WTTC: US tourism set for $12.5 billion decline this year
The World Travel & Tourism Council is forecasting a significant decline in tourism spending by international travelers in the US this year.
It predicts a drop of up to $12.5 billion in travel revenue in 2025.
That is potentially putting nearly 100,000 tourism jobs at risk.
The WTTC study in conjunction with tourism data partner Oxford Economics estimates tourism receipts to fall under $169 billion by the end of 2025.
It marks a decline of about 7% and down by 22% on 2019 levels.
The WTTC says it is the only nation out of 184 global economies analyzed by WTTC expected to decline in tourism revenue this year.
“Other countries are really rolling out the welcome mat, and it feels like the US is putting up a ‘we are closed’ sign at their doorway,” says WTTC President and Chief Executive Officer Julia Simpson.
“The U.S. travel and tourism sector is the biggest sector globally compared to any other country, worth almost $2.6 trillion.”
Taking into consideration direct and indirect spending it represents about 9% of the US economy and employs 20 million people.
It creates about $585 billion in tax revenues each year.
The WTTC says traveler sentiment has shifted due to the political rhetoric of the Trump Administration and stories of travelers being held at immigration for sometimes spurious reasons.
“What we are seeing now is a sentiment shift that’s really very sad,” Simpson said.
“Legislators need not confuse the tourism sector with issues around illegal immigration. A sophisticated system can balance both without turning the country into an island that no one wants to visit.”
The latest tourism data for March 2025 shows a decline in arrivals for all of America’s major source markets.
Germany arrivals are down 28% and the UK15% year-over-year.
There are also significant declines from South Korea, Spain and Ireland.
In New York state alone, officials are forecasting a decline in tourism revenues of about $4 billion with about 800,000 fewer international visitors.
The WTTC now thinks US tourism won’t fully recover to pre-pandemic levels until at least 2030, even with the America 250 celebrations next year, the FIFA World Cup and the Olympics.
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