U.S. Tourism Faces $29 Billion Loss as Number of International Visitors Slumps
While global tourism is experiencing a strong rebound in 2025, the United States is notably lagging behind, facing a projected loss of up to $29 billion in international visitor spending. According to the World Travel & Tourism Council (WTTC), the U.S. is the only country among 184 analyzed expected to see a decline in foreign tourism revenue this year.
Initially, Tourism Economics, a division of Oxford Economics, forecasted a 9% increase in international inbound travel to the U.S., which would have generated an additional $16.3 billion for the economy. However, the firm has now revised its estimate to an 8.2% year-over-year decline, resulting in a revenue gap of between $25 and $29 billion, depending on the model used.
This dramatic turnaround is largely attributed to what analysts are calling “sentiment headwinds”—a mix of political and policy-related factors that are driving tourists away. Among the most affected source markets are Canada, with a projected 20.2% drop in visitors, and Western Europe, down 4.9%.
Trump Policies Driving Tourists Away
Industry experts point to the policies and rhetoric of President Donald Trump as major contributors to the decline. Travel bans, harsh immigration enforcement, tariff wars, and inflammatory political discourse have created what WTTC President Julia Simpson describes as a perception that the U.S. has "put up the 'closed' sign."
The situation is especially dire with Canadian travelers, who accounted for nearly 25% of all international visitors to the U.S. in 2024. Canadian spending reached $20.5 billion last year, but recent months have seen plunging arrival numbers, with a 38% drop by car and 24% by air in May alone.
Meanwhile, American travelers are also feeling the effects. News outlets report a rise in concerns among Americans abroad, fearing hostility or retaliation due to U.S. foreign policy. A Global Rescue survey in March found that 72% of North American respondents believe Americans are viewed more negatively abroad in 2025.
At the same time, some citizens are worried about retaliatory treatment by U.S. Customs and Border Protection (CBP) upon re-entry, especially after posting anti-Trump content online. The ACLU has issued multiple warnings about CBP searches of phones, laptops, and other devices. Notable incidents include the detention of influencer Hasan Piker at Chicago O’Hare and a political consultant held at a U.S. airport allegedly over pro-Biden gear.
Despite these alarming trends, the U.S. government has taken steps in the opposite direction, slashing the budget for Brand USA, the national destination marketing organization, from $100 million to just $20 million. The U.S. Travel Association warned that for every dollar spent by Brand USA, $25 are added to the U.S. economy, and such drastic cuts could severely damage every sector of the travel industry.
“This is a wake-up call for the U.S. government,” said Julia Simpson. Without immediate efforts to restore international traveler confidence, the U.S. could take years just to return to pre-pandemic levels of tourism revenue. For now, the combination of restrictive policies, negative global sentiment, and underfunded promotion is making the U.S. increasingly unattractive to foreign visitors, threatening millions of tourism-related jobs across the country.
