International travel spending in the United States is expected to decline by roughly 7%, or $12.5 billion, in 2025, as foreign tourists increasingly choose other destinations due to political concerns and the strength of the U.S. dollar, according to the World Travel and Tourism Council (WTTC).
Julia Simpson, CEO of the WTTC, highlighted that U.S. travel policies under former President Donald Trump’s administration, fears of being denied entry at the border, and an unfavorable exchange rate have discouraged many international travelers. She emphasized that among 184 countries, the U.S. is the only one experiencing a decline in international tourist spending. “The U.S. is losing its edge in global tourism,” Simpson said.
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Although the U.S. remains the world’s largest travel and tourism economy, spending by international visitors is projected to fall below $169 billion in 2025, a drop from $181 billion in 2024 and 22% less than the pre-pandemic peak in 2019.
The strong U.S. dollar has already impacted tourism by making American vacations costlier. Now, political factors and strict border control measures are further reducing the number of international arrivals.
Recent updates, such as Germany’s travel advisory, have highlighted the risk of being denied entry even with valid visas or waivers. The Trump-era requirement for all foreign nationals aged 14 and above to register and provide fingerprints if staying more than 30 days—extending even to Canadians—has raised additional concerns.
While the majority of tourism revenue in the U.S. comes from domestic travelers, international tourists, particularly Canadians, spend significantly more. Canadian visitors spend three times more than Americans, and overseas travelers spend seven to eight times more.
Visits from neighboring Canada and Mexico—the U.S.’s two largest sources of international tourists—have declined by about 20% year-over-year. Travel from countries such as the UK, Germany, and South Korea is also on the decline.
Although overseas tourism dropped by 12% in March, it did see a rebound of 8% in April, according to the U.S. National Travel and Tourism Office. Nonetheless, concerns remain as the U.S. appears less welcoming compared to other countries promoting open tourism.
