USA loses ground as a global tourism destination

USA loses ground as a global tourism destination

13-09-25

International tourism to the United States faces a serious decline in 2025, with estimated losses of $30 billion in foreign visitor spending—a setback that damages the country’s image as a preferred destination and leaves room for other nations to capture the displaced tourism.

Until recently, the U.S. Travel Association projected that foreign tourist spending this year would reach $200.8 billion on American soil. However, those expectations have been revised downward. The World Travel & Tourism Council (WTTC) now forecasts only $169 billion, pointing to an “abrupt and widespread” drop in arrivals.

One of the main drivers of this decline is the strengthening of the U.S. dollar, which raises the real cost for travelers planning trips from abroad. Adding to this challenge is an increasingly tense political and social climate that discourages millions of potential visitors from choosing the United States for leisure or business.

The trend is especially visible in the relationship with Canada: arrivals from that country fell 18 % during the first half of 2025, which translates into roughly 1.75 million fewer travelers. Although domestic tourism has partially cushioned the fall—for example, hotel occupancy in July reached 77.6 %, the highest level since 2019—the loss in international travel remains significant.

Meanwhile, other destinations are capitalizing on the gap left by the United States. Canada has launched initiatives such as the “Canada Strong Pass,” encouraging visits to museums, national parks, and historic sites. Mexico, Latin America as a whole, and the Caribbean are also seeing increased demand, strengthening their position as attractive options for travelers seeking more affordable or friendlier destinations under current global conditions.

European travel preferences are shifting as well. After extended stays in nearby destinations, many Europeans are choosing to explore within Europe or head to the Middle East. In Asia, studies show that travelers from Southeast Asia and beyond are now excluding the United States from their plans, favoring regional trips or opting for Europe and Oceania instead.

Spain, Saudi Arabia, and Turkey are among the big winners of this trend: Spain has recorded a substantial increase in basic arrivals compared to 2019; Saudi Arabia and Turkey have also added millions of visitors. Italy, France, and Greece continue to consolidate their appeal, while in the Americas, Mexico stands out as the main beneficiary outside Europe.

The U.S. decline is not new, but it now appears more entrenched. Its global tourism market share has gradually decreased over the past decades—from 8.4 % in 1996 to 4.9 % in 2024—and is now projected to fall further to 4.2 % in 2025. Analysts warn that this lower level could persist for years if no strategic measures are taken.

This context raises urgent questions about what changes are needed to reverse the trend. Experts point to policies that lower entry barriers, improvements in tourism infrastructure, price adjustments, and international promotional campaigns better suited to today’s competitive landscape. Restoring global confidence—both in safety and hospitality—is also considered essential, along with a vision that embraces sustainability, accessibility, and authentic cultural experiences.

The United States thus faces a serious challenge: not only to recover lost international visitor numbers but also to reconnect with a global tourism market that is discovering new attractions in alternative destinations. These destinations have successfully leveraged economic shifts, visa policies, perceived value for travelers, and the growing desire for closer or different experiences. The year 2025 may well mark a turning point: a time for transformation—or the risk of a prolonged loss of relevance as one of the world’s leading travel destinations.

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