US Economy to Lose $12.5B in Tourism Spending in 2025, Report Warns

The U.S. stands to lose out on $12.5 billion in international traveler spending this year, owing to a decline in “international traveler confidence.”

The World Travel & Tourism Council (WTTC) has projected that visitor spending will fall from $181 billion in 2024 to under $169 billion.

Why It Matters

Since taking office in January, the Trump administration has implemented hard-line immigration enforcement actions, and even tourists have faced increased scrutiny.

The U.S. remains the world’s largest market for travel and tourism, which contributed about $2.6 trillion to its economy last year. However, the WTTC warned that without a change of course, international visitor numbers could decline this year, the effects of which would be felt beyond the tourism sector and represent “a direct blow to the U.S. economy overall.”

What To Know

According to the WTTC, the U.S. is the only nation among the 184 analyzed that will see a decline in visitor spending this year.

While it noted that 90 percent of U.S. tourism spending came from domestic travel in 2024, the “heavy reliance on homegrown tourism is masking a serious vulnerability; the international market is where the real growth lies.”

WTTC President Julia Simpson told Reuters that a strong dollar could deter travelers, while also citing the increased scrutiny tourists are facing when attempting to enter the country.

“While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign,” Simpson said in a news release.

Against the backdrop of tighter immigration controls enacted by the Trump administration, numerous reports of lengthy questionings and detentions of international visitors have prompted several countries to issue warnings to their citizens regarding travel to the U.S.

The advisories highlight concerns over tightening visa rules, the strict enforcement of entry requirements and specific difficulties that may be faced by LGBTQ+ citizens.

Jukka Laitamaki, a professor of international hospitality and tourism at New York University, told Newsweek in March that these could result in a “60 to 120 billion USD” impact on the American tourism sector.

The U.S.’s northern neighbor was among the countries that issued travel advisories. Travel between the U.S. and Canada has also been affected by the ongoing boycott of American-made products, sparked by anger over the tariffs that U.S. President Donald Trump placed on the country’s exports and his threat to turn Canada into the 51st state.

According to the WTTC, early summer bookings from Canada—the leading source of visitor arrivals to the U.S.—are down by more than 20 percent compared to last year. The organization described the decline as “more than a dip. It’s a wake-up call.”

What People Are Saying

Julia Simpson, the president and CEO of the World Travel & Tourism Council, said in a news release on May 14: “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. … This is about growth in the U.S. economy—it is doable, but it needs leadership from D.C.”

What Happens Next

The WTTC has warned that a significant decline in visitor numbers may persist through the summer. The organization has called for “immediate action” from the U.S. government to “restore global traveler confidence in the U.S.” and ensure that the tourism sector and broader U.S. economy do not suffer.