Navigation

Tariffs Are Leading to Dip in Tourism Across U.S., Here’s What That Means for Dallas

European airlines report a decrease in U.S.-bound flight bookings, even as DFW Airport expands its international offerings.
Image: Early data shows a steep dropoff in the number of foreign visitors to the United States. Dallas stands to lose a lot.
Early data shows a steep dropoff in the number of foreign visitors to the United States. Dallas stands to lose a lot. Adobe Stock
Share this:
Carbonatix Pre-Player Loader

Audio By Carbonatix

Rising airfares, tariff uncertainty and new sweeping political policies could be contributing to a downturn in foreign tourism to the United States this summer, especially among visitors from our northern and southern neighbors.

And it’s Canadians and Mexicans who, not so conveniently, make up the lion's share of Texas’ foreign visitors.

According to the Office of the Governor’s Economic Development and Tourism, 2023 was the first year Texas exceeded pre-COVID tourism numbers from Canada, with 582,000 of our northern friends making the trip to the Lone Star State. Canadian tourism accounted for nearly 9% of Texas’ foreign visitors that year. However, Canada’s contribution to the Texas tourism market far trails that of our southern neighbor. In 2023, 4.2 million visitors came to Texas from Mexico.

This summer, though, early data shows travelers from both countries are turning away from the United States because of sweeping import tariffs and hardline immigration policies.

Last month, New York City officials slashed their projected number of foreign tourists for the year by 17%, citing President Donald Trump’s policies as being unpopular with potential visitors. In Chicago, international arrivals are down 9% so far in 2025.

While Texas officials have been tight-lipped on any hits the tourism industry might be taking, and Dallas officials will not have reports on official tourism numbers until the end of the fiscal year, Jennifer Walker, chief marketing officer with Visit Dallas, described the international tourism market as “incredibly important for the city of Dallas.”

“Consider, for example, that international visitors within Dallas city limits totaled 1.3 million in 2023, representing 8.4% of all Dallas visitors and roughly 14% of all hotel room nights sold in the city,” Walker said. “International visitors also stay twice as long and spend four to six times as much as domestic visitors, yielding significant returns.”

What the Numbers Say

Texas Travel research shows that in 2023, foreign visitors spent more than $7.3 billion in Dallas alone. If early projections are accurate, D-Town has a lot to lose. And, keep in mind, that number has only just bounced back to pre-COVID numbers in recent years.

According to data from the U.S. Department of Commerce, the first quarter of 2025 saw a 7.2% drop in Mexican visitors to the U.S. compared with the first quarter of 2024. Canadian tourism fell by 5% in the same period. And if last month’s survey by the market research firm Leger, which found nearly half of Canadian travelers feel “less likely” to visit the U.S. in 2025 than they did last year, is to be believed, it's expected to get worse.

While Mexican officials have cited policies regarding visas and deportations as a leading factor in the decrease in tourism, market experts speculate that Canadian tourists’ dip in travel is a response to the stringent tariffs levied against the country. According to a March survey by NielsenIQ, a third of Canadians have reported boycotting U.S.-made products regardless of price. During professional hockey games played on Canadian ice, crowds have erupted into boos during the playing of the “Star-Spangled Banner.”

Now they’re flat out refusing to visit, eh?

"Canadians feel disrespected, and that's very challenging to them because we have always been such loyal, loyal partners," Catherine Prather, president of the U.S. National Tour Association, told NPR.

But bad blood may not be the only factor contributing to few visitors coming to town. Rising flight costs and inflation have also been linked to the decrease in tourism, a wrench that American travelers have reported has been thrown into their summer vacation plans.

The Bright Side for Dallas

Even if foreign tourism drops this year, Dallas officials have promised an enormous boost next year during the FIFA World Cup.

Walker from Visit Dallas said the nine matches that will be held at AT&T Stadium next summer are expected to bring in 3.8 million visitors across the North Texas region. Right now, officials are expecting that to work out to a $1.5 to $2.1 billion economic impact.

Beyond the games, Walker said a growing number of international flight options out of DFW Airport should help keep North Texas as one of the most accessible locations on foreign visitors’ travel lists. In the last year, the airport has introduced nonstop flights to Nadi, Fiji; Hong Kong; Venice; Rio de Janeiro; and Melbourne.