The US tourism industry stands at risk of a $12.5 billion loss due to increased visa restrictions

The recent announcement by the US State Department regarding the suspension of visa processing in 75 countries has raised concerns about its ramifications on an already struggling tourism sector. This policy, cited to primarily safeguard national security, may neglect the economic repercussions that such restrictions entail.

According to a World Travel & Tourism Council (WTTC) report from May 2025, the US was poised to lose up to $12.5 billion in tourism spending with existing restrictions applying to only 38 countries. With the expansion to 75 countries, upcoming monetary losses are likely to be far greater.

Difficult Visa Acquisition

Historically, obtaining a US visa has been increasingly daunting. As expressed by former US consul-general Michael R. Schimmel, the goal is to encourage Filipinos and others around the world to visit the US, reinforcing that tourism is essential for American businesses.

Real-time consequences are noticeable as travel from critical markets, such as the United Kingdom and Germany, has plummeted—down by over 15% and 28%, respectively. Canada, the US’ neighbor, recorded a decline exceeding 20% in summer 2025 visits.

Economic Impact

The travel and tourism sector contributed a staggering $2.6 trillion to the US economy in 2024, supporting millions of jobs and generating significant tax revenue. However, hotel revenues saw a drop of about $12 billion, largely attributed to negative travel perceptions and restrictions.

As the situation evolves, the US government must work vigilantly to rebuild international marketing and restore traveler confidence if the tourism sector is to avoid a significant downturn.