The American dream remains very attractive to tourists, but the perfect storm of economic and geopolitical factors has made it too expensive and inconvenient for international tourists. The United States may be the undisputed king of global tourism, but the truth is that it has been experiencing an unexpected slowdown in recent months. Its main tourist destinations, from Orlando’s theme parks to Chicago’s skyscrapers, are seeing fewer and fewer visitors.
Who’s staying at home?
To understand this tourism crisis, it is necessary to differentiate between two types of travelers: Domestic tourism within the country remains very strong, as Americans tend to prefer local vacations (they are cheaper, more confortable, and don’t need to struggle with any language barriers). However, what has plummeted is the rate of international tourism.
This international tourism is the engine of revenue and high spending in the most popular cities. These are visitors who save for a long time and, once they arrive in the United States, take advantage of the opportunity to enjoy everything they have been longing for. The USA is no longer a desirable holiday destination, even for wealthy travellers.
The Wallet Crisis
There are several economic factors that make travel twice as expensive for Canadian, European, and Asian tourists: on the one hand, high inflation in the United States has raised the prices of accommodation, meals, and attraction tickets; secondly, and more importantly, all international currencies have been devalued, meaning that tourists will have to spend more money to book a hotel. Let’s not kid ourselves; the US dollar has also devalued immensely over the last five years, as can be seen in the rise in the price of an ounce of gold. However, it is the currency that has devalued the least, so foreign visitors will have to pay more than local visitors.
This phenomenon has created a very budget-conscious traveler (international travelers do not usually open credit cards, but pay for everything in advance). This is why, instead of going to the United States, they decide to go to destinations where their money goes further. Instead of going to Florida or New York, they choose Italy, Greece, or Asian countries, which are offering better “value for money.”
The decline in tourism
The figures for the states most affected by this decline in tourism are worrying: Florida, the country’s main destination, is feeling the impact of the drop in Canadian and European tourism, which is vital for its theme parks. The state reported an overall decline of 8.7% in arrivals (17.7 million from January to August), and August showed a stagnation in visitor numbers.
Michigan is another state that is also suffering from the same trend. As it relies heavily on land traffic from Canada, it suffered the largest decline reported in the group studied. Michigan experienced a sharp decline of -20.8% in arrivals (falling to 8.4 million visitors), with global economic uncertainty as a key factor.
Other states that depend on tourism are also struggling. This is the case in Nevada, which has suffered a drop of 11.3%, directly impacting Las Vegas. Even the giant state of Texas, which seems to have less need for tourism, saw arrivals decline by 8.6%.
There is a growing sense of unease among tourists from key markets such as Europe, Mexico, and Japan. Faced with news of strict immigration controls and a perception of hostility at customs, many travelers are choosing to avoid the United States altogether. Political uncertainty does not help, and many feel that the country is less welcoming. Faced with the possibility of being detained and questioned upon arrival, tourists prefer to choose destinations with simpler entry procedures. Unless they like roleplay (no shame in that), few people will be willing to spend their few vacation days dealing with the TSA. So off they go to Greece or the Canary Islands.