U.S. Economy Expected to Lose $12.5 Billion in International Visitor Spend This Year
The World Travel & Tourism Council (WTTC) has released an alarming report indicating that the U.S. is poised to lose approximately $12.5 billion in international visitor spending this year. This figure marks a considerable drop from the $181 billion recorded in 2024, with projections estimating this year’s spending to be just shy of $169 billion. Such a decline corresponds to a staggering 22.5% decrease from previous peak levels.
A Global Leader in Decline
Julia Simpson, WTTC’s President & CEO, emphasized the urgency of the situation: “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 due to a lack of demand, but a failure to act.” She further cautioned that restoring international traveler confidence will demand immediate and bold actions from the government.
According to WTTC’s findings, the U.S. remains the only one of 184 countries assessed to forecast a decline in international visitor spending for 2025. This leaves the nation vulnerable as it relies increasingly on domestic tourism amidst dwindling international arrivals.
Significant Source Market Declines
The recent data from the U.S. Department of Commerce reveals steep drops in arrivals from key source markets, including:
- UK - down nearly 15% year-over-year
- Germany - down over 28%
- South Korea - a decline of almost 15%
- Other countries, such as Spain, Colombia, Ireland, and the Dominican Republic, showed decreases between 24% and 33%.
While domestic tourism has provided some cushion during the pandemic, it masks a troubling reality; the international market should be the focus for growth. Failure to develop a strategic recovery plan may leave the U.S. lagging behind its global counterparts in attracting international tourists.
Economic Consequences
The WTTC has underscored that the repercussions of inaction are dire, affecting local economies, jobs, and undermining the U.S.’s reputation as a top global destination. In 2019, the international tourism sector generated $217.4 billion in revenue, supporting close to 18 million jobs in the U.S. Today, that legacy is at risk.
WTTC advocates for immediate initiatives to improve travel access and restore international marketing efforts, which are essential to regaining trust among travelers worldwide.
