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The United States is expected to lose approximately $12.5 billion in revenue from international tourism this year, according to a new report by the World Travel and Tourism Council (WTTC) and Oxford Economics. The study warns that the U.S. is the only major destination projected to experience a decline in foreign tourist spending in 2025.
Spending by international visitors is estimated to drop to $181 billion, which is 22.5% below the peak from a decade ago. The WTTC, an organization representing top travel and hospitality companies, said this trend poses a “direct blow to the U.S. economy,” impacting jobs, small businesses, and local communities across the country.
WTTC President Julia Simpson called on the U.S. government to take action, stating, “While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign.” She linked the decline to tightening immigration policies, visa concerns, and a rise in negative perceptions abroad, particularly under the Trump administration’s stricter border policies and international rhetoric.
Simpson also cited growing anxiety among foreign tourists over visa issues and fears of accidental legal trouble during travel, saying many now feel apprehensive about visiting the U.S.
The report referenced U.S. Department of Commerce data showing significant drops in arrivals as early as March 2020 from key countries such as Britain and South Korea (down nearly 15%), and even steeper declines from Germany, Ireland, and Spain (over 20%). Early summer bookings from Canada were also down by 20%.
The WTTC said this was more than a temporary dip. “It’s a wake-up call. The U.S. is welcoming fewer visitors from both neighboring and distant countries — a clear sign its global appeal is weakening.”
Adding to the challenge, more U.S. residents are choosing to travel abroad, further exacerbating the domestic tourism slowdown.
In 2024, the travel and tourism sector contributed $2.6 trillion to the U.S. economy, supported over 20 million jobs, and generated $585 billion in tax revenue — nearly 7% of total national revenue. The current trajectory could significantly undermine that contribution if policy and perception issues are not addressed.
