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US tourism takes an $8 billion hit as foreign visitor numbers fall in 2025

America’s tourism slump is not just hurting hotels and airlines. Fewer foreign visitors could weaken the US economy, global image and soft-power influence.

By Sarwesh Sri Bardhan

May 25, 2026 23:04 IST

The United States drew fewer foreign visitors in 2025, with the World Travel and Tourism Council (WTTC) saying visitor numbers fell 5.5% from 2024 even as 80 million more people traveled internationally.

The council said international visitor spending in the US slipped 4.6% to $176 billion, with a decline in foreign visitors, which underscores a broader slowdown in inbound travel.

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The northern route has cooled

Canada has emerged as the biggest drag on US tourism. Arrivals from Canada, Mexico, and Europe all weakened, with roughly 4 million fewer international visitors in 2025 and more than $8 billion in lost foreign visitor spending.

The data from mobile tracking firm Cuebiq suggested Canadian travel to major U.S. cities may have fallen by as much as 42%, far steeper than the official estimate of a 25% decline in border crossings.

Policy concerns have clouded the picture

Industry officials and analysts pointed to politics, border enforcement, and the tone of US policy as important factors.

WTTC president and CEO Gloria Guevara linked the shift to concerns including US anti-immigration policies, which she said were pushing some travelers toward destinations such as Spain, France, and Japan.

Guevara also said the U.S. should “change perception and position the U.S. as a welcoming destination,” while Harvard Kennedy School faculty chair Juliette Kayyem warned, “The long-term harm is that the world will not know America.”

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Domestic demand keeps the market afloat

Despite the downturn, the U.S. remains the world’s largest travel and tourism market, helped by strong domestic demand.

WTTC said domestic visitor spending stayed resilient at $1.54 trillion in 2025, while the US Travel Association projected international inbound spending would edge up 1.6% to $178 billion in 2026, supported in part by major events including the FIFA World Cup.

Even so, the association said inbound visits remain sensitive to policy conditions, global sentiment, and geopolitical stability, suggesting the recovery may be uneven.

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