U.S. Economy Faces $12.5 Billion Loss in International Traveler Spending in 2025
The World Travel & Tourism Council (WTTC) has released new research showing that the U.S. is expected to lose $12.5 billion in international visitor spending this year. This drop will reduce international spending in the U.S. to just under $169 billion in 2025, down from $181 billion in 2024. This represents a 22.5 percent decrease from the previous high point.
The U.S. stands alone among 184 economies analyzed by WTTC and Oxford Economics as the only country forecast to experience a decline in international traveler spending this year. The loss will affect more than just the travel sector. It will impact communities, jobs, and businesses across the nation, given travel’s broad economic reach.
Julia Simpson, WTTC President and CEO, described the situation as a wake-up call for the U.S. government. She explained that the decline is not due to a lack of demand but results from government inaction that discourages international travelers. Simpson warned that without prompt measures to restore traveler confidence, it may take several years for the U.S. to return to pre-pandemic spending levels.
In 2024, domestic travel made up nearly 90 percent of tourism spending in the U.S., with many Americans vacationing at home. However, this reliance on domestic visitors hides a vulnerability since international travelers drive genuine growth in the sector. The current downward trend threatens the U.S.’s position as the world’s largest travel and tourism economy.
Data from the U.S. Department of Commerce shows sharp declines in visitors from key international markets in March 2025. Arrivals from the United Kingdom fell by nearly 15 percent compared to the previous year, while German visitors dropped by more than 28 percent. South Korea saw a reduction close to 15 percent. Other important countries, including Spain, Colombia, Ireland, Ecuador, and the Dominican Republic, showed double-digit declines ranging between 24 and 33 percent. The Canadian market, traditionally a major source of travelers, recorded a decrease of over 20 percent in early summer bookings.
The WTTC warns that while other countries are advancing their travel sectors, the U.S. is moving backward. The current dependence on domestic tourism may have helped during the pandemic but cannot sustain growth. The organization calls for a bold international recovery plan to keep the U.S. competitive globally.
The economic stakes are high. Travel and tourism contributed $2.6 trillion to the U.S. economy in 2024 and supported over 20 million jobs. The sector also generated more than $585 billion in annual tax revenue, accounting for nearly 7 percent of government income. These contributions could grow with a stronger international presence.
At the same time, outbound travel by Americans is increasing, which intensifies the imbalance as fewer global visitors come to the U.S. This situation erodes America’s status as a leading destination for trade, culture, and business.
In 2019, international visitors brought in $217.4 billion and supported close to 18 million jobs nationwide. WTTC stresses that this legacy is now at risk. The organization urges immediate action to improve travel access, enhance international marketing, and rebuild global traveler confidence.
For further details and access to the full WTTC factsheet and Environmental Social Research, readers can visit the WTTC Research Hub.
#internationaltravelnews #latesttravelrestrictions #globaltravelupdates #travelnews2025 #internationaltraveltips #travelnews #internationaltravelnews #borderreopeningupdates #traveladvisoryupdates #flightcancellationsnews #covidtravelregulations #visapolicychanges
#internationalairportupdates #passportrenewaldelays #countryentryrequirements #travelsafetynews #internationaltraveltrends #travelalertscountry #globaltourismnews #newtravelbans #reopeningfortourists #bestcountriestovisitnow #travelinsurancenews #travelguidelinechanges #airlinestrikeupdates #globaltraveldisruptions #breakingtravelnews #notesttraveldestinations #internationaltravelforecasts #newairlineroutes #globaltravelrules #safestplacestotravel #travelindustrynews #travelbanupdates #schengenvisaupdates #travelbubbleannouncements #tourismboardupdates #realtimetraveladvisories #borderchanges2025 #embassytravelalerts #latesttravelnews #livingmediterranean #retirementtravelguide
