‘Absolute Decline’: Collapse in U.S. Tourist Spending

Trump during a campaign rally

Travel spending by international visitors to the United States is falling, with inbound travel from Canada and Mexico down about 20 percent and key markets like the UK, Germany, and South Korea showing less interest. Nearly 90 percent of U.S. travel spending comes from domestic tourists, which puts more pressure on the sector as international visits decline. As a result, international travel spending is projected to drop by $12.5 billion in 2025.

Trump is sworn in as the 47th US President

The decline stems from various factors, including concerns about border entry procedures due to President Donald Trump's policies and unfavorable exchange rates that make U.S. vacations more costly. Updates to the U.S. travel advisory by Germany, stating that a visa or entry waiver does not guarantee entry, have increased apprehension among international visitors.

A United Airlines flight into Chicago

WTTC President & CEO Julia Simpson said, "Of 184 countries, the U.S. is the only one that's seeing an absolute decline in international visitor spending." She added, "The U.S. is definitely losing its crown in this area."

A passenger makes their way through TSA security

Inbound travel from Canada and Mexico has decreased by about 20 percent year-over-year, while travelers from key markets—such as the United Kingdom, Germany, and South Korea—are showing less interest in visiting the U.S. Nearly 90 percent of travel spending in the U.S. comes from domestic tourism, highlighting a significant challenge for the sector.

Vehicles are parked outside Million Air at Cecil Airport

The travel and tourism sector supported over 20 million jobs and contributed $2.6 trillion to the U.S. economy. International visitors generated $217.4 billion in revenue and supported nearly 18 million jobs in 2019; however, this vital economic asset is now at risk.

Passengers at T.F. Green International Airport

Simpson said, "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."

The Autism Flies program at T.F. Green Airport

While outbound travel from the U.S. has surged, the inability to attract international visitors threatens local economies and employment. WTTC has called for immediate government action to improve travel access, strengthen international marketing efforts, and restore global traveler confidence in the U.S.

Passengers walk through security in Rhode Island

Simpson said, "The rest of the world are putting up open signs and getting people to come and see their country." She added, "The U.S. at the minute has firmly got a 'we're not open for business, closed' sign, which is a great shame."

Grace Hall covers U.S. politics & news for content partner Modern Newsstand LLC.