USA Losing International Tourist Appeal, WTTC Claims
- Louise Ducrocq
- 3 hours ago
- 3 min read
The USA is facing a collapse of its inbound tourism market, the World Travel & Tourism Council (WTTC) has starkly claimed, with the country on track to lose a staggering $12.5bn in international visitor spending this year.
According to the WTTC’s latest Economic Impact Research, international visitor spending to the US is projected to fall to just under $169bn this year, down from $181bn in 2024, with global appeal in the country as a visitor destination declining.
This significant shortfall represents a 22.5% decline compared to the previous peak.
The loss won’t be felt by Travel & Tourism alone, with the WTTC saying it represents a direct blow to the US economy overall, impacting communities, jobs, and businesses from coast to coast.
According to the study, the US, the largest Travel & Tourism sector in the world, is the only country among 184 economies analysed by the WTTC and Oxford Economics, forecast to see international visitor spending decline in 2025.
A Global Leader in Reverse
Julia Simpson, WTTC President & CEO, said: “This is a wake-up call for the US 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 US government is putting up the ‘closed’ sign.”
“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. This is about growth in the U.S. economy – it is doable, but it needs leadership from DC.”
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, the WTTC said.
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:
UK arrivals, one of the U.S.’s most important source markets, down nearly 15% year over year
Germany, another significant source market, plunged more than 28%
South Korea – down almost 15%
Other key markets, such as Spain, Colombia, Ireland, Ecuador, and the Dominican Republic, saw double-digit drops between 24% and 33%
As widely expected, the Canadian market is drying up, with early summer bookings down over 20% compared to last year. This is more than a dip. It’s a wake-up call, the WTTC added.
While other countries are powering forward, the US is slipping backward. Relying on domestic travellers might have kept the lights on during the pandemic, but without a bold international recovery plan, the world’s biggest Travel & Tourism economy risks falling further behind. A Missed Economic Opportunity
The economic cost of inaction is clear. Travel & Tourism contributed $2.6TN to the economy last year and supported more than 20 million jobs. It also contributed more than $585bn 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 warns 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 $217.4bn in revenue and supported almost 18 million jobs across America. Today, that legacy is under threat.
The WTTC is calling for immediate action to address travel access, rebuild international marketing efforts, and restore global traveller confidence in the US.
