News Summary
Los Angeles is facing a significant downturn in tourism, with a reported 8% drop in international arrivals leading to over 170,000 fewer tourists. Factors such as natural disasters, political issues, and economic pressures are contributing to this decline, impacting local businesses and the hotel industry. While some areas like Long Beach see growth, the overall trend raises concerns about the tourism sector’s recovery, particularly ahead of upcoming events like the World Cup and Summer Olympics.
Los Angeles is experiencing a significant downturn in tourism, as international arrivals dropped by 8% from May to August 2025, equating to over 170,000 fewer global tourists compared to the previous year. This decline has inflicted substantial damage on the region’s economy and image this year, highlighted by a 7.5% decrease in August alone compared to 2024.
Key factors contributing to this downward trend include natural disasters and political issues. The Eaton and Palisades fires in January made headlines and, combined with immigration crackdowns in June, have deterred potential visitors. President Trump’s tariff policies and current geopolitical tensions are also persuading many international tourists to avoid the United States altogether. These circumstances have not only affected arrivals but have had a cascading effect on the local economy.
Hollywood Boulevard has experienced a notable 50% drop in foot traffic, indicating that tourists who do arrive are spending less. Local businesses, including Ride Like A Star, an exotic car rental company, have reported a drastic decline in business due to waning tourist numbers. Attractions near the TCL Chinese Theater have seen reduced visitor numbers, directly impacting sightseeing tours and souvenir sales.
The decline in international tourism is particularly stark among specific demographics. Arrivals from Canada plummeted by 32% during the summer months, a decline linked to tariffs and negative comments from Trump regarding Canada. Additionally, visitors from China, India, Germany, and Australia have also decreased, further exacerbating the situation. In contrast, a surprising development was observed with a 5% increase in arrivals from Mexico, despite ongoing immigration enforcement actions.
Los Angeles airports are reporting decreased passenger traffic, which is affecting the entire tourism ecosystem. California, as a state, saw an 11% decline in visitors to Las Vegas in June, primarily attributed to diminished international tourism from surrounding states like California. The hotel industry in Los Angeles is preparing for reduced room occupancy and event bookings, while rising labor costs are complicating the industry’s operational landscape. The minimum wage for hotel workers is set to rise significantly, further elevating operational costs.
In recent months, Yosemite National Park reported a 50% decrease in bookings leading up to the Memorial Day weekend, mirroring the broader trend of declining visitations. While many theme parks across the United States experienced lower numbers of international visitors, domestic traffic has seen an uptick.
Economic pressures are leading to a decline in schedules at Long Beach airports, with businesses gearing up for the upcoming Olympic Games despite challenges. Local businesses in downtown Los Angeles are struggling with customer numbers and sales, exacerbated by shifting consumer sentiments as fewer people express a desire to travel to the United States amidst political and social unrest.
Financially, the state’s economy benefited from tourism which reached $157.3 billion in 2024. However, the current decline raises concerns over significant potential losses moving forward. The anticipated impact of the upcoming World Cup and Summer Olympics is now under threat due to the ongoing drop in tourism.
The situation calls for a reassessment of LA’s marketing strategies to reassure potential visitors about safety and openness. It is crucial moving forward to adapt and respond to both global economic conditions and public perception regarding travel to the U.S. The overarching concern remains the affective perception of Los Angeles as a travel destination, which could hinder recovery efforts in the tourism sector.
Overall, while there are positive signals in places like Long Beach where tourism revenue has increased, many downtown shops and attractions like Madame Tussauds have reported needing to raise prices due to tariffs and declining sales, signaling the fragility of the current tourism environment in Los Angeles.
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Additional Resources
- Los Angeles Times: Tourism Decline
- Wikipedia: Tourism in the United States
- CBS News: LA International Tourism Decline
- Google Search: Los Angeles tourism decline
- SFGate: Tourism Spending Down in LA
- Google Scholar: Decline in Los Angeles tourism
- Travel and Tour World: US Tourism Slump
- Encyclopedia Britannica: Tourism
- Fodor’s: LA Tourism Struggles
- Google News: Los Angeles tourism struggles
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
