U.S. tourism loses momentum

04-10-25

The United States, long considered a global stronghold of tourism, is facing a major setback this year. According to recent data from the World Travel & Tourism Council (WTTC), international visitor spending in the U.S. could fall by around $12.5 billion in 2025, dropping to less than $169 billion. Even so, the country retains its global leadership in the tourism economy thanks to a strong domestic market.

This decline represents a 7% loss in projected foreign spending for the year and highlights a trend in which the U.S. is the only one among 184 economies analyzed by the WTTC expected to record an absolute contraction in international tourism. The causes behind this drop are multiple: the strengthening of the U.S. dollar—which makes stays more expensive for foreign visitors—stricter immigration policies, tougher visa restrictions, geopolitical tensions, and the international image the country projects.

The outlook worsens when looking at source markets that have seen notable declines: arrivals from the United Kingdom are estimated to have fallen by around 15%, Germany shows a drop of nearly 28%, while flows from South Korea, Spain, and several Latin American countries also show double-digit decreases. Canada, historically one of the top sources of visitors, has also registered a significant annual decline.

Despite this adverse scenario, the U.S. tourism economy remains supported by strong domestic demand. In 2024, roughly 90% of all tourism spending came from the domestic market, cushioning the negative effects of the international downturn. In addition, the country continues to hold a leading position in terms of infrastructure, connectivity, and the diversity of its tourism offerings—factors that still give it an advantage over global competitors.

However, excessive reliance on the domestic market conceals important vulnerabilities. Real growth in the tourism sector—and its contribution to regional development—depends largely on international visitors, who represent segments with greater spending power and expansion potential. If this downward trend continues, not only will destinations and local economies that depend on global inflows suffer, but jobs, tax revenues, and the U.S.’s ability to position itself as a destination of choice in cultural, audiovisual, or business tourism could also be at risk.

The WTTC has warned that without urgent actions to rebuild foreign traveler confidence—through more traveler-friendly visa policies, stronger international promotion, and clear messages of welcome—it could take years to recover pre-pandemic levels of spending. More cautious analyses suggest that certain emerging restrictive measures could deepen the losses, with estimated impacts reaching as high as $25 billion to $29 billion in the medium term if the current course is not corrected.

In contrast with the U.S. decline, other regions and countries are showing positive or recovering dynamics. China is projecting a 22.7% growth in its tourism market, while Europe continues to strengthen its leadership with multiple destinations among the world’s top ten. The WTTC’s 2025 global trends report even indicates that tourism’s contribution to the world economy could surpass $2.1 trillion, driven by growth in regions such as Asia-Pacific and the Middle East.

For the U.S., the challenge is clear: maintaining its competitive edge will not be enough if it cannot halt the erosion of its appeal to international travelers. Renewing investment in global promotion, rethinking migration and visa policies, and projecting a strategy of openness and hospitality could make the difference between regaining lost ground or watching other destinations take the lead on the global tourism stage.

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