Unrestricted Movement to the United States from Abroad

The U.S. travel industry is facing a significant challenge as international visitor spending declines, with serious financial implications for the nation's economy. According to the U.S. Travel Association, a 1% decrease in international visitor spending equates to a loss of $1.8 billion in export revenue for the year.

Tourism Economics forecasts a 6% decline in international tourism revenue in the United States in 2025 compared to 2024, resulting in an estimated loss of about $6 billion in direct revenue. This decline is expected to have a ripple effect, with an additional $3 billion in indirect spending losses, particularly impacting cities like New York.

In 2023, total tourism output in the U.S. was $2.64 trillion, making up 3.03% of U.S. GDP. Coastal states like North and South Carolina are at greater risk during hurricane season, but tourism can provide a lifeline for local economies in the aftermath of natural disasters.

The decline in international tourism is a current economic priority for the U.S. Department of Commerce. The department considers inbound travel to the U.S. a vital impact on the economy, supporting 10.5 million jobs directly and indirectly in 2023.

International travelers inbound to the U.S. spend an average of $4,000 per trip, which is eight times more than domestic travelers. In Charleston, South Carolina, tourism drives 25% of the local economy. Communities that border Canada often rely on extra foot traffic from Canadian visitors to support local businesses.

However, the decline in international tourism is not limited to 2025. In 2020, the U.S. had 7 million fewer international visitors compared to 2019. Tourism Economics forecasts a loss of $9 billion in spending from a 9.4% decline in international arrivals to the U.S. in 2022.

Geoff Freeman, chief executive of the U.S. Travel Association, emphasises the urgent need for a coordinated marketing strategy to improve the perception of the U.S. as a travel destination. Oxford Economics initially predicted a 16% increase in spending in 2025, but have since revised their forecast to a decline of 8.7%, with $8.5 billion in less spending compared to 2024.

If the current travel trends continue, the U.S. will lose a total of $21 billion in travel-related exports this year according to the U.S. Travel Association. The World Travel & Tourism Council predicts a decline in international travel and tourism spending in the United States in 2025 compared to 2024, estimating a loss of $12.5 billion.

The majority of tourism spending in the U.S. occurs through domestic travel. However, the decline in international tourism is still a significant concern for the U.S. economy, potentially impacting businesses, consumers, and communities across the nation.