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Tourists Abandon U.S., Triggering Projected $12.5 Billion Spending Drop

By Jake Beardslee · May 13, 2025

Projected $12.5 Billion Drop in U.S. Travel Spending for 2025

International travel spending in the United States is expected to drop by $12.5 billion, or about 7%, in 2025, according to new projections from the World Travel and Tourism Council (WTTC).  Brett Sayles / Pexels

Visa Hurdles and Politics Add to Decline in Tourist Interest

While the strong U.S. dollar plays a role, industry leaders point to a broader mix of deterrents including visa hurdles, strict entry procedures, and what some describe as an unwelcoming political climate under President Donald Trump.  Alex P / Pexels

WTTC: U.S. Is the Only Country Seeing Absolute Drop in Visitor Spending

“The U.S. is definitely losing its crown in this area,” said WTTC CEO Julia Simpson, according to The Independent. “Of 184 countries, the U.S. is the only one that's seeing an absolute decline in international visitor spending.”  Kaboompics.com / Pexels

Strong Dollar Makes U.S. Vacations Less Attractive for Foreign Travelers

Simpson noted that spending from international tourists is expected to fall below $169 billion this year, down from $181 billion in 2024 and 22% below the country’s 2019 peak. She attributed part of the dip to the strength of the dollar, which has made American vacations comparatively expensive.  Shamia Casiano / Pexels

Germany Issues Warning as U.S. Border Policies Grow Stricter

Germany recently revised its U.S. travel advisory to stress that a visa or waiver does not guarantee entry, following several detentions of German citizens at the U.S. border. The Trump administration has also implemented stricter entry requirements, mandating that all foreigners aged 14 and over register and submit fingerprints if staying more than 30 days. This policy now includes Canadians, who previously had more lenient terms.  Pixabay / Pexels

“Closed for Business” Message Hurting U.S. Travel Appeal, Simpson Says

“The rest of the world are putting up open signs and getting people to come and see their country,” Simpson said. “The U.S. at the minute has firmly got a ‘we're not open for business, closed’ sign, which is a great shame.”  lil artsy / Pexels

Domestic Tourists Dominate, But Foreign Visitors Spend More

Although domestic travelers still account for 90% of U.S. tourism spending, according to The New York Times, international visitors are far more lucrative. According to the U.S. Travel Association, Canadians spend three times more than Americans on U.S. trips, and overseas travelers spend seven to eight times more.  Thomas K / Pexels

Visits from Canada, Mexico, and Europe Plummet Despite April Rebound

Visits from Canada and Mexico, the U.S.’s largest sources of inbound tourism, have dropped by roughly 20% year-over-year. There are also noted declines in travel from the U.K., Germany, and South Korea. While overseas visitation fell 12% in March, it rebounded slightly with an 8% increase in April, according to the U.S. National Travel and Tourism Office.  Ashim D’Silva / Unsplash