International Travel to U.S. Shows Uneven Recovery in 2025

WASHINGTON — International inbound travel to the United States showed a mixed recovery in the first half of the year, according to new data released by the U.S. Travel Association.

Travel from Canada, historically the top international source market, declined sharply by nearly 19% compared to the same period in 2024. This drop contributed to a 3.4% overall decrease in international visits, translating into an estimated $1.9 billion loss in travel-related spending.

The month of June was particularly affected, with Canadian visitation falling more than 26%, the report said.

In contrast, Mexico posted strong growth. Mexican visitation to the U.S. rose 12.5% in the first half of 2025, with June alone up 14.8% year-over-year. The total number of visits from Mexico reached approximately 940,000, generating just under $500 million in traveler spending.

In a statement to CNBC, the U.S. Travel Association noted, “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.”

Major travel brands such as Hilton, Wyndham, and Travel + Leisure Co. are closely monitoring inbound traffic shifts as they prepare to report earnings next week.

Tourism-dependent cities like Las Vegas are also seeing reduced visitation from both Canada and Mexico, which may reflect in quarterly performance reports for casinos such as Caesars Entertainment, MGM Resorts, Boyd Gaming, and Red Rock Resorts.

The sector also faces challenges from recent U.S. policy changes. A significant reduction in federal marketing budgets and increased visa fees under the Trump administration’s latest tax-and-spending law may further slow international interest. Industry experts warn that these cuts could hamper U.S. tourism just as the country prepares to host the FIFA World Cup in 2026.