WASHINGTON- In an unprecedented development affecting the world’s largest economy, the United States stands to lose approximately $12.5 billion in foreign tourism revenue during 2025.
According to research published by the World Travel and Tourism Council (WTTC) in collaboration with Oxford Economics, the United States has earned the distinction of being the only major destination country projected to experience a decline in international tourists this year.
Julia Simpson; Photo- World Travel and Tourism CouncilUS Tourism Decline
The analysis reveals that spending by international visitors to the U.S. is expected to drop to $181 billion, marking a substantial 22.5% decrease from peak levels recorded a decade earlier.
This downturn represents more than just statistics on a spreadsheet; as the WTTC, a consortium of leading travel industry corporations, emphasises, it “represents a direct blow to the U.S. economy overall, impacting communities, jobs, and businesses from coast to coast.”
The tourism sector has historically been a significant economic driver for the United States. In 2024, it contributed an impressive $2.6 trillion to the nation’s economy while supporting over 20 million jobs across various industries.
Additionally, tourism-related activities generated more than $585 billion in tax revenues, accounting for nearly 7% of the country’s total tax income.
WTTC Team; Photo- World Travel and Tourism CouncilWTTC President Julia Simpson has highlighted the need for government intervention to revitalise tourism growth.
“While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign.”
Julia Simpson, President, WTTC (Drawing a stark contrast between the United States and other nations)
Political factors appear to be influencing this tourism decline. Under President Donald Trump’s administration, heightened focus on illegal immigration enforcement, controversial statements about other nations, and implementation of tariffs on foreign goods have reportedly contributed to the situation.
These policies have sparked consumer boycotts of American products in multiple countries and discouraged international travel to the United States.
Photo: Glenn Beltz | FlickrTravellers Apprehension
In an interview with the New York Times, Simpson revealed that potential visitors harbour fears about travelling to the United States.
“There are also concerns over visas — whether they’ve got the right visa or might accidentally get arrested, which has made people quite fearful.”
Julia Simpson, President, WTTC
The report draws attention to U.S. Department of Commerce data showing marked decreases in March 2025 visitor arrivals from key markets.
The United Kingdom and South Korea both registered nearly 15% reductions, while Germany, Ireland, and Spain experienced even steeper declines exceeding 20%.
Additional data indicates a troubling 20% reduction in early summer bookings from Canada, America’s northern neighbour.
Walt Disney World, Florida; Photo- Go USAConcerning Trend
The WTTC characterises this downturn not as a minor variation but as a significant warning sign requiring attention. “This is more than a dip. It’s a wake-up call,” the organisation stated emphatically.
“The U.S. is welcoming fewer visitors from its neighbours and countries further afield, which is a clear indicator that the global appeal of the U.S. is slipping.”
WTTC
Compounding these challenges, the report notes that American citizens are increasingly choosing to travel abroad, further straining the domestic tourism industry. This dual phenomenon of fewer incoming visitors and more outbound American travellers creates a concerning economic imbalance for the U.S. travel sector.
As global tourism patterns continue evolving, industry experts suggest that restoring America’s appeal as a premier travel destination will require coordinated efforts between government agencies and private sector stakeholders to address both policy issues and international perceptions.
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Airlines Offering Low Fares as European Visitors to US Decline by 17%
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