WTTC: U.S. loses, Mexico gains in tourism

WTTC (World Travel and Tourism Council) expects that geopolitical changes will profoundly reshape tourism flows in North America in 2025.

The institution is a leading force in tourism and its expertise is undisputed. WTTC represents the global travel & tourism private sector. Its structure includes over 200 CEOs, chairpersons, and presidents of the world’s leading travel & tourism companies.

In its latest Economic Impact Research released in May, WTTC predicts a sharp contraction in international revenues from travel and tourism in the United States. The U.S. is indeed on track to lose a staggering USD12.5 billion in international visitor spending this year. Spending projections to the U.S. forecast a fall to just under USD169 billion this year, down from $181 billion in 2024.

This significant shortfall represents a 22.5% decline compared to the previous peak. According to the study, the U.S, the largest Travel & Tourism sector in the world, is the only country among 184 economies analyzed by WTTC and Oxford Economics, forecast to see international visitor spending decline in 2025.

Major inbound markets to the U.S. down

The growing perception of a U.S. administration being hostile to foreign visitors is taking its toll on arrivals. According to the U.S. Department of Commerce, international arrivals data for May 2025 reveal a sharp and widespread drop in inbound travel from many of the country’s key source markets.

Denmark saw the largest contraction at -20.5%, followed by Germany (-18.7%), Chile (-15.3%), Egypt (-13.8%), the Netherlands (-11.6%) and South Korea (-11.1%). From the top 20 inbound markets to the U.S., nine recorded a decline.

As widely expected, the Canadian market is drying up, with early summer bookings down over 20% compared to last year. In April, Canadian arrivals declined by a staggering 20.5%!

Meanwhile, the U.S. Department of Commerce highlights growth in arrivals for three major European markets in May: the UK is up by 2.1% , Spain by 3.6% and Italy by 10%.

In 2024, nearly 90% of all tourism spending came from domestic travel, with Americans holidaying at home in record numbers.

But this heavy reliance on homegrown tourism is masking a serious vulnerability according to WTTC. The international market is where the real growth lies, and the U.S. is losing its crown.

For Julia Simpson, WTTC President & CEO, “this is a wake-up call for the U.S. government. The world’s biggest travel & tourism economy is heading in the wrong direction, not because of a lack of demand, but because of a failure to act. While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign.”

Mexico tourism shines more than ever

Meanwhile, it is all smiles however for Mexico tourism. WTTC newest report for Mexico, released in June, estimates that Mexico’s tourism sector will reach a new historic high. In 2025, travel and tourism will bring a contribution of 281 billion dollars to the national GDP. This is equivalent to 15.1% of the country’s GDP.

Back to 2024, tourism in Mexico already reached a historic high. The sector contributed US$274.4 billion to GDP, representing 14.9% of the national GDP, and employed 7.7 million people, equivalent to 13% of the employed population.

International spending reached consequently 35.6 billion dollars, a 4.5% growth over the previous year. While domestic tourism spending reached 206 billion dollars.

The expected growth in 2025 once again consolidates the sector as a pillar for the development of the national economy, with an estimated year-over-year increase of 2.4%.

In the latest WTTC/Oxford Economics report, tourism would employ close to 8 million jobs in Mexico by year-end. Likewise, international visitor spending would reach US$39.6 billion, up 7.5% over 2019. Domestic tourism spending would rise to US$209.9 billion, 9.9% above previous highs.

WTTC Simpson tells: “Mexico continues to consolidate its position as a global tourism powerhouse. With a clear tourism policy, growing connectivity and a diversity of unique destinations, Mexico is well positioned to lead the future of tourism in the Americas.”

WTTC forecasts that travel and tourism in North America will contribute $3 trillion to GDP. This represents 8.8% of the regional economy this year. The sector is expected to contribute 30.3 million jobs, accounting for 12.4% of all jobs in the region.

International visitor spending could exceed US$233 billion this year. Meanwhile, domestic spending is also expected to reach US$1.8 trillion. It would represent a year-on-year growth of 1.4%.

Related News Stories:  WTTC tourism forecasts contraction in the U.S. and rise in Mexico     TravelMole     Alaska Airlines flight in emergency landing after losing tire     Uber for Business - TravelMole     News Archive - Page 9495 of 9496 - TravelMole     Carnival Cruise Line to mark USA's 250th anniversary - TravelMole     Politics impacts demand for Canadians' US travel     American Airlines adds 30th Mexico destination     PLAY Airlines pulling out of US market     Former China airline boss named in corruption probe