The United States is projected to see a 7% drop in international travel spending in 2025—equivalent to $12.5 billion, according to a new report from the World Travel & Tourism Council (WTTC). This decline positions the U.S. as the only country among 184 analyzed by the WTTC to experience an absolute decrease in spending by international visitors.

Julia Simpson, WTTC President and CEO, attributes the downturn to a combination of economic and political factors, including the strength of the U.S. dollar and border security concerns, which have deterred foreign travelers. "The U.S. is definitely losing its crown in this area," Simpson said, highlighting how other nations are actively promoting openness to international tourism.

The U.S., which remains the largest travel and tourism economy globally, is forecasted to earn less than $169 billion from international tourists in 2025. This is down from $181 billion in 2024 and still 22% below the pre-pandemic peak in 2019.

Simpson emphasized that beyond currency concerns, perceived unwelcoming policies are creating a chilling effect. These include the requirement for all foreign nationals aged 14 and older to register and provide fingerprints for extended stays, even affecting Canadians, who previously enjoyed visa-free visits of up to six months.

Recent incidents, such as the detainment of German travelers at the U.S. border, prompted Germany to update its travel advisory, warning citizens that having a visa or ESTA does not guarantee entry.

"The rest of the world are putting up 'open' signs," Simpson told Reuters. "The U.S. at the minute has firmly got a 'we're not open for business' sign, which is a great shame."

Despite domestic tourism accounting for 90% of U.S. travel spending, international visitors contribute significantly more on a per capita basis. Canadian travelers spend three times more than Americans on U.S. vacations, while overseas tourists typically spend seven to eight times more.

Inbound travel from Canada and Mexico, the top two international source markets, has declined by around 20% year-over-year, with similar drops seen from Britain, Germany, and South Korea.

According to data from the U.S. National Travel and Tourism Office, overseas arrivals fell 12% in March, though they rebounded by 8% in April. Still, projections for New York State alone show a loss of $4 billion in tourism revenue and 800,000 fewer international visitors this year.

The WTTC warns that full recovery to pre-pandemic international tourism levels in the U.S. may not happen until 2030, despite upcoming events like America 250 celebrations, the FIFA World Cup, and the Olympic Games.