Impact of U.S. Tourism Decline on Local Economies
Today’s first thought when I woke up was, What will this week hold? U.S. tourism is down. The Trump Tariffs. The Trump Travel Ban. We’re being bombarded from all sides, and it’s tough. Personally, I’m trying to avoid looking at my phone first thing in the morning and last thing at night. We need to take time for ourselves. I even posted about that on Facebook today. We have to get through these difficult times. I believe Monday is a good day to reset, whether you had a bad week and want to move forward, or a great week and want to continue the momentum.
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The U.S. Tourism Industry
However, that’s not what I’m talking about today. I want to discuss something that came up in a conversation with my wife yesterday, and then I read an article about it this morning. My wife met some tourists visiting the national parks. The parks are currently in disarray, and it’s uncertain what they’ll be like in a few months.
There’s a severe staff shortage, which creates numerous problems. Whether it’s maintaining the parks or keeping bears from wandering into campgrounds. These issues stem from staff reductions, essentially firings. But this is what happens when an unelected official from a non-government group like DOGE does a hostile takeover of the federal government. Elon Musk took a chainsaw to the federal government when he needed a scalpel.
But if you think this won’t affect you, you’re wrong. You’ll feel the pinch one way or another. I recently made a YouTube video using Naples and South Florida as a prime example.
Being from Florida, Naples sees a large influx of Canadians towards the end of the year and into spring. They spend four to six months here, playing golf and enjoying retirement. This is a long-standing trend I’ve witnessed in Miami and Naples. Many Canadians also spend time in New York.
The general belief is that this wouldn’t affect you, but it will. That money circulates throughout the economy. Even if you don’t live in Naples, someone you know might be impacted. For example, they might not buy a product from an Amazon seller because they lack the funds. While that’s just one example, the possibilities are endless. It’s all interconnected.
Let me share some information. First, the tourists my wife met, who were from Italy, said, ‘You guys are alone. The whole world is looking at you differently now.’ They were on vacation, visiting the national parks, but found them in disarray. This caused them to change their plans. They were also terrified. Who goes on vacation to be terrified? No one. It defeats the purpose, and that has financial consequences.
Recently, Canadian actress Jasmine Mooney was detained for two weeks and is now boycotting the US, urging others not to visit. New York is already experiencing a drop in Canadian tourism, and there’s already a 23% drop in online searches from Canadians planning to visit the US. That’s a significant amount of money that circulates through the US economy, and it’s estimated to affect us by $64 billion. Now, let’s return to the issue of the Italian tourists.
In speaking with the tourists, my wife mentioned to be careful with the information on their cell phone, but they had already been warned by their own government. They were told to ensure their cell phones contained no anti-Trump content, as ICE might detain them, labeling them as terrorists.
It’s already been documented that this happened. The legality of ICE’s seizing and examining cell phone messages is a separate issue, but consider this: if you fear traveling somewhere, will you spend your money there? Of course not.
We’ve gone from a projected 8.8% increase in tourism to a 5% loss, a 13% swing. If you think that’s insignificant, especially when dealing with billions, try giving up 13% of your paycheck every two weeks and see how it feels. This isolationist approach doesn’t work. No one will do business or travel here.
Tourists Equal Money
I’m from Miami. How will this impact our tourism? South Beach attracts people from around the world. Cruise ships and Orlando’s Disney World are packed with international tourists.
While streamlining government is understandable and no one disagrees with this, it’s the method that is at issue. You have mass firings, then a court order requires to rehire them. This on-again, off-again situation is harmful. A business or government cannot function properly when constantly in disarray
When you reduce a task from ten employees to one, that employee will fall behind. Just like a lawyer with too many cases. We’re seeing this at the federal level. This will cause issues with Social Security and the IRS. Some groups are planning to submit inaccurate tax returns or not file at all, thinking the IRS lacks the staff to catch them. ‘When the cat’s away, the mice will play.’
That’s the situation we are facing. Tourists are avoiding national parks and traveling to the United States. They’re concerned, if not afraid. If tourists stop spending money in the US, it will impact everyone. They fly, rent cars, eat at restaurants, stay in hotels and inns, and travel across the country. Every dollar lost affects your community.
When less money enters your community, local and state governments must either cut staff or raise taxes. That’s why I mentioned Florida’s push for front license plates in another post. It’s a revenue-generating measure. Florida knows it will lose tourism dollars. Why would anyone want to visit the US and fear ICE seizing their phone or being detained for two weeks, even if they’re here legally? Dual citizens are even worried about which passport to use when crossing the border.
Florida farmers are already losing money because Canada is buying oranges from Mexico instead. You can see the problems this creates, but it doesn’t end there. For golf fans, the Ryder Cup is coming up. How much money will we lose on that? People travel from Europe to watch it. Next year, we have FIFA and the Summer Olympics in Los Angeles. These events represent billions of dollars.
So, if it seems clear we’re heading towards a recession, you need to figure out how this applies to your personal situation and adapt. Everyone’s situation is different. If you live in a tourism-dependent area like Miami, you need to find ways to supplement your income.
Similarly, if you live in a transportation hub like Atlanta, fewer flights mean fewer work hours. What side hustle can you pursue to make up for those losses?
Times are going to be tough. Buckle up and get ready. Don’t just listen to me. I’m just one person with a cup of coffee. Do your research. See what economists worldwide are saying and draw your conclusions based on common sense.
For example, the Department of Education provides up to 11% of school district revenue on average nationwide. Some districts might receive more, some less. If they lose 11% of their revenue, how will they make up the difference? Most likely, they’ll cut costs, reduce benefits, and increase taxes.
The Department of Education serves as a perfect example. I don’t have children, and yet, with revenue lost at the county and state levels, it’s likely to affect me. It’s these seemingly small things. So ask yourself: How will this impact me? Because it will.
Alright, take care of yourselves. It’s Monday, so there’s a bit of doom and gloom. But there’s always coffee to make us feel better, and alcohol at night. Take care and remember, chaos will lead to political and financial instability.
Updated April 19, 2025
Per Forbes, the latest figures in tourism decline are 17% from Western Europe, 24% from Central America, and 26% from the Caribbean.
Updated on April 20, 2025.
Air travel can plunge to 70% from Canada. The U.S. Travel Association estimates that a 10% drop in Canadian travel could mean 2.0 million fewer visits, which equals $2.1 billion in lost spending and 14,000 job losses.
Updated on June 4, 2025.
Is U.S. Tourism Declining?
The World Travel and Tourism Council’s report is that the U.S. will have approximately a 22.5% drop in tourism, which equals $12.5 billion. Last year, $585 billion in tax revenue was generated, which amounts to 7% of all government income.
Oxford Economics states that visitation from Canada is down 20.2%, and 5.8% from Western Europe.
The result? The United States is now being boycotted. There’s even an acronym: A.B.U.S.A. “Anything But the U.S.A.”
New data from the Las Vegas Convention and Visitors Authority shows that Las Vegas has experienced three straight months of decline in tourism.
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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.
This podcast was transcribed from an audio recording. The transcription may contain inaccuracies or errors due to the limitations of transcription software and the quality of the audio. I have made every effort to ensure the accuracy of the transcription but cannot guarantee it.
Updated June 22, 2025.
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