Brazil, Mexico Join Canada, Paraguay, Ecuador, Chile, and Uruguay in Powering a 2025 Tourism Boom Across Americas and Caribbean, While US Struggles With a Steep Travel Decline: New Report

Brazil, Mexico, Canada, Paraguay, Ecuador, Chile, and Uruguay are powering a tourism boom across the Americas and Caribbean in 2025, as surging international demand, affordable pricing, improved air access, and a renewed interest in nature and cultural travel drive strong early-year growth across the region. Each of these countries has reported major increases in visitor arrivals and tourism revenue, with Brazil setting new national records, Chile seeing over 50% growth compared to last year, and Mexico’s air arrivals rising despite regional slowdowns in the Caribbean. Meanwhile, the United States is facing a steep travel decline, with international arrivals falling sharply due to high travel costs, political tensions, negative foreign sentiment, and a shift in traveler preferences toward more welcoming and cost-effective destinations in Latin America and beyond.

Brazil is leading the charge with its most successful tourism quarter on record. From January through March 2025, the country welcomed an incredible 3.74 million international visitors, marking a 47.8% jump over the same period last year. March alone saw 929,096 arrivals, an increase of 25.5% compared to March 2024. In terms of revenue, Brazil’s inbound tourism generated $1.63 billion in Q1—the highest quarterly tourism income the country has seen since the 1970s.

Driving the growth are international events, strong cultural tourism campaigns, and growing demand for Brazil’s ecological experiences, from the Amazon to Rio’s urban coastlines.

Mexico also reported strong tourism gains—at least on the surface. The country registered 6.1 million international air arrivals in the first three months of 2025, reflecting a 3.5% year-over-year increase. Visitors from the United States alone numbered around 3.9 million (+5.1%), while Canadian travelers jumped 13% and Argentine tourists soared by 32.5%.

However, not all regions within Mexico are celebrating. The Mexican Caribbean, which includes Cancun, Playa del Carmen, and Tulum, saw a 15% drop in tourism reservations in Q1. New data from Mexico’s National Institute of Statistics and Geography (INEGI) shows this decline has sparked urgent discussions among hoteliers and tourism officials, who worry that high prices, safety concerns, and overtourism fatigue are turning travelers away from the region’s iconic beach resorts.

Across South America, other countries are also seeing impressive gains. Chile recorded 648,904 international arrivals in February, up 54.8% year-over-year. Over the Southern Hemisphere summer period (Dec–Feb), the country welcomed 2.14 million tourists, a 57% increase from the previous year and 32% higher than pre-pandemic levels in 2019.

Paraguay is one of the fastest-growing tourism stories this year, posting a 53% surge in international arrivals, according to the latest UNWTO data. Ecuador followed with a solid 17% increase in visitors, thanks to demand for nature-based travel and Galápagos-bound trips.

Uruguay, meanwhile, enjoyed a 10.45% rise in tourist arrivals in January 2025, with 572,699 international visitors entering the country. Many of them came from Argentina, underscoring Uruguay’s growing popularity as a summer destination in the Southern Cone.

Canada opened 2025 with a promising uptick in travel. January saw 4.6 million international arrivals, up 1.9% year-over-year, with U.S. land crossings rising by over 23%. Non-resident air arrivals also improved, increasing by 4.3%.

However, that early momentum faded by April. Total entries into Canada that month fell by 15.2% compared to April 2024, with air arrivals from the U.S. dropping by 5.5% and car trips down 10.7%. Analysts point to a mix of harsh weather, high airfare costs, and slower global demand for spring travel.

While many of its neighbors are celebrating, the United States is dealing with a troubling tourism downturn. According to multiple sources, the country saw a 14% decline in international arrivals in March 2025 compared to the same month in 2024. Arrivals from Canada plunged by 26%, air travel from Europe and Asia dropped 14–17%, and visits from South America fell 10%.

These declines are starting to take a real toll on the U.S. travel economy. The World Travel & Tourism Council (WTTC) projects that the U.S. could lose $12.5 billion in international visitor spending by the end of 2025, dropping from $181 billion to $169 billion. Domestic travelers are still booking vacations, but spending is down—airfare purchases fell 6% and hotel stays dropped 2.5% year-over-year in Q1, according to Bank of America.

Looking ahead, summer travel bookings are down too. Forecasts show flight reservations down 10%, and hotel bookings down nearly 8%, suggesting the trend may continue into the peak season.

Industry analysts point to several causes: political instability, rising costs, a stronger dollar, and concerns over entry requirements have made many foreign visitors hesitant to plan U.S. trips. Some travelers also cited discomfort with America’s current immigration stance and security issues, particularly in major cities.

Brazil, Mexico, Canada, Paraguay, Ecuador, Chile, and Uruguay are driving a tourism boom across the Americas and Caribbean in 2025 due to rising global demand, better air connectivity, and interest in affordable cultural and nature-based travel, while the United States faces a sharp decline as high costs, safety concerns, and waning international appeal push visitors elsewhere.

The tourism outlook for 2025 paints a sharply divided picture across the Americas. On one side, South America and parts of Central and North America are booming, with countries like Brazil, Chile, Paraguay, Ecuador, Uruguay, and even parts of Mexico and Canada enjoying early-year momentum.

On the other, the United States is slipping, seeing fewer foreign visitors and declining travel spend. While the reasons vary, the result is clear: travelers in early 2025 are heading south—literally.

If the current pace continues, this year could be a defining moment for tourism across the region—where Latin America cements its role as a rising global destination, and the United States is forced to reckon with its waning allure in a competitive international market.