Tens of billions in tourism revenue at risk in the US this year

It's a uniquely American problem

The United States is set to suffer an unprecedented hit to its tourism sector, according to one of the latest studies examining how travel appetites are changing in the wake of US President Donald Trump's return to power in the United States. 

The US is set to lose at least $12.5 billion

In May 2025, the World Travel & Tourism Council (WTTC), a global body that represents the private sector travel and tourism industry, revealed that the United States was on track to lose an eyewatering $12.5 billion in international visitor spedning in 2025, and the losses could reach as high as $29 billion.

A 22.5% decrease in tourist spending

International visitor spending in the United States was projected by the WTTC to plunge in 2025. The WTTC projected that tourist spending would fall to $169 billion, down from $184 billion in 2024. This represents a 22.5% drop from its peak of $217 billion in 2019. 

Wide-ranging ramifications for the US

Such a large loss in spending will have wide-reaching ramifications for the US and will affect everything from local communities to the overall American economy. Businesses from coast to coast will be affected by the loss of tourist dollars according to the WTTC.  

Travel and tourism bring in billions

The WTTC projected that travel and tourism directly supported 20 million US jobs in the United States in 2024. It also brings in over $585 billion dollars in tax revenue annually, or roughly 7% of all government income in the United States. 

The only country to see a travel decline in 2025

Interestingly, the WTTC study found that out of the 184 countries it analyzed alongside Oxford Economics, the United States was the only one projected to see its international visitors decline in 2025. But what’s causing these declines?

A key market is disappearing

While the WTTC study didn’t address the issue of why travel and tourism in the United States was floundering in 2025, it did provide one key insight: America’s best source of international visitors—Canadians—are choosing not to travel to the US. 

Canadian visitors are drying up

According to the WTTC, the Canadian market is “drying up”. Summer bookings were down over 20% compared to 2024, which the WTTC noted was more than just a dip, but rather a wake-up call for the United States. 

The US is heading in the wrong direction

“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,” said Julia Simpson, WTTC President & CEO.

Urgent action is required

“Without urgent action to restore international traveller confidence, it could take several years for the U.S. just to return to pre-pandemic levels of international visitor spend, not even the peak from 10 years ago,” Simpson continued. 

Why aren’t Canadians visiting the US?

Canadians likely aren’t visiting the United States because of President Trump’s terrible treatment of his northern neighbor. Tariff attacks and assaults on Canada’s sovereignty have led to anti-American sentiment and a strong ‘Buy Canadian’ movement. 

Boycotting US products and travel

In May 2025, the Angus Reid Institute found that 76% of Canadians were boycotting US goods and 61% were canceling or delaying plans to travel to the United States. Other surveys findings have made even more shocking discoveries. 

The US is no longer safe for Canadians

A May 2025 poll from Leger Research and the Association for Canadian Studies found that 52% of survey respondents agreed with the statement that "it is no longer safe for all Canadians travelling to the United States,” according to the National Post. 

Canadians don’t feel welcome in the US

Another 54% said that they no longer felt welcome in the US. This is a problem for the United States because Canada is the largest source of international visitors, according to the US Travel Association. The group published some concerning data in February 2025. 

The top source of visitors in 2024

Canadians were the top source of international visitors in 2024, with 20.4 million visits. They generated $20.5 billion in spending and supported 140,000 US jobs. However, the loss of just 10% of this figure in 2025 would be catastrophic for the United States. 

A painful loss for Americans

“A 10% reduction in Canadian travel could mean 2.0 million fewer visits, $2.1 billion in lost spending and 14,000 job losses,” the US Travel Association warned. Unfortunately for Washington, it isn’t just Canadians who are avoiding travel to the US. 

Other key visitor market declines

According to the WTTC, arrivals from the UK were down 15% year-over-year, German visitors plunged by 28%, and South Korean inbound travel suffered a 15% decline. All of these countries are major sources of international visitors and spending for the US.