The United States is poised to face a $12.5 billion drop in travel revenue in 2025, according to fresh data released by the World Travel & Tourism Council (WTTC) in partnership with Oxford Economics. Visitor spending is expected to fall below $169 billion, a 7% decline from last year and 22% lower than the tourism peak seen in 2019.
This downturn sets the US apart as the only country among 184 global economies forecasted to lose tourism revenue this year. “While others are extending a warm welcome to travelers, the US appears to be closing its doors,” said Julia Simpson, President and CEO of WTTC.
Simpson emphasized the gravity of the situation, noting that the US travel and tourism sector—valued at nearly $2.6 trillion—is the world’s largest. The industry directly and indirectly supports 20 million American jobs and generates $585 billion in tax revenue annually, accounting for 7% of the government’s total income.
Much of this decline stems from long-standing issues. Pandemic-era travel restrictions persisted longer in the US than elsewhere, discouraging international travelers. The strength of the US dollar has also made it a costly destination, especially for visitors from Japan and Europe.
Now, a deeper shift is underway. Simpson warns that the current administration’s policies and rhetoric, particularly around “America First,” are discouraging global tourists. “There’s growing confusion between tourism and immigration policies,” she said, urging lawmakers to separate the two.
Domestic travel currently makes up 90% of the US tourism economy, leaving limited room for international growth. Meanwhile, countries like India, China, and those in the Middle East and Europe are actively simplifying entry with digitized visas and traveler-friendly policies. As Simpson put it, “The world is moving ahead, and the US risks being left behind.”
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Source: Finance.yahoo.com
