The U.S. hotel industry tourism slump has put pressure on hospitality businesses across the country, as declining international travel reduces occupancy and revenue. However, industry leaders hope the upcoming 2026 FIFA World Cup will revive visitor numbers and boost the sector.
Hotel managers say the drop in foreign tourism has been particularly challenging because international travelers tend to stay longer and spend more, making them crucial for hospitality revenue.
International Visitor Decline Hits U.S. Hospitality
According to U.S. travel data, inbound tourism fell by 5.4% during the first eleven months of 2025, making the United States the only major global destination to record a decline in international visitors.
Meade Atkeson, who manages three hotels for Sonesta International Hotels Corporation, said the downturn has had a noticeable impact on business.
Two of the properties are located in Washington, D.C., while another operates in Miami Beach.
“Just financially, it’s difficult when international travel is down,” Atkeson said, noting that foreign visitors account for nearly one-quarter of business at his hotels.
Canadian and European Travel Declines
Among the most notable drops in international tourism came from Canada, traditionally one of the largest sources of visitors to the United States.
Travel from Canada fell 21.7% compared with 2024, representing roughly four million fewer travelers. Visitor numbers from France also declined by nearly 7%.
Industry observers say geopolitical tensions, trade policies and stricter immigration measures introduced under Donald Trump may have influenced travel decisions among some international visitors.
Las Vegas Hotels Also Feel the Impact
The tourism downturn has also affected major destination cities such as Las Vegas, home to around 150,000 hotel rooms.
Elsa Rodan, a chambermaid at the Bellagio Resort & Casino and a member of UNITE HERE, said some hotels have been forced to lower prices to attract guests.
The slowdown contributed to an estimated $6.7 billion revenue shortfall for Nevada hotels in 2025, according to the American Hotel & Lodging Association.
Union leader Gwen Mills, president of UNITE HERE, warned that declining visitor numbers could threaten jobs in a sector employing more than two million workers nationwide.
2026 World Cup Expected to Boost U.S. Tourism
Despite the challenging year, hospitality leaders believe the 2026 FIFA World Cup could provide a major economic boost.
The tournament will take place from June 11 to July 19, 2026, with 11 U.S. cities hosting matches.
According to Ralph Posner, a spokesperson for the American Hotel & Lodging Association, the tournament’s impact could be enormous.
The event is expected to attract:
- around 7 million stadium spectators
- between 20 million and 30 million tourists
- up to $30 billion in economic activity
Cities not hosting matches may also benefit as visitors extend their trips to explore nearby destinations.
“It’s being equated to having nearly 80 Super Bowls in just over a month,” Posner said.
For example, Las Vegas hopes to attract fans traveling to games in Los Angeles or Kansas City.
Global Events and Conflicts Add Uncertainty
While the World Cup offers optimism, the travel outlook remains uncertain. Analysts warn that geopolitical tensions—including conflict in the Middle East—could disrupt international travel flows.
Despite these concerns, many hoteliers remain hopeful that the global appeal of the 2026 FIFA World Cup will help restore tourism momentum in the United States.
“I hope that things will look better,” Atkeson said, as his Miami Beach property undergoes renovations while his **Washington hotels prepare to welcome World Cup visitors traveling through nearby Philadelphia, one of the host cities.
