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

U.S. Stands Alone Among 184 Economies to See Decline 

 
London, UK, May 13, 2025: The World Travel & Tourism Council (WTTC), the global body representing the Travel & Tourism private sector, today announced its latest Economic Impact Research which found that the U.S. is on track to lose a staggering $12.5BN in international visitor spending this year.

Notably, international visitor spending to the U.S. is projected to fall to just under $169BN this year, down from $181BN in 2024.

This significant shortfall represents a 22.5% decline compared to the previous peak. 

The loss won’t be felt by Travel & Tourism alone, with WTTC saying it represents a direct blow to the U.S. economy overall, impacting communities, jobs, and businesses from coast to coast.

According to the study, the U.S, the largest Travel & Tourism sector in the world, is the only country among 184 economies analysed by WTTC and Oxford Economics, forecast to see international visitor spending decline 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, nearly 90% of all tourism spending came from domestic travel, with Americans holidaying at home in record numbers. But this heavy reliance on homegrown tourism is masking a serious vulnerability; the international market is where the real growth lies, and the U.S. is losing its crown.

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, 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 widely expected, the Canadian market is drying up, with early summer bookings down over 20% compared to last year. This is more than a dip. It’s a wake-up call.

While other countries are powering forward, the U.S. is slipping backward. Relying on domestic travellers might have kept the lights on during the pandemic, but without a bold international recovery plan, the world’s biggest Travel & Tourism economy risks falling further behind.

A Missed Economic Opportunity

The economic cost of inaction is clear. Travel & Tourism contributed $2.6TN to the economy last year and supported more than 20mn jobs. It also contributed more than $585BN in tax revenue annually, accounting for almost 7% of all government income. It could be even higher with a strong international visitor base. The sector has long been a reliable driver of federal, state, and local tax receipts.

At the same time, outbound travel is surging. Americans are travelling abroad in large numbers, yet inbound recovery from key markets has stalled. 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 warns that this imbalance not only affects local economies and employment but also undermines America’s position as a top global destination for trade, culture, and business.

In 2019, international visitors generated $217.4BN in revenue and supported almost 18MN jobs across America. Today, that legacy is under threat.

WTTC is calling for immediate action to address travel access, rebuild international marketing efforts, and restore global traveller confidence in the U.S.

For more information and to access the full factsheet, including WTTC’s latest Environmental Social Research (ESR), please visit WTTC's Research Hub.

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