Hotel executives voice concern over weakening US inbound travel and uncertain 2026 World Cup demand

Executives across the US hospitality sector are expressing growing concern over the state of international inbound travel to the United States. Many describe the current year as one of the most difficult periods since the pandemic, with international visitation dropping sharply and recovery in key markets stalling.

The mood, according to several senior hotel executives speaking at a recent Lodging Industry Investment Council (LIIC) meeting, is one of frustration and uncertainty. A combination of geopolitical tensions, trade tariffs, and negative sentiment toward the US has dampened interest among foreign visitors. Several markets that were still struggling to reach 2019 levels of arrivals have seen renewed declines this year.

The downturn is being attributed in part to the new administration’s trade policies, including recently imposed tariffs and a stronger “America First” stance that has discouraged leisure travel from some traditional feeder markets. Executives said this environment has created a perception among travellers that the US is a less welcoming destination, leading to an erosion of confidence in the inbound segment.

Declines from key international markets

The steepest declines have been seen in inbound travel from Canada and the Asia-Pacific region. Industry leaders noted that while some year-over-year comparisons show softening demand across the board, the gap becomes far more severe when measured against pre-pandemic benchmarks.

On the West Coast, major urban markets such as San Francisco continue to suffer from the absence of Chinese tourism, with current visitation levels estimated to be only a fraction of what they were in 2019. Similarly, hotel operators in Hawaii and the Pacific Northwest have been hit hard by the lack of Asia-Pacific visitors — a segment that traditionally drove some of the highest average daily rates in those regions.

Across the border, the story is similar. Executives reported that many Canadians are opting to stay home, citing both policy shifts and personal sentiment as reasons for avoiding travel to the United States. The once-strong flow of leisure travellers crossing the border for winter shopping, sports, or cultural events has slowed considerably.

European and South American arrivals have also weakened, though to a lesser extent. Demand from Germany, Brazil, and Argentina has dipped amid weaker currencies and shifting perceptions about the value of US travel compared to other destinations.

Industry observers note that this broad-based decline has created ripple effects across all tiers of the hospitality market — from luxury city hotels to resort properties dependent on foreign spending.

Challenges in rebuilding global sentiment

Hotel executives agree that restoring positive perception of the United States as a travel destination will take time. Many foreign markets, they said, are still recovering from both pandemic-era disruptions and new economic headwinds. In addition, strained diplomatic relationships and visa challenges continue to weigh on demand.

Operators remain cautious about expecting a quick rebound in inbound segments such as China, Japan, and Canada, which together accounted for a significant share of pre-2020 international visitation. Several leaders suggested that it could take multiple years to repair sentiment among travellers who now view the US as less accessible or welcoming than before.

Early warning signs ahead of the 2026 FIFA World Cup

The decline in inbound travel is particularly concerning given the approach of the 2026 FIFA World Cup, which will be co-hosted by the United States, Canada, and Mexico. With the US set to host matches in 11 cities, the event was expected to generate a major tourism surge. However, industry leaders now question whether international arrivals will rebound enough to meet those expectations.

Executives said there is currently no clear signal that inbound bookings for the tournament are strengthening, and many are monitoring developments closely. While the event will undoubtedly bring some uplift, the scale and duration of that boost remain uncertain — particularly for second-tier host cities less known internationally.

Pricing pressure and early rate volatility

Adding to the unease is a trend of premature rate cuts in several host markets. Executives noted that hotels in cities such as Atlanta have already begun lowering rates significantly ahead of the tournament, even though the group stage match schedule will not be released until December.

Some industry leaders have warned that aggressive rate reductions before final match details are known could undercut potential revenue opportunities once demand becomes clearer. Others argue that maintaining strong rate discipline will be critical to maximising returns during the World Cup period, particularly in gateway markets like New York and Los Angeles, which are likely to see more consistent global demand.

By contrast, smaller host cities such as Kansas City or Dallas may experience only brief spikes in occupancy tied directly to specific match days, with most visitors returning quickly to base destinations.

Outlook: cautious realism

Looking ahead, the consensus among hotel executives is cautious at best. Domestic demand remains a stabilising factor, but the loss of high-spending international travellers continues to strain markets that once relied heavily on global tourism.

Many operators are calling for more coordinated efforts between the public and private sectors to promote the US abroad and rebuild confidence among international travellers. Streamlined visa processing, improved border efficiency, and a renewed national marketing campaign are among the recommendations being discussed.

Until those changes take root, hoteliers appear resigned to a slow and uneven recovery. The combination of geopolitical uncertainty, currency fluctuations, and global competition from more accessible destinations means the road back to pre-pandemic levels of inbound travel will likely extend well beyond 2026.

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