US May Lose $12.5 Billion in International Visitor Spending

The World Travel & Tourism Council (WTTC), the global body representing the Travel & Tourism private sector, said that the US was on track to lose $12.5 billion in international visitor spending this year.

In its latest Economic Impact Research (EIR), WTTC said that the international visitor spending to the US is projected to fall to just under $169 billion this year, down from $181 billion in 2024. This significant shortfall represents a 22.5% decline compared to the previous peak, WTTC said.

The WTTC research also said that the loss won’t be felt by Travel & Tourism alone, and it represents a direct blow to the US economy overall, impacting communities, jobs, and businesses from coast to coast.

According to the WTTC research, the US, the largest travel & tourism sector in the world, is the only country among 184 economies analysed by WTTC and Oxford Economics, forecast to see international visitor spending decline in 2025.

A Global Leader in Reverse

WTTC President and CEO Julia Simpson said that this is a wake-up call for the US government as the world’s biggest travel & tourism economy was 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 US government is putting up the ‘closed’ sign,’ she said.

“Without urgent action to restore international traveller confidence, it could take several years for the US just to return to pre-pandemic levels of international visitor spend, not even the peak from 10 years ago. This is about growth in the US economy and it is doable, but it needs leadership from DC,” she added.

In 2024, nearly 90% of all tourism spending came from domestic travel, with Americans holidaying at home in record numbers. But this heavy reliance on homegrown tourism is masking a serious vulnerability; the international market is where the real growth lies, and the US is losing its crown.

According to the US Department of Commerce, new international arrivals data for March 2025 reveal a sharp and widespread drop in inbound travel from many of the country’s key source markets:

The UK arrivals, one of the US’s most important source markets, was down nearly 15% y-o-y, while Germany, another significant source market, plunged more than 28%. South Korea was down almost 15%.

Other key markets, such as Spain, Colombia, Ireland, Ecuador, and the Dominican Republic, saw double-digit drops between 24% and 33%, the research showed.

While other countries are powering forward, the US was slipping backward. Relying on domestic travellers might have kept the lights on during the pandemic, but without a bold international recovery plan, the America’s travel & tourism economy risks falling further behind.

A Missed Economic Opportunity

Travel & Tourism contributed $2.6 trillion to the US economy last year and supported more than 20 million jobs. It also contributed more than $585 billion in tax revenue annually, accounting for almost 7% of all government income. It could be even higher with a strong international visitor base. The sector has long been a reliable driver of federal, state, and local tax receipts.

“At the same time, outbound travel is surging. Americans are travelling abroad in large numbers, yet inbound recovery from key markets has stalled. The US is welcoming fewer visitors from its neighbours and countries further afield, which is a clear indicator that the global appeal of the US is slipping,” the WTTC report said.

The WTTC warned that this imbalance not only affects local economies and employment but also undermines America’s position as a top global destination for trade, culture, and business.

In 2019, international visitors generated $217.4 billion in revenue and supported almost 18 million jobs across America. Today, that legacy is under threat, the report said.