US Tourism Is Still Dropping. And the World Cup Isn't Saving the Day.

2026 was supposed to be an incredible year for US tourism, {{contact.first_name}}.

But the industry is in a prolonged slump. US tourism fell by more than 5% last year while the rest of the world grew. America is now the only large advanced economy where tourism is shrinking.

Higher costs, tighter border checks, and shifting global perceptions are keeping international visitors away. Even Mexico has overtaken Canada as the top source of travelers, a shift we haven't seen in decades.

                                                                                                                             READ THE FULL UPDATE                                                                                                                                                                                                        

Is the Slump Really as Bad as the Headlines Say?

Yes. Overseas arrivals have now declined for nine straight months. And international tourist spending was already predicted to drop by an estimated $12.5 billion last year.

In January 2026, overseas arrivals were down roughly 3.5% to 4.8% compared to January 2025.  And flight bookings from Europe for summer 2026 are down more than 14%. Canuck's are pulling back too, Canadian visits dropped nearly 26% in 2025.

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Will the 2026 FIFA World Cup Turn Things Around?

The World Cup was supposed to bring 1.24 million international visitors. Tourism Economics projected a 3.7% rebound in inbound travel for 2026, with nearly one-third tied to the event.

But early data suggest that may have been too optimistic. Flight bookings are still down, and hospitality groups reported lackluster demand for FIFA hotel room blocks. Hotels reserved rooms two years ago, but many are still empty.

The Tourism Slump won't be reversed by the World Cup. ADR and occupancy will still rise, but that boost may be smaller than expected.

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What This Means for Hosts

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STRs in gateway cities like New York, LA, Miami, and Orlando will feel the squeeze first. Hotels may compete harder for domestic guests and drop prices, creating more competition for hosts. If you rely on international travelers for bookings, start diversifying now.

What you can do:

  •  Target drive-to markets within a few hours of major cities.
  •  Add amenities that turn your stay into a destination
     (game rooms, saunas, outdoor dining and entertainment, etc).
  •  Use keywords for local events and festivals in your website and listings.
  •  Offer moderate cancellation policies to capture last-minute local bookers.

👉 Read our full article to learn more about what's driving the slump and more strategies to weather the storm and attract more domestic travelers right now.

Cheers,

The Host Camp Team

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