Anacortes, a small town on the coast of Washington state, is facing a drop in tourism that local businesses, such as Kaia Matheny’s Adrift Restaurant, are bracing for. The coastal town, typically busy with tourists during summer, is seeing fewer visitors, particularly from Canada, the U.S.’s largest source of international tourists. Sales at Adrift Restaurant, a farm-to-table eatery in downtown Anacortes, have fallen as Canadian visits declined significantly, with air arrivals dropping 14% and land arrivals dropping 32% in March 2024.
This downturn is expected to persist through the summer, impacting many businesses in tourist-dependent towns like Anacortes. Matheny expressed concerns about the upcoming peak season, saying that tourism this summer “won’t be what it usually is.” As businesses prepare for this slowdown, many are trying to adapt and manage expectations, even as tourism remains a significant U.S. export, contributing over $180 billion in 2024. However, international visits to the U.S. dropped by 12% in March 2024 compared to the previous year.
The decline is not just limited to Canada. Travel from other key markets, including Western Europe, Asia, and South America, has also fallen by double digits. Data indicates that bookings for overseas travel to the U.S. are down 10% for the summer, with even steeper declines from Canada and Mexico. This shift is creating a worrying outlook for U.S. tourism, with projections that the loss of international visitors could cost the economy up to $21 billion in 2025 if trends continue.
Experts attribute this decline to a combination of factors, including heightened trade tensions, immigration concerns, and changes in U.S. policy. Trade wars, such as those initiated by the U.S. with China, have made the country a less welcoming destination. Additionally, several European countries and China have issued travel advisories, citing concerns about security and border issues. As international tourism weakens, domestic travel is not expected to fully compensate for the losses, with the “revenge travel” trend among Americans already subsiding. While the U.S. tourism industry is not facing a global crisis, 2024 and 2025 are shaping up to be challenging years.
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