Tourism To The United States Is Collapsing

19th May 2025

Tourism to the U.S. is facing a significant decline, particularly in international visitor spending. The World Travel and Tourism Council (WTTC) projects a $12.5 billion drop in foreign travel spending in 2025, marking a 7% decrease from the previous year and a 22% decline from its peak in 2019.

Several factors are contributing to this downturn:

Unpopular policies: Stricter border controls and visa requirements have made travel to the U.S. less appealing.

Strong U.S. dollar: A stronger exchange rate has made vacations in the U.S. more expensive for international travellers.

Political concerns: Some foreign tourists fear detainment at the border, particularly after Germany updated its travel advisory.

Declining visitor numbers: Travel from Canada and Mexico, the largest sources of inbound visitors, has dropped by about 20% year-over-year. Visits from British, German, and South Korean travellers are also trending lower.

While domestic tourism remains strong, the decline in international visitors is impacting the broader travel industry. Other countries are actively welcoming tourists, while the U.S. is perceived as less inviting.

The decline in tourism is hitting the U.S. economy hard, with projected losses of $12.5 billion in travel revenue in 2025. Tourism is a major economic driver, contributing nearly 9% of the U.S. economy and employing 20 million people. Here's how the downturn is making an impact:

Job losses: The hospitality, retail, and transportation sectors are seeing layoffs as fewer tourists visit.

Reduced tax revenue: Tourism generates $585 billion in tax dollars annually, and the decline is cutting into government funds.

Struggling businesses: Hotels, restaurants, and attractions are losing customers, especially in major tourist hubs like New York City, which expects 400,000 fewer visitors and a $4 billion drop in spending.

Trade deficit concerns: International tourism is considered a service export, and the decline is widening the U.S. trade deficit.

Weakened airline industry: Airlines are seeing fewer bookings, with European travel to the U.S. down 12% year-over-year.

The ripple effects are widespread, and experts warn that the U.S. may not fully recover to pre-pandemic tourism levels until at least 2030.