A sharp downturn in international tourism is on course to drain $12.5 billion from the U.S. economy this year, and experts are pointing to policy missteps and inaction rooted in the Donald Trump administration as a driving cause.
According to newly released findings from the World Travel & Tourism Council (WTTC), international visitor spending in the United States is forecast to fall to just under $169 billion in 2025, down from $181 billion in 2024. This $12.5 billion drop marks a 22.5% decline from pre-pandemic peaks, making the U.S. the only country among 184 global economies analyzed by WTTC and Oxford Economics projected to experience a contraction in inbound tourism this year.
While nations across the globe are fast-tracking recovery plans to revive international travel, the U.S., despite boasting the largest Travel & Tourism sector in the world, is watching its foreign visitor base shrink. “This is a wake-up call for the U.S. government,” said Julia Simpson, WTTC President & CEO. “The world’s biggest Travel & Tourism economy is heading in the wrong direction, not because of a lack of demand, but because of a failure to act. While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign.”
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Domestically, Americans have filled the void to some extent, with nearly 90% of tourism spending in 2024 coming from local travelers. However, this inward momentum conceals a deeper vulnerability: the stagnation of international growth. “Without urgent action to restore international traveller confidence,” Simpson warned, “it could take several years for the U.S. just to return to pre-pandemic levels of international visitor spend, not even the peak from 10 years ago. This is about growth in the U.S. economy—it is doable, but it needs leadership from DC.”
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Fresh data from the U.S. Department of Commerce highlights the extent of the decline in global interest. UK visitor numbers dropped by nearly 15% year-over-year. Arrivals from Germany fell by more than 28%. South Korea saw a similar drop of almost 15%. In other critical markets, including Spain, Colombia, Ireland, Ecuador, and the Dominican Republic, declines ranged from 24% to 33%. Even Canada, long one of America’s most dependable tourism feeders, is pulling back. Early summer bookings from Canadian travelers are already down by more than 20% compared to the previous year.
This trend comes at a time when outbound travel by Americans is soaring, further illustrating the disparity. While citizens travel the world in increasing numbers, inbound travel from international markets is sputtering. This growing imbalance doesn’t just impact local businesses and state economies, it chips away at America’s standing as a premier destination for global culture, business, and exchange.
The stakes are significant. In 2024, the U.S. Travel & Tourism sector contributed $2.6 trillion to the national economy, supporting over 20 million jobs and generating more than $585 billion in tax revenues, which accounted for nearly 7% of total government income. In 2019, international visitors alone brought in $217.4 billion and helped sustain close to 18 million jobs. Today, WTTC warns, that economic foundation is at risk of erosion.
In response, the WTTC is calling on the Trump-led administration to take decisive steps. These include easing travel access restrictions, rebuilding international marketing campaigns, and restoring the confidence of global travelers considering the U.S. as a destination. Without swift action, the country risks falling further behind in a global travel landscape that is rapidly moving forward.
