July 22, 2025
Essence Fest’s visitor drop in 2025 points to a broader hit to the tourism industry.
Essence Fest 2025 saw a decline in hotel and short-term rental bookings, which industry experts attribute to broader macroeconomic challenges beyond New Orleans.
Held in New Orleans over the Fourth of July weekend, visitor turnout for this year’s four-day Essence Festival of Culture dropped noticeably from last year, NOLA reported. Hotel bookings were down about 15% from Friday through Sunday, and short-term rental stays fell 12% to 17% each night from Thursday through Sunday, compared to 2024.
Local tourism experts say it’s still unclear whether the decline in visitors stems from issues specific to Essence Fest or from broader challenges in the travel industry. Some point to a natural cooldown after last year’s 30th anniversary celebration, when hotel and short-term rental bookings increased by more than 50% on key days.
“Certainly Essence was off this year,” said David Piscola, general manager of the Hilton New Orleans Riverside. “At the Hilton, we did not see the demand nor ultimately the volume we have seen in years past. It was still a very busy weekend and a great celebration but softer than normal.”
Piscola noted that while the Hilton experienced a noticeable dip over the Fourth of July weekend, it still ranked as one of the hotel’s busiest weekends of the summer. The decline has industry experts wondering if New Orleans is beginning to feel the ripple effects of a looming economic slowdown, compounded by a dip in international tourism due to the federal government’s stricter immigration policies.
“I don’t have a single reason for the softness,” said Jim Cook, general manager of the Sheraton New Orleans, one of the biggest downtown hotels. “It’s gotten harder to determine. But based on the visitors we had, the spending behavior is similar to past years, so I wouldn’t attribute it to macroeconomics without data.”
Data revealed a slowdown in tourism spending following the post-pandemic surge, with Americans slashing summer vacation budgets by roughly 25% compared to last year. The dip had been looming, as federal data from early 2025 signaled fewer international arrivals, particularly from Canada and Europe, and a decline in visitor spending, driven by a mix of economic strains and political tensions.
“These shifts in consumer spending, such as increased competition from alternative accommodation like short-term rentals, may have contributed to the weaker hotel performance for this year’s Essence event,” said Colin Sherman, an analyst at CoStar.
Sherman pointed to data from Tourism Economics, which showed consumer confidence dipping across several areas, including job outlook and business sentiment, prompting travelers to tighten their budgets and opt for more cautious spending on trips. The outlook is expected to worsen, with the travel industry bracing for an even softer turnout heading into late 2025 and early 2026.
“I believe the second half of the year, including July, will prove more difficult for hospitality, not just in New Orleans but nationwide,” Piscola said. “Most major research organizations, such as Smith Travel Research and LARK, predict a much weaker second half, primarily due to macro economic issues beyond New Orleans.”
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