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America Is Losing Tourists, and $12.5 Billion with Them

The U.S. is projected to lose $12.5 billion in tourism revenue this year – a warning sign with serious long-term consequences.

What Happened

The United States is projected to lose $12.5 billion in international tourism revenue in 2025, according to the World Travel & Tourism Council (WTTC). While most top global destinations are recovering from the pandemic-era travel slump, the U.S. is moving in the opposite direction.

According to the press release from the WTTC, spending from international travelers is expected to drop from $181 billion in 2024 to just under $169 billion in 2025. That’s a 7% decline, and compared to 2019’s peak of $217 billion, it’s a 22.5% drop.

What’s interesting is that the U.S. is the only country among 184 economies in the WTTC study projected to lose international visitor spending this year. Countries like France, Spain, and Mexico are all bouncing back. But for the U.S., global travelers are increasingly looking elsewhere.

The falloff isn’t random. Travel to the U.S. from key markets like Germany, Spain, the U.K., and Canada has plummeted, with some falling by more than 25%. The reasons behind the drop go deeper than fluctuating travel trends.

Why It Matters

Tourism is a massive sector in the U.S. economy. It fuels jobs, supports small businesses, and pumps money into local communities. When international visitors come, they spend on hotels, food, transportation, entertainment, and shopping, often outspending domestic travelers.

Losing $12.5 billion in potential revenue affects more than just tourism companies. That money could have helped to sustain thousands of jobs while also supporting countless businesses in cities like New York, Los Angeles, and Miami. It would have funded local services through hotel and sales taxes.

Beyond the dollars, international visitors bring cultural value and global attention. These are essential to a country’s soft power and global standing.

The reasons for this drop are a mix of policy and perception. The U.S. has made itself harder to visit in the form of lengthy visa wait times and complicated entry requirements. Furthermore, stories of travelers being detained at the border have damaged the country’s reputation as a welcoming destination.

It also doesn't help that the U.S. dollar is strong compared to other foreign currencies. This makes the United States a far more expensive travel destination for most, forcing travelers to choose more affordable getaway destinations.

How It Affects You

Fewer visitors mean fewer jobs, especially in service-based sectors. If you work in a hotel, restaurant, theme park, retail shop, or as a driver or tour guide, this decline could mean fewer hours, smaller tips, or even layoffs.

Local governments that rely on tourism taxes to fund public services will also feel the crunch. That could translate to budget cuts for things like parks, transit, or public safety. Even if you’re not directly involved in tourism, your community probably is in some way.

But the bigger concern would be if this downward trend continues, as the damage will go far beyond a single year's revenue loss. A sustained drop in international tourism could reshape entire sectors of the U.S. economy. Small business may shut down. The hospitality workforce may shrink. America’s global reputation could suffer long-term harm.

Once travelers form new habits and loyalties with other destinations, winning them back becomes exponentially harder. The longer this slide continues, the more difficult, and expensive, it will be to reverse.