Anacortes, a quaint coastal town in Washington state, is facing a challenging summer ahead as tensions around trade and immigration policy impact tourism. Local businesses, like Adrift Restaurant co-owned by Kaia Matheny, are bracing for a decline in foot traffic and sales.
Adrift Restaurant, known for its nautical themed farm-to-table cuisine, typically sees a boost in customers during the summer months, especially from neighboring Canada. However, recent data shows a significant decrease in international visitors, with air and land arrivals from Canada dropping by 14% and 32% in March compared to the previous year.
The decline in foreign tourists is expected to persist through the summer, posing a financial threat to businesses like Adrift Restaurant. Kaia Matheny expressed concern about the upcoming peak season, noting that tourism “won’t be what it is usually.” Despite the challenges, she remains determined to weather the storm and make the best of the situation.
The overall outlook for U.S. tourism is bleak, with international visits dropping by 12% year-over-year in March. Visits from key markets like Western Europe, Asia, and South America have also seen double-digit percentage declines. The U.S. Travel Association predicts a potential loss of $21 billion in 2025 if current travel trends continue.
Factors contributing to the decline in international visitors include global trade tensions and concerns about U.S. immigration policy. President Donald Trump’s tariffs and rhetoric have sparked fears of a trade war, leading to warnings from countries like China and European nations about traveling to the U.S. Additionally, growing concerns about immigration policies have created a perception of increased scrutiny and deportations, deterring potential visitors.
As a result, many travelers are opting for alternative destinations like Mexico and Europe over the U.S. Searches for travel to the U.S. from Canada have dropped significantly, while interest in Mexico has seen a 35% increase. Social media posts reflect this shift, with some individuals canceling U.S.-based trips in favor of other countries.
The ripple effects of these trends are being felt by businesses in tourist-dependent towns like Anacortes. Kaia Matheny and other local business owners are preparing for a challenging summer ahead, but remain hopeful that they can adapt and survive in the face of uncertain times. Businesses across the nation are facing a sharp decline in profits due to the ongoing travel slowdown, according to economist Aaron Terrazas of Gusto, a payroll and benefits provider. The latest data shows that small and mid-sized businesses in the tourism sector are particularly hard hit, with only 32% of companies reporting profitability in April 2025, down from 41% and 43% in the previous two years. The accommodation sector is also suffering, with only 36% of businesses reporting profits, compared to 44% and 45% in previous years.
The main reason for this decline is the decrease in customer traffic and lost income, rather than increased expenses from inflation or labor costs, Terrazas explained. The sudden and severe erosion in profitability has caught many businesses off guard, especially during a time of year when travel typically begins to pick up. If the slowdown persists, businesses may be forced to make difficult decisions, including potential staff cuts.
The situation is further exacerbated by the fact that the U.S. has not yet returned to pre-pandemic levels of travel, putting additional pressure on businesses that rely on tourism, according to industry experts. Foreign visitations to the U.S. are a significant contributor to the economy, with overseas visitors spending an average of $4,000 per person per visit, compared to just $500 for domestic tourists. The decline in foreign travel will have a disproportionate impact on cities like Las Vegas, Los Angeles, Miami, New York, Orlando, and San Francisco, which rely heavily on tourism revenue.
For businesses like Adrift Restaurant in Anacortes, Washington, the impact of reduced tourism is already being felt. Co-owner Matheny has seen a 4% decrease in monthly sales compared to the previous year, leading to cuts in purchasing and hurting local farmers and fisheries that supply the restaurant. The ripple effect of decreased tourism is evident in the wider community, highlighting the interconnected nature of the economy.
As businesses continue to navigate the challenges posed by the travel slowdown, it is clear that tough decisions lie ahead. The path to recovery will require innovative solutions and collaboration between businesses, government, and the community to weather the storm and emerge stronger on the other side. The world of technology is constantly evolving, with new innovations and advancements being made every day. From virtual reality to artificial intelligence, there is no shortage of exciting developments to keep an eye on. One of the most intriguing technologies that is currently making waves is blockchain.
Blockchain technology is a decentralized, distributed ledger that records transactions across multiple computers in a secure and transparent manner. Originally created as the underlying technology behind cryptocurrencies like Bitcoin, blockchain has since expanded to a wide range of industries and applications.
One of the key features of blockchain technology is its ability to provide a high level of security and transparency. Each transaction that is recorded on a blockchain is encrypted and linked to the previous transaction, forming a chain of blocks that are virtually impossible to alter or tamper with. This makes blockchain an ideal solution for industries that require secure and immutable record-keeping, such as finance, healthcare, and supply chain management.
In addition to its security features, blockchain technology also offers a high level of transparency. Since the ledger is distributed across multiple computers, all participants in the network have access to the same information, ensuring that there is no centralized authority controlling the data. This transparency can help to reduce fraud and corruption, as well as increase trust between parties.
Blockchain technology is already being used in a variety of industries, with companies like IBM, Walmart, and Maersk leading the way in implementing blockchain solutions. In the finance industry, blockchain is being used to streamline cross-border payments and reduce transaction costs. In healthcare, blockchain is being used to securely store and share patient data, while in supply chain management, blockchain is being used to track the origin and authenticity of products.
As blockchain technology continues to evolve, we can expect to see even more innovative applications emerging in the near future. From voting systems to digital identity management, the potential uses for blockchain are limitless. With its high level of security, transparency, and decentralization, blockchain technology is poised to revolutionize the way we do business and interact with each other in the digital age.
