The loss in revenue from international travelers is expected to cost the U.S. economy $12.5 billion this year

Tourism to the United States has been on the decline, raising alarms among leaders who are increasingly anxious about its impact on the broader economy — especially during the critical summer stretch, when numerous towns and cities depend on foreign visitors to fuel local business. According to projections from the World Travel and Tourism Council, the U.S. is on track to experience a record $12.5 billion shortfall in international visitor spending in 2025. The sharp drop underscores the difficult road ahead for the U.S. tourism sector as it struggles to reclaim its pre-pandemic standing as the world’s top travel destination.

Domestic travel has remained resilient, but the overwhelming reliance on it has revealed a glaring vulnerability. In 2024, nearly 90% of all tourism dollars in the U.S. came from domestic travelers as Americans opted to vacation closer to home. While this surge in local travel provided temporary relief, it has also obscured the vital role international visitors play in bolstering the national economy.

Experts in the field argue that the real key to long-term tourism growth lies with international travel. The U.S. is steadily losing ground as a premier global destination, and unless substantial efforts are made to rebuild foreign visitor confidence, it may take years to return to the level of international spending seen before COVID-19. Some warn that without an aggressive push to reclaim its share of the global tourism market, the U.S. might never reach the peaks it enjoyed just a decade ago.

Meanwhile, international tourism globally has shown robust growth. Reports from the International Trade Administration indicate that inbound travel to the U.S. rose by 9.1% in 2024 compared to the year prior, suggesting there is still interest in visiting. But that growth has not been sufficient to compensate for losses projected in 2025. Many international travelers are now choosing alternative destinations, a trend that could ultimately cost the U.S. economy as much as $29 billion and jeopardize millions of jobs in the hospitality, transportation, and service sectors.

The economic fallout is being felt across the country, particularly in cities heavily dependent on foreign visitors. Business Travel News reports that U.S. hotel occupancy rates declined again in June year over year, marking the fourth month in a row of slumping numbers. With fewer international guests, hotels, restaurants, and tourist attractions are reporting shrinking revenues — forcing businesses to make tough decisions about staffing and operations.

This downturn comes at the worst possible time. Summer is typically when tourism peaks, offering a seasonal lifeline to local economies. Historically, international travelers have played a critical role in sustaining that surge, spending more and staying longer than their domestic counterparts. But with global travelers flocking elsewhere, the U.S. tourism industry finds itself fighting to remain competitive.

There is still a path forward, tourism leaders say — but it demands urgent action. They’re calling for targeted marketing campaigns abroad, smoother travel procedures, and efforts aimed squarely at restoring confidence in visiting the United States. Without those measures, however, analysts warn that a full recovery may be years away.

Until then, the broader economic consequences are difficult to ignore. As long as the slump in foreign tourism continues, communities that rely on visitors will face ongoing financial stress. The national recovery from the pandemic could stall further, with reduced tourism spending posing not only a loss in income, but a mounting threat to job stability and long-term economic momentum across the country.