Angela Wilson from Mad Beach Watersports told reporters business is down as much as 30% for some of her peers.
However, from a bird’s eye view, the Sunshine State’s tourism economy seems as robust as ever. The state welcomed 41.2 million visitors in the first quarter of the year, which is flat from the same quarter last year, according to Visit Florida data.
The disconnect between these headline figures and the experience of business owners comes into sharper focus when you zoom in on the changing tourism mix, not just in Florida but across the country.
A key factor dragging business for some Gulf Coast tourist destinations is the lack of foreign arrivals — particularly from Canada. Canadian visitors, long a lifeline for Florida’s Gulf Coast, are pulling back as diplomatic tensions rise and border crossings plunge. As the Trump administration ramps up its trade war and diplomatic spat, the so-called “snowbirds” from the north are changing their travel plans.
The number of Canadians taking road trips across the U.S. border dropped 37% year-over-year in July, according to Statistics Canada. Air travel was down 26% over the same period. This was the seventh consecutive month of declining tourism from Canada.
As a result, U.S. tourism is becoming more domestic. Nearly 92% of arrivals in Florida during the first quarter were U.S. residents, according to Visit Florida. This could be why some spots that rely heavily on Canadian snowbirds and international travelers are seeing a steep decline in business while the headline numbers for the state’s visitors remains robust.
However, arrivals are only part of the story. Spending is another key factor that could explain why some Florida businesses are facing a dismal summer.
As U.S. tourism becomes more domestic, it becomes more sensitive to the domestic economy. Unfortunately, the local economy continues to struggle with persistent inflation and the highest number of layoffs since the pandemic, according to Challenger, Gray & Christmas.
American consumers are spending less on big-ticket travel items - such as airfare and lodging - in the first few months of 2025 compared to the previous year, according to the Bank of America.
Nearly 31% of U.S. adults said a combination of their personal financial situation and their gloomy outlook for the national economy is having a negative impact on their travel plans this summer, according to Morning Consult.
Squeezed budgets could explain why some beach towns feel like ghost towns even though overall visitor numbers remain strong.