U.S Economy Set To Lose $12.5BN In International Traveller Spend this year

U.S Economy Suffers Blow from Travel Decline

The World Travel & Tourism Council (WTTC) has announced its latest Economic Impact Research. It revealed that the U.S. is set to experience a staggering loss of $12.5 billion in international visitor spending this year. Specifically, international visitor spending in the U.S. is expected to drop to just under $169 billion this year, a decrease from $181 billion in 2024. This substantial decline signifies a 22.5% reduction from the previous peak. 

The impact won’t be limited to Travel & Tourism; WTTC states it is a significant setback for the U.S. economy overall, affecting communities, jobs, and businesses nationwide. The study reveals that the U.S., the world's largest Travel & Tourism sector, is the only nation among 184 economies assessed by WTTC and Oxford Economics projected to experience a decline in international visitor spending in 2025.

A Global Leader in Reverse

Julia Simpson, WTTC President & CEO, said: “This is a wake-up call for the U.S. government. 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.”

Simpson continues, “Without urgent action to restore international traveller confidence, 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.” 

In 2024, almost 90% of tourism expenditures originated from domestic travel, as Americans vacationed at home in unprecedented numbers. However, this significant dependence on local tourism hides a critical weakness; the true growth potential resides in the international market, and the U.S. is relinquishing its dominance.

According to the U.S. Department of Commerce, new international arrivals data for March 2025 reveal a sharp and widespread drop in inbound travel from many of the country’s key source markets: 

1. UK arrivals, one of the U.S.’s most important source markets, are down nearly 15% year over year
2. Germany, another significant source market, plunged more than 28%
3. South Korea – down almost 15%
4. Other key markets, such as Spain, Colombia, Ireland, Ecuador, and the Dominican Republic, saw double-digit drops between 24% and 33%

As anticipated, the Canadian market is shrinking, with early summer reservations decreasing by more than 20% compared to last year. This situation is more than just a decline; it serves as a wake-up call. Meanwhile, while other countries are advancing, the U.S. is regressing. Although depending on domestic travelers helped sustain the industry during the pandemic, the largest Travel & Tourism economy in the world risks lagging even further without a bold recovery plan for international tourism.

A Missed Economic Opportunity

The economic impact of inaction is evident. Last year, Travel & Tourism contributed $2.6 trillion to the economy and supported over 20 million jobs. Additionally, it generated more than $585 billion in annual tax revenue, representing nearly 7% of all government income. This figure could increase with a robust international visitor base. Historically, this sector has consistently been a significant source of tax revenue for federal, state, and local governments.

Simultaneously, outbound travel is on the rise. Americans are traveling abroad in significant numbers, while the recovery of inbound travel from key markets has stagnated. The U.S. is seeing a decrease in visitors from neighboring countries and more distant locations, indicating a clear decline in the global attractiveness of the U.S.

WTTC cautions that this imbalance affects not only local economies and employment but also jeopardizes America’s status as a premier global hub for trade, culture, and business. In 2019, international visitors brought in $217.4 billion in revenue and supported nearly 18 million jobs nationwide. Today, that legacy is at risk.

WTTC urges prompt measures to enhance travel access, revitalize international marketing initiatives, and regain global traveler confidence in the U.S.