US economy to lose $12.5 billion in international travel spend this year, warns global tourism body

Dubai: The United States alone is among 184 global economies that could see a decline in international travel spending this year, according to the World Travel and Tourism Council (WTTC).

The US economy is slated to lose a whopping $12.5 billion in international travel spend this year. The WTTC – a global body representing the travel and tourism private sector – said in its Economic Impact Research that international visitor spending to the US is projected to fall to just under $169 billion this year, down from $181 billion in 2024.

This significant shortfall represents a 22.5 per cent decline compared to the previous peak. 

The loss won't be felt by travel and tourism alone, said WTTC, explaining that this represents a direct blow to the US economy, impacting communities, jobs, and businesses from coast to coast.

According to the study, the US, the world's most extensive travel and tourism sector, is the only country among 184 economies analysed by WTTC and Oxford Economics forecast to see international visitor spending decline in 2025.

WTTC President and CEO Julia Simpson said, "This is a wake-up call for the US government. 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. While other nations are rolling out the welcome mat, the US government is putting up the 'closed' sign."

She added, "Without urgent action to restore international traveller confidence, it could take several years for the U.S. to return to pre-pandemic levels of international visitor spend, not even the peak from 10 years ago."

WTTC's outlook for the global tourism industry for 2025 has been rather robust despite economic headwinds. The trade body projected strong growth for 2025 and said travellers are expected to spend more than ever in its 2025 Economic Impact Research (EIR) that it launched in April 2025. The research paper, done in partnership with Oxford Economics, was announced before US President Donald Trump announced crippling tariffs on most nations it trades with.  

Back then, Simpson told the media that the tariffs may not impact the travel industry. However, her recent statements about the US economy are: "This is about growth in the U.S. economy - it is doable, but it needs leadership from DC," she added.

From the UAE, travel demand to the United States has remained 'consistent' since the start of this year, according to airlines and hotel companies.

In 2024, nearly 90 per cent of all tourism spending came from domestic travel, with Americans holidaying at home in record numbers. However, this heavy reliance on homegrown tourism is masking a serious vulnerability; the real growth lies in the international market, and the US is losing its crown, it 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:

As widely expected, the Canadian market is drying up, with early summer bookings down over 20 per cent compared to last year. This is more than a dip. It's a wake-up call.

While other countries are powering forward, the US is slipping backward. Relying on domestic travellers might have kept the lights on during the pandemic. Still, without a bold international recovery plan, the world's biggest Travel & Tourism economy risks falling further behind.

The economic cost of inaction is clear. Last year, travel and tourism contributed $2.6 trillion to the economy and supported more than 20 million jobs. It also contributed more than $585 billion in tax revenue annually, accounting for almost 7 per cent 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.

WTTC warned 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 $217.4 billion in revenue and supported almost 18 million jobs across America. Today, that legacy is under threat, warned WTTC.

WTTC called for immediate action to address travel access, rebuild international marketing efforts, and restore global traveller confidence in the US.