The United States is bracing itself, about to take a $12.5 billion hit in international travel spending this year. You heard that right, folks, billion with a “B”, according to the latest Economic Impact Research by the World Travel & Tourism Council (WTTC). They released their findings this past Tuesday, like a wind gust sweeping across the plains.
The estimated $169 billion in U.S. international travel spending is down by a whopping 22.5% from the zenith of $217.4 billion in 2019. WTTC’s President and CEO, Julia Simpson, leans into the belief that this downward trajectory is fueled by a sentiment of unwelcome, even safety concerns, following the Trump administration’s policies.
Simpson points out, “The near neighbors, Canada and Mexico, are not traveling.” This decrease in travelers, she suggests, is a byproduct of immigration crackdowns, tariffs, and politically charged rhetoric.
The United States stands alone, the only nation among the 184 economies studied by the WTTC and the global economic advisory firm Oxford Economics to predict a decline in international visitors this year. Meanwhile, other countries like China are rolling out the welcome mat, relaxing visa requirements to lure in international tourists.
The United States still holds the title for the world’s largest tourism and travel market, contributing a staggering $2.36 trillion to the economy last year. But hold your horses – 90% of that tourism spending in 2024 came from domestic tourists. The WTTC argues that the U.S. is missing the boat on international tourism, with foreign travelers shelling out an average of $4,000 per trip, eight times more than domestic folks, according to the U.S. Travel Association.
“Without urgent action to restore international traveler confidence, it could take several years for the U.S. just to return to prepandemic levels of international visitor spend,” Simpson warns. The stakes couldn’t be higher, as we reach a fork in the road of global tourism.
