Inbound travel to the United States is showing renewed signs of weakness. According to the latest data from the National Travel and Tourism Office (NTTO), non-resident air arrivals fell 4.9% year over year in July 2025, while overseas visitors declined 3.1%.

That same month, international travelers spent US$20.6 billion on transportation, lodging and tourism-related activities within the U.S., a nearly 1% drop compared to July 2024. In contrast, U.S. residents spent about US$21.6 billion traveling abroad, creating a US$942 million travel-services deficit.

The World Travel & Tourism Council (WTTC) projects that international visitor spending in the U.S. may fall to just under US$169 billion in 2025, down from US$181 billion in 2024—an estimated loss of US$12.5 billion.

Industry analysts point to a stronger U.S. dollar, extended visa wait times and cuts to promotional funding, including Brand USA, as factors undermining the country’s competitiveness. While rival destinations in Europe, Latin America and the Caribbean are stepping up their international marketing, the U.S. risks losing further market share at a time when it is preparing to host major global events, including the 2026 FIFA World Cup.

Despite these headwinds, domestic travel remains robust, with July hotel occupancy reaching its highest level since 2019. However, U.S. tourism leaders face a pressing challenge: revitalizing America’s image abroad and strengthening inbound travel ahead of the coming decade.