The United States Is the Only Country Seeing a Decline in Tourism Revenue
Among 184 economies worldwide, the United States is the only country that the World Travel & Tourism Council (WTTC) forecasts will experience a decline in tourism revenue this year.
“While other countries are rolling out the red carpet for visitors, the U.S. appears to be putting up a ‘closed’ sign,” said Julia Simpson, President and CEO of the World Travel & Tourism Council (WTTC).
The year 2025 is expected to be a bleak one for the U.S. tourism industry, as the country faces the risk of losing USD 12.5 billion in revenue from international visitors.
Of the 184 global economies analyzed by WTTC and Oxford Economics, the United States is the only nation projected to see a drop in tourism revenue this year.
The Statue of Liberty, one of the most iconic tourism symbols of the United States, is located in New York. Photo: Letz Go City Tours.
According to data from the World Travel & Tourism Council (WTTC), international visitor spending in the United States could fall to below USD 169 billion, representing a 7% decline compared with 2024 and 22% below the 2019 peak.
Ms. Simpson warned that the consequences of the downturn in the U.S. tourism sector could be severe. The U.S. travel and tourism industry is the largest in the world, contributing nearly USD 1.6 trillion to the economy and accounting for almost 9% of U.S.
GDP, including both direct and indirect contributions.
WTTC defines tourist spending as direct contributions, while ripple effects—such as spending by hospitality workers—are considered indirect contributions. The U.S. tourism industry has created approximately 20 million jobs and contributes about USD 585 billion in tax revenue annually, equivalent to 7% of total government revenue.
The decline in U.S. tourism this year is believed to be the result of factors accumulating over several years. Prolonged pandemic-related restrictions discouraged travelers, while a strong U.S. dollar has made travel to the United States increasingly expensive.
Japanese travelers, once among the most frequent visitors to the U.S., have been particularly affected, as the strong dollar has made costs prohibitive. Similar trends have been observed among European travelers.
Another factor contributing to revenue losses is a shift in visitor perception. The “America First” policy has been criticized for making the U.S. appear less welcoming as a destination. This growing sense of unease has had a tangible impact on the industry.
“Lawmakers need to clearly distinguish between legitimate tourism and illegal immigration,” Ms. Simpson said.
Statistics from the U.S. Department of Commerce show that in March, visitor arrivals from major markets declined sharply compared with the same period last year. Arrivals from the United Kingdom fell by 15%, Germany by 28%, South Korea by 15%, while other markets recorded declines ranging from 24% to 33%.
New York City had been expected to fully recover its tourism sector this year following the pandemic. However, by May, the city revised its forecast, stating it would welcome 400,000 fewer visitors and lose USD 4 billion in revenue compared with 2024.
Domestic visitors are projected to increase by 400,000, but international arrivals are expected to decline at twice that rate.
In 2024, spending by international visitors accounted for more than 50% of New York’s total USD 51 billion in tourism revenue, as foreign tourists tend to stay longer and spend more than domestic travelers.
In other major tourist destinations, 66% of businesses reported a sharp decline in bookings from Canadian visitors in 2025. New York Governor Kathy Hochul said this was partly linked to tariff policies and remarks referring to “Canada as the 51st state.” Among affected businesses, 26% have had to cut staff.
WTTC forecasts that the U.S. tourism industry will need at least until 2030 to return to pre-pandemic levels, provided conditions do not deteriorate further. One proposal currently under consideration in the U.S.
Congress is to increase the ESTA fee—the travel authorization for citizens of Visa Waiver Program countries—from USD 21 to USD 40. However, this policy is widely seen as likely to further discourage international visitors.
“The tourism industry is highly flexible and resilient. But if the wrong buttons are pushed, the consequences can be long-lasting,” Ms. Simpson said. With 90% of the U.S. tourism market currently domestic, future growth will become increasingly difficult if international visitor numbers continue to decline.
“India is growing, the Middle East is growing, China is attracting visitors, Europe remains strong. Only the United States is being left behind,” Ms. Simpson concluded.
