The United States tourism industry faces a growing challenge as international visitor spending is projected to decline by nearly $11 billion in 2026, according to a new forecast from the U.S. Travel Association. The inflation-adjusted drop of 6.3% would bring international visitor spending down to approximately $163 billion, highlighting the difficulties the country faces in attracting overseas travelers.

The outlook also points to a 0.7% decrease in total U.S. travel spending, which is expected to reach $1.35 trillion this year. This comes despite Americans taking a record 2.44 billion domestic trips, demonstrating the contrast between strong domestic travel activity and weakening international demand.

Rising travel costs are another concern. Prices across the sector are projected to increase 7.2% in 2026, more than twice the expected overall inflation rate of 3.4%. Meanwhile, international arrivals are not expected to return to their 2019 levels until 2030.

The slowdown could particularly affect major destinations that depend heavily on international visitors, including New York, Miami, Los Angeles, Orlando and San Francisco. The travel industry supports more than 15 million jobs in the United States and generates approximately $92 billion in state and local tax revenue.

U.S. Travel Association President and CEO Geoff Freeman warned that the decline has consequences for workers and communities across the country. The organization is urging Congress to address visa processing delays, eliminate unnecessary fees and reduce other barriers that discourage international travel. It is also calling for the reauthorization of Brand USA, the country's destination marketing organization, with full funding restored in 2027.

The association has additionally raised concerns about possible disruptions during the holiday travel season, urging lawmakers to guarantee uninterrupted pay for Transportation Security Administration (TSA) officers and air traffic controllers during future government funding lapses. Congress faces a December 11 funding deadline, adding urgency to the industry's calls for action.