While other nations are rolling out welcome mats, the United States is putting up a “closed sign,” says Julia Simpson, president and CEO of the World Travel & Tourism Council (WTTC).
According to the global tourism organization, the U.S. is set to lose $12.5 billion dollars in international traveler spending this year, which WTTC says will be a blow to communities, jobs and businesses from coast to coast. The organization’s latest Economic Impact Research — done in conjunction with global advisory firm Oxford Economics — found that the country’s visitor spending is expected to fall to under $169 billion this year, down from $181 billion in 2024.
This represents a 22.5% decline from U.S. travel’s peak in 2019, when international visitors generated $217.4 billion in revenue and supported almost 18 million jobs across America. The report also says that the U.S. is the only country out of 184 analyzed to see a decline in international visitor spending this year.
"This is a wake-up call for the U.S. government,” Simpson said. “The world’s biggest travel and tourism economy is heading in the wrong direction, not because of a lack of demand, but because of a failure to act.”
According to Simpson, the U.S. government needs to take “urgent action to restore international traveler confidence,” address travel access and rebuild international marketing efforts.
This is about growth in the U.S. economy — it is doable, but it needs leadership from D.C.
“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,” she said. “This is about growth in the U.S. economy — it is doable, but it needs leadership from D.C.”
Other Organizations Stress Major Economic Losses As Well
WTTC’s warning to the U.S. government aligns with recent messaging from other organizations that are also projecting huge losses for the U.S. economy due to a decline in international visitation and spending.
In a release sent earlier this month, the U.S. Travel Association shared that “every 1% drop in international visitor spending is equal to $1.8 billion lost in export revenue annually,” and if current trends persist through the year, that “the U.S. stands to lose $21 billion in travel-related exports.”
"Travel must be a priority to Washington — this is a $1.3 trillion dollar industry that supports 15 million American jobs and makes up 2.5% of the U.S. GDP,” said Geoff Freeman, CEO of U.S. Travel. “Current data tells us that we must be more welcoming, starting today. Our messaging and our policies must encourage, not deter, international travelers from visiting the U.S. With global events like the World Cup, Ryder Cup and America's 250th birthday on the horizon, there is a need for urgent action."
Freeman says that the U.S. "must address travelers' concerns, send an invitation to visit the U.S., and fix the systems and slow visa processes that make the United States less competitive."
And last month, a coalition of North American travel organizations — including Adventure Travel Trade Association, Canadian Association of Tour Operators, Indigenous Tourism Association of Canada, International Inbound Travel Association, United States Tour Operators Association and more — projected that the U.S. could lose up to $18 billion in traveler spending.
Countries on the Decline
The WTTC points to data from the U.S. Department of Commerce, which shows that international arrivals for March dropped significantly for several of the country’s key inbound markets. The United Kingdom and South Korea dropped by nearly 15%, while Germany arrivals dropped by 28%.
Spain, Colombia, Ireland, Ecuador and the Dominican Republic also saw double-digit drops between 24% and 33%. And Canada inbound tourism is also taking a hit, with early summer bookings down by more than 20%.
Meanwhile, Americans continue to travel abroad in large numbers, creating what the WTTC calls an “imbalance [that] not only affects local economies and employment but also undermines America’s position as a top global destination for trade, culture and business.”
