The United States is expected to be the only country to see a drop in international tourist spending in 2025, with a projected loss of $12.5 billion, according to a recent World Travel & Tourism Council study analyzing tourism’s economic impact across 184 countries.
Adding more to the worry, the actual losses will be significantly larger, given that Tourism Economics, a division of Oxford Economics, had originally forecasted the U.S. would see a 9% jump in international inbound travel in 2025. A 9% increase would have equated to a boost of about $16.3 billion in revenue for the U.S. economy. Instead, Tourism Economics has revised its baseline forecast to a year-over-year decline of 8.2%—a significant 17.2% variance from its original 9% increase.
ALSO READ: A dreamy European vacation right now might actually be a tourist's worst nightmare
From the anticipated $16.3 billion increase in revenue to a loss of between $8.3 billion (Tourism Economics estimate) and $12.5 billion (WTTC estimate), the U.S. is facing a shortfall of $25 billion to $29 billion this year, as per a Forbes report.
“While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign,” Julia Simpson, president and CEO of WTTC, said in a statement.
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US President Donald Trump’s tariffs, travel restrictions, aggressive rhetoric, and strict immigration measures have collectively discouraged international visitors, with no clear signs of a shift in policy direction. “Given we’re halfway through the year and we’ve seen these impacts, we don't know when the stiffest headwind is, but I think it does stay sustained,” Aran Ryan, director of industry studies at Tourism Economics, told Forbes.
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“This is a wake-up call for the U.S. government,” Simpson said. “Without urgent action to restore international traveler confidence, it could take several years for the U.S. just to return to pre-pandemic levels of international visitor spend.”
Yet the Trump administration and Republican party do not appear to be taking note, said Forbes. A Senate committee led by Senator Ted Cruz (R-Tex.) slashed the budget of Brand USA, the country’s public-private destination marketing organization, from $100 million to $20 million.
The U.S. Travel Association said it is “deeply concerned,” claiming that “for every $1 spent on marketing, Brand USA adds $25 to the U.S. economy,” and warning such drastic cuts will “significantly impact every sector of our industry.”
Adding more to the worry, the actual losses will be significantly larger, given that Tourism Economics, a division of Oxford Economics, had originally forecasted the U.S. would see a 9% jump in international inbound travel in 2025. A 9% increase would have equated to a boost of about $16.3 billion in revenue for the U.S. economy. Instead, Tourism Economics has revised its baseline forecast to a year-over-year decline of 8.2%—a significant 17.2% variance from its original 9% increase.
ALSO READ: A dreamy European vacation right now might actually be a tourist's worst nightmare
From the anticipated $16.3 billion increase in revenue to a loss of between $8.3 billion (Tourism Economics estimate) and $12.5 billion (WTTC estimate), the U.S. is facing a shortfall of $25 billion to $29 billion this year, as per a Forbes report.
“While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign,” Julia Simpson, president and CEO of WTTC, said in a statement.
ALSO READ: What the Middle East’s Schengen-style GCC Unified Visa means for travellers
US President Donald Trump’s tariffs, travel restrictions, aggressive rhetoric, and strict immigration measures have collectively discouraged international visitors, with no clear signs of a shift in policy direction. “Given we’re halfway through the year and we’ve seen these impacts, we don't know when the stiffest headwind is, but I think it does stay sustained,” Aran Ryan, director of industry studies at Tourism Economics, told Forbes.
ALSO READ: How immigration could muddy the job numbers in US
“This is a wake-up call for the U.S. government,” Simpson said. “Without urgent action to restore international traveler confidence, it could take several years for the U.S. just to return to pre-pandemic levels of international visitor spend.”
Yet the Trump administration and Republican party do not appear to be taking note, said Forbes. A Senate committee led by Senator Ted Cruz (R-Tex.) slashed the budget of Brand USA, the country’s public-private destination marketing organization, from $100 million to $20 million.
The U.S. Travel Association said it is “deeply concerned,” claiming that “for every $1 spent on marketing, Brand USA adds $25 to the U.S. economy,” and warning such drastic cuts will “significantly impact every sector of our industry.”
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