major destination for international travelers, experienced an 11% decrease in visitor numbers in June 2025. The reduction in Canadian visitors is partly responsible for this decline. Airlines also reduced flights between Canada and Nevada, signaling lower demand for both leisure and convention travel.
Michigan: Decline in Border Crossings
Michigan’s border crossings saw an 11% overall drop in Canadian arrivals. In March 2025, car travel fell by 18%, with Detroit seeing a 13% decline in Canadian visitors. This trend is impacting key border cities, including Port Huron and Detroit, which rely heavily on tourism for retail and dining.
Montana: Decline in Cross-Border Traffic
Montana experienced a 33-38% drop in Canadian tourism in May and June 2025. Glacier National Park and nearby towns like Kalispell and Whitefish are feeling the strain, as cross-border visitors make up a significant portion of local tourism. Spending has decreased, affecting local businesses reliant on short visits.
California: Decline in Canadian Arrivals
California faced a 25% decline in Canadian arrivals in June 2025. This drop in tourist numbers has impacted cities like San Francisco and Palm Springs, which have long been popular with Canadian travelers. Rising travel costs and currency exchange rates are among the contributing factors to this reduction.
How Labor Day Can Give a Push to the Travel Landscape of America
What is Labor Day Travel?
Labor Day travel refers to the increased travel activity surrounding the Labor Day holiday in the U.S., which marks the unofficial end of summer. It typically sees many Americans taking road trips, flying to various destinations, or heading out on cruises to enjoy the extended weekend. The holiday is known for a surge in domestic and international travel as families, friends, and solo travelers make the most of their last chance for a summer vacation before the fall routine begins.
Recap of 2024’s Labor Day Travel
Labor Day 2024 saw an uptick in domestic travel with many Americans opting to explore local attractions rather than go abroad. According to AAA, domestic round-trip flights were 6% cheaper than the previous year, averaging $720. Hotel rates dropped by 11%, and car rental costs were down by 3%. Popular destinations included Orlando, New York, and Seattle. Despite some increases in international airfare, European destinations like Rome and London remained popular. Gas prices stayed stable, and the overall cost of travel was relatively affordable, making it an attractive option for many.
US is Set to Boost in This Labor Day Travel
Labor Day 2025 is expected to see a boost in travel, with more Americans planning to take advantage of the long weekend. According to AAA, domestic flight costs have decreased by 6% compared to last year, averaging $720 per ticket. Hotel stays are 11% cheaper, and car rental costs have dropped by 3%. The availability of budget-friendly options, along with low gas prices, is expected to encourage more travelers to hit the road. Seattle, Orlando, and New York are among the top domestic destinations for 2025, while Vancouver tops the international list.
How Places Like Seattle, Orlando, New York, Boston, Anchorage and More are Trying to Boost the Travel Sector of America
Cities like Seattle, Washington, Orlando, Florida, New York, Boston, Massachusetts, Anchorage, Alaska, and Atlanta, Georgia are aggressively promoting tourism through targeted marketing campaigns and appealing discounts, aiming to draw more visitors this Labor Day. According to AAA, domestic round-trip flights have decreased by 6%, averaging $720 per ticket, making these destinations even more affordable for travelers. Hotel stays in the U.S. have dropped by 11%, with the average multi-night stay now costing around $495, while car rental costs are down by 3%, averaging $545 for multi-day bookings. These reductions in travel costs have made popular destinations like Seattle, Orlando, and New York more accessible.
In Seattle, Washington, the city’s stunning outdoor landscapes and cultural attractions, such as the Space Needle, Pike Place Market, Chihuly Garden and Glass, and Museum of Pop Culture, are being marketed alongside discounts on flight and car rental packages. Special events like the Seattle International Film Festival and concerts at iconic venues also provide added value for tourists. Similarly, Orlando, Florida continues to attract families with discounted theme park tickets and hotel packages, leveraging the 6% drop in airfare to boost attendance at Walt Disney World, Universal Studios, EPCOT, Magic Kingdom, and SeaWorld.
New York, New York, with its broad range of offerings—from Broadway shows to iconic landmarks like the Statue of Liberty and Empire State Building—is using discounts on theater tickets and multi-attraction passes to increase tourist visits. With flight prices lower than in previous years, many visitors are choosing New York as a last-minute destination for cultural and shopping experiences. Boston, Massachusetts, with its rich history and vibrant local culture, is also benefitting from lower hotel prices, with many travelers taking advantage of the city’s proximity to scenic spots and historic landmarks, like the Freedom Trail, Boston Common, Museum of Fine Arts, Fenway Park, and the New England Aquarium.
Anchorage, Alaska is attracting adventure tourists with discounted packages for excursions such as dog sledding and wildlife tours in Denali National Park. With its vast outdoor attractions, combined with reduced travel costs, Anchorage is capitalizing on the trend toward outdoor exploration. Atlanta, Georgia is also offering enticing deals, with discounts on tickets to attractions like the Georgia Aquarium, the World of Coca-Cola, the Atlanta Botanical Garden, and the Martin Luther King Jr. National Historical Park. With a mix of Southern hospitality and cultural sites, Atlanta is drawing visitors looking to explore both history and modern entertainment.
As AAA data shows, these savings, along with road trip-friendly options in cities like Orlando, Florida, Boston, Massachusetts, and Atlanta, Georgia, are encouraging more Americans to opt for domestic getaways, making this Labor Day a key moment for U.S. tourism recovery. Whether you’re heading to Chicago, Illinois to visit Millennium Park, Navy Pier, and the Art Institute of Chicago, or enjoying the Red Rocks Amphitheatre in Denver, Colorado, or the entertainment capital of the world, Las Vegas, Nevada, where visitors can experience The Strip, the Bellagio Fountains, and Cirque du Soleil shows, the options are endless for a fun, affordable Labor Day weekend.
Ongoing Offers and Discounts for Encouraging Travelers
To boost travel, many U.S. destinations are offering ongoing deals for Labor Day 2025. Airlines, hotels, and car rental companies are providing early booking discounts, making travel more affordable. For example, AAA’s data indicates that hotel rates have dropped by 11%, while car rental costs are 3% lower than last year. Many destinations are offering special packages and discounted entry to attractions, which is encouraging travelers to book early and enjoy a more budget-friendly vacation. These offers are key to maintaining travel momentum, especially as many look for an affordable way to close out the summer season.
Top 10 Domestic Labor Day Destinations to Explore in 2025
| Destination | Nearest Airport | Nearest Metro/Rail Station | Main Tourist Attractions |
|---|---|---|---|
| Seattle, WA | Seattle-Tacoma International (SEA) | King Street Station (Amtrak) | Pike Place Market, Space Needle, Chihuly Garden and Glass, Museum of Pop Culture, Alaskan cruises |
| Orlando, FL | Orlando International Airport (MCO) | Orlando Amtrak Station | Walt Disney World, Universal Studios, EPCOT, Magic Kingdom, SeaWorld |
| New York, NY | John F. Kennedy International (JFK), LaGuardia (LGA), Newark Liberty International (EWR) | Penn Station (Amtrak), Grand Central Terminal | Broadway shows, Central Park, Statue of Liberty, Times Square, Empire State Building |
| Boston, MA | Logan International Airport (BOS) | South Station (Amtrak) | Freedom Trail, Boston Common, Museum of Fine Arts, Fenway Park, New England Aquarium |
| Anchorage, AK | Ted Stevens Anchorage International Airport (ANC) | Anchorage Depot (Alaska Railroad) | Denali National Park, Anchorage Museum, Kincaid Park, Alaska Wildlife Conservation Center |
| Chicago, IL | O’Hare International Airport (ORD), Midway International Airport (MDW) | Union Station (Amtrak) | Millennium Park, Navy Pier, Art Institute of Chicago, Willis Tower Skydeck, Magnificent Mile |
| Atlanta, GA | Hartsfield-Jackson Atlanta International Airport (ATL) | Peachtree Station (Amtrak) | Georgia Aquarium, World of Coca-Cola, Atlanta Botanical Garden, Martin Luther King Jr. National Historical Park |
| Denver, CO | Denver International Airport (DEN) | Union Station (Amtrak) | Denver Botanic Gardens, Denver Art Museum, Union Station, Red Rocks Amphitheatre, Larimer Square |
| Las Vegas, NV | Harry Reid International Airport (LAS) | Las Vegas Amtrak Station | The Strip, Bellagio Fountains, Fremont Street Experience, Hoover Dam, Cirque du Soleil shows |
| Miami, FL | Miami International Airport (MIA) | Miami Amtrak Station | South Beach, Art Deco Historic District, Little Havana, Wynwood Walls, Vizcaya Museum and Gardens |
How Domestic Travel is Thriving as International Tourism Declines
In conclusion, while international tourism to the U.S. faces significant challenges due to factors like rising travel costs, stricter immigration policies, and the strong U.S. dollar, domestic travel is on the rise. Labor Day 2025 presents a golden opportunity for American travelers to take advantage of lower travel costs and explore both iconic cities and hidden gems across the country. Cities like Seattle, Orlando, and New York are not only offering diverse attractions but are also making travel more affordable through discounts on flights, hotels, and car rentals. Whether you’re looking for a cultural getaway, an outdoor adventure, or a theme park vacation, the U.S. offers something for everyone this Labor Day weekend. With ongoing promotions and a steady travel environment, Labor Day is poised to be a strong catalyst for the U.S. travel industry’s recovery and growth.
Tags: Massachusetts Atlanta, New York City, Boston, Orlando, Seattle, wildlife tours, Anchorage, Alaska
