The United States is projected to experience a significant decline in international traveler spending this year, with forecasts indicating a $12.5 billion loss, according to a new report from the World Travel Tourism Council (WTTC). This anticipated downturn represents a considerable economic challenge for the U.S. tourism sector and stands in contrast to the prevailing trend of recovery and growth in international visitor numbers seen in many other parts of the world.

The WTTC's latest Economic Impact Research provides a detailed look at the expected decrease. International visitor spending in the U.S. is projected to fall below $169 billion in 2025, a notable drop from the $181 billion spent in 2024. This figure also signifies a substantial 22.5% reduction compared to the pre-pandemic peak of $217.4 billion recorded in 2019. The report highlights that the U.S. is an exception among the 184 economies analyzed by the WTTC and Oxford Economics, as it is the only one forecast to see a decline in international visitor spending this year.

Economic Impact Projected

The projected $12.5 billion loss in international tourism spending has far-reaching implications for the U.S. economy, affecting various industries and the nation’s overall financial health.

• Loss of High-Value Spending: International tourists are particularly valuable to the U.S. economy due to their significantly higher spending per trip compared to domestic travelers. According to the U.S. Travel Association, foreign travelers spend an average of $4,000 per visit, which is eight times more than the average spending by a domestic traveler. This higher spending supports a wide range of businesses, including accommodation providers, restaurants, retail outlets, entertainment venues, and transportation services. The projected reduction directly translates to a loss of this crucial high-value revenue stream for these businesses.
• Contribution to the Broader Economy: While domestic tourism constitutes the largest portion of the U.S. travel and tourism market, which contributed a substantial $2.36 trillion to the nation’s economy in 2024, international tourism is an essential component that drives additional economic activity and generates revenue that might not otherwise be realized. It directly supports jobs within the tourism industry and has significant ripple effects throughout the economy via supply chains and related sectors. The projected loss in international spending signifies a weakening of this important economic driver.

Factors Behind the Downturn

The WTTC’s report identifies several key factors contributing to the anticipated decrease in international visitors. These issues collectively create a less favorable environment for individuals considering the United States as a travel destination.

• Negative Sentiment: A significant reason cited is the negative sentiment prevailing among some international travelers. This feeling has fostered a perception that the U.S. is less welcoming or potentially unsafe for foreign visitors. Such sentiment can heavily influence travel decisions, causing potential tourists to look elsewhere.
• Border and Visa Uncertainty: Increased scrutiny and reported instances of detentions at borders, coupled with perceived confusion or stricter requirements surrounding visa and entry processes, are acting as notable deterrents for many potential international travelers. The uncertainty and potential for difficulties or unpredictable situations upon arrival can lead individuals to choose destinations with simpler, more transparent, and predictable entry procedures. This is a recurring concern highlighted in global tourism news today.
• Decline from Key Markets: The report specifically highlights a decrease in travelers from traditionally strong source markets, including neighboring countries like Canada and Mexico. This decline is attributed, in part, to factors such as immigration crackdowns, tariffs, and politically charged statements that have strained relationships and made cross-border travel less attractive for some individuals from these vital markets. Data from the U.S. Department of Commerce showing significant drops in March arrivals from countries like Canada, Britain, and South Korea supports this observation.

This combination of factors is causing the U.S. trend to diverge from the pattern seen in many other countries globally. While numerous nations are actively working to relax visa requirements and implement measures to attract more international tourists to stimulate their economies, the U.S. approach is perceived by some as creating increased barriers, effectively signaling a less open stance towards foreign visitors.

Planning Your Trip to the U.S.

For individuals who are currently planning or considering a trip to the United States, this forecast of declining international tourism could have some practical, though potentially localized, impacts on their travel arrangements and overall experience.

• Accommodation Availability: A decrease in the overall number of international tourists, particularly in major cities and popular tourist destinations that traditionally attract a large volume of foreign visitors, could potentially lead to greater availability of hotel rooms and other types of accommodations. Reduced demand from this segment might ease the pressure on bookings, especially during what would typically be peak travel periods in certain locations. This could offer more options and potentially better value for travelers.
• Potential Market Adjustments: While it is not guaranteed to result in widespread price reductions across the board, the softer international demand could potentially influence pricing strategies within the hospitality and travel sectors in specific markets. Travelers might find varying degrees of impact depending on their chosen destination and how heavily it relies on foreign visitors. Staying informed about specific destination trends and booking in advance is still advisable, but there might be slightly more flexibility or opportunities for deals in certain areas compared to periods of peak international demand.

The WTTC emphasizes that, without urgent and coordinated action to restore international traveler confidence and address the underlying causes of the decline, the U.S. tourism sector’s recovery to pre-pandemic levels could be a prolonged process. Some analyses suggest it could take several years, potentially not returning to 2019 figures until 2030, if the current trends are not reversed. Addressing this situation will require focused efforts to enhance the country’s image as a welcoming destination and streamline the entry process for legitimate visitors, recognizing the significant economic stakes involved for the nation's economy and the global tourism landscape.