US Faces $12.5 Billion Loss in International Tourism Revenue in 2025

The US is expected to lose approximately12.5 billion in international visitor spending this year, according to the World Travel & Tourism Council (WTTC). International tourism to the US is forecast to decline to just under $169 billion, down from $181 billion in 2024, representing a 22.5 per cent drop from the previous peak.

This decline is unique among 184 global economies analysed by WTTC and Oxford Economics, with the US being the only country to see a decrease in international tourism this year. The decrease highlights a wider economic impact, affecting jobs, communities, and businesses nationwide.

Julia Simpson, WTTC President & CEO, commented, “This is a wake-up call for the US 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 US government is putting up the ‘closed’ sign.”

Simpson continues, “Without urgent action to restore international traveller confidence, it could take several years for the US 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 US economy - it is doable, but it needs leadership from DC.”

While domestic travel made up nearly 90 per cent of tourism in 2024, boosted by Americans staying local, the international market's decline presents a serious vulnerability. Key source markets, including the UK, Germany, and South Korea, have shown significant drops in inbound travel, with some markets experiencing reductions of over 28 per cent.

The economic value of travel is substantial, contributing $2.6 trillion in 2024 and supporting over 20 million jobs, alongside generating nearly $585 billion in tax revenue. However, as Americans travel more abroad, the US is welcoming fewer foreign visitors, threatening its position as a leading global destination.