Foreign Travel Spending
International travel spending in the United States is projected to decrease by approximately 7%, or $12.5 billion, in 2025, marking a concerning trend for the country’s tourism industry.
According to a recent report by the World Travel and Tourism Council (WTTC), this anticipated drop is being driven by a combination of political unease and a strong U.S. dollar, which have collectively made the U.S. a less appealing destination for foreign tourists.
WTTC CEO Julia Simpson highlighted that international travelers are increasingly opting for alternative destinations, citing negative perceptions of U.S. policies under President Donald Trump’s administration. “Out of 184 countries, the U.S. is the only one seeing an absolute decline in international visitor spending,” she noted. “The U.S. is definitely losing its crown in this area.”
Currently, the United States holds the title of the world’s largest travel and tourism economy. However, the projected decline in international visitor spending — expected to fall below $169 billion in 2025 from $181 billion in 2024 — places it 22% below the 2019 pre-pandemic peak.
This downturn is not merely a result of currency fluctuations. While a strong U.S. dollar has made vacations in the United States more expensive, deeper issues such as political rhetoric, restrictive entry policies, and border control practices are deterring tourists further.
For instance, Germany recently updated its U.S. travel advisory, warning that even travelers with valid visas or approved entry waivers may not be guaranteed entry — an action that followed reports of German nationals being detained at U.S. borders.
Additionally, under the Trump administration, all foreign nationals aged 14 or older who remain in the U.S. for more than 30 days must now register and submit fingerprints, including Canadians who were previously allowed to stay for six months without a visa.
Simpson criticized these measures, stating, “While the rest of the world is putting up open signs and encouraging tourism, the U.S. appears to be sending the opposite message — that it’s not open for business. And that’s a great shame.”
Although domestic tourism still accounts for around 90% of the U.S. travel and tourism economy, foreign visitors contribute significantly more per capita. Canadians, for example, spend three times more on U.S. vacations than the average American tourist, and overseas travelers tend to spend seven to eight times more than domestic travelers.
Alarmingly, travel from key markets like Canada and Mexico — historically the largest sources of inbound tourists to the U.S. — has declined by about 20% year-over-year. Additionally, a downward trend has been observed in travel from the United Kingdom, Germany, and South Korea.
While data from the U.S. National Travel and Tourism Office shows an 8% uptick in overseas visits in April, this follows a sharp 12% year-over-year decline recorded in March, suggesting volatility and ongoing uncertainty in the sector.
