Report: LA is dying as Hollywood businesses say tourism has cratered
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Los Angeles 's iconic Hollywood district has seen tourism numbers fall off a cliff, sparking fears for the future of the beleaguered City of Angels. Visit California revealed tourist numbers slumped by 10 percent this summer, compared to the same period of 2024. And businesses on Hollywood boulevard said customer numbers had plunged by up to 50 percent, raising the prospect of the neighborhood that is a byword for movies and showbusiness entering into a terminal decline.

Tourism in the famous Hollywood region of Los Angeles has plummeted, causing concern about its future. According to Visit California, there was a 10 percent decrease in tourist numbers this summer compared to the same time in 2024. Local businesses on Hollywood Boulevard reported a drop in customers by up to 50 percent, leading to fears of long-term decline in this showbiz hub.

Multiple problems have been blamed for the downturn, according to the Los Angeles Times . Vast swathes of LA were decimated by wildfires in January. While Hollywood survived unscathed, the city has struggled to shake-off the perception that it is still filled with smoking ruins. Riots against Immigration and Customs Enforcement (ICE) in June saw dystopian images of left-wing agitators torching self-driving cars beamed across the world.

Several issues are believed to contribute to this decline, as reported by the Los Angeles Times. In January, large parts of LA were hit by wildfires. Although Hollywood was not affected directly, the city has struggled to counteract the image of devastation. Additionally, the city’s reputation took a hit after June riots against Immigration and Customs Enforcement (ICE), when images of chaos were broadcast worldwide.

Those riots were confined to Downtown LA, a few miles from Hollywood. But the damage to the entire city's reputation was severe. President Trump's tariffs and threats to make Canada the 51st US state have also had a huge impact, with Canuck visitors particularly important to the local economy. Salim Osman, who works for exotic car rental company Ride Like A Star, said last year business was booming, but 2025 is a different story.

Though the riots occurred in Downtown LA, miles away from Hollywood, the city’s overall image suffered. President Trump’s tariffs and his suggestion of incorporating Canada as another US state have also adversely impacted tourism, with Canadian visitors being significantly important to the economy. Salim Osman, an employee at exotic car rental company Ride Like A Star, noted a drastic change from the previous year’s busy business.

'It used to be shoulder to shoulder out here,' he said. 'It's a lot harder for people to come here, or they're afraid of what's going on here, so they just don't come.' Souvenir shop owners said they were forced to raise prices because of tariffs and a decline in sales. 'Los Angeles is California's primary international gateway; the impacts are felt statewide,' Adam Burke, president of Los Angeles Tourism, told the newspaper. 'Looking ahead, long-term recovery will depend on global economic conditions and how the US is perceived abroad.'

‘It used to be crowded here,’ said Osman. ‘Now, it’s harder for people to visit, or they’re scared of the situation, so they stay away.’ Souvenir shopkeepers have been forced to increase prices due to tariffs and falling sales. Adam Burke, president of Los Angeles Tourism, mentioned that the impacts on Los Angeles, California’s main international gateway, are being felt across the state. He added that long-term recovery depends on global economic factors and the international perception of the US.

In particular, Trump's attacks on Canada 's economy and threats to make it the 51st state have infuriated Canadians, causing huge swaths of them to cancel their US vacations. Visitors from Canada to Los Angles fell around 30 percent in June and July, according to the report. 'We've hurt our Canadian Friends with actions that the administration has taken. It's understandable,' Palm Springs Mayor Ron deHarte said.

Trump’s criticisms of Canada’s economy and the proposal to make it the 51st state have angered Canadians, leading to many canceling their US trips. Canadian visits to Los Angeles dropped 30 percent in June and July, according to the report. ‘We’ve upset our Canadian neighbors with the administration’s actions. It’s understandable,’ said Palm Springs Mayor Ron deHarte.

'We don't know how long they won't want to travel to the States, but we're hopeful that it is short-term.' Cynthia Guidry, the director of the Long Beach Airport, told the newspaper that reduced airline schedules and rising costs have impacted traffic and she is trying to find ways to improve business before the Olympics. 'We're focused on attracting new service, growing non-aeronautical revenue and managing expenses to stay resilient,' she said.

‘We’re uncertain how long their reluctance to visit the States will last, but we hope it’s temporary.’ Cynthia Guidry, Long Beach Airport’s director, acknowledged that reduced flights and rising costs have affected traffic, and she is exploring ways to boost business ahead of the Olympics. ‘We’re working on attracting new services, increasing non-aeronautical revenue, and managing expenses to remain resilient,’ she explained.

Elsewhere in California, things are similarly grim. Yosemite National Park reported a decrease of 50 percent in bookings ahead of Memorial Day weekend. Dennis Speigel, president of consulting firm International Theme Park Services, said this year has been difficult due to fewer international visitors and more people looking to save money.

Elsewhere in California, things are similarly grim. Yosemite National Park reported a decrease of 50 percent in bookings ahead of Memorial Day weekend. Dennis Speigel, president of consulting firm International Theme Park Services, said this year has been difficult due to fewer international visitors and more people looking to save money.

'People in the locales where the parks are stayed in their areas,' he told the LA Times, adding more people are spending less on travel because 'the general economy, the media, the tariffs, the confusion and the uncertainty that came with that.' The latest tourism industry numbers from Los Angeles show it could be on the same collision course as dying Las Vegas.

‘People in the locales where the parks are stayed in their areas,’ he told the LA Times, adding more people are spending less on travel because ‘the general economy, the media, the tariffs, the confusion and the uncertainty that came with that.’ The latest tourism industry numbers from Los Angeles show it could be on the same collision course as dying Las Vegas.

Sin City has struggled throughout 2025 amid skyrocketing prices, falling rates of hotel stays and a lack of tourists to the Nevada party hub. August recorded 4.56million passengers - an almost 6 percent drop compared to the same month last year, figures from Harry Reid International Airport shows.

Sin City has struggled throughout 2025 amid skyrocketing prices, falling rates of hotel stays and a lack of tourists to the Nevada party hub. August recorded 4.56million passengers – an almost 6 percent drop compared to the same month last year, figures from Harry Reid International Airport shows.

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