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The Independent
14-05-2025
- Business
- The Independent
Tourists are cancelling trips to the US – here are three reasons why
International travel spending in the United States is projected to fall by $12.5 billion, or seven per cent, in 2025, according to the World Travel and Tourism Council (WTTC). WTTC CEO Julia Simpson said the unpopular policies from the administration of President Donald Trump, fear of being stopped at the border and an unfavourable exchange rate had pushed international tourists towards alternative destinations. "Of 184 countries, the U.S. is the only one that's seeing an absolute decline in international visitor spending," Simpson said. "The U.S. is definitely losing its crown in this area." The U.S. is the largest travel and tourism economy globally, she said. However, international visitor spending in the country is projected to fall under $169 billion this year, down from $181 billion in 2024 and 22 per cent below its previous peak in 2019. A strong dollar, which makes U.S. vacations more expensive, caused a decline in foreign travel spending in the country in 2024, Simpson said, but now politics and worries about crossing the border were also weighing on U.S. visitation figures. In March, Germany updated its U.S. travel advisory to emphasise that a visa or entry waiver does not guarantee entry after several Germans were detained at the border. The Trump administration requires all foreigners 14 or older to register and submit fingerprints if they stay beyond 30 days. This includes Canadians, who previously could visit for up to six months without a visa. "The rest of the world are putting up open signs and getting people to come and see their country," Simpson said. "The U.S. at the minute has firmly got a 'we're not open for business, closed' sign, which is a great shame." While 90 per cent of U.S. travel and tourism spending comes from domestic tourists, Canadian travellers spend three times more on U.S. vacations than Americans, according to the U.S. Travel Association. Overseas visitors spend seven to eight times more than U.S. travellers. Travel from Canada and Mexico, the largest source of inbound visitors to the U.S., is down about 20 per cent year-over-year, the organisation said. Visits from British, German and South Korean travellers are also trending lower. Overall, overseas travel to the U.S. fell about 12 per cent year-over-year in March but rose 8 per cent in April, according to data from the U.S. National Travel and Tourism Office.
Travel Weekly
13-05-2025
- Business
- Travel Weekly
WTTC calls projected decline in international visitors 'a wake-up call' for U.S.
The U.S. is on track to lose $12.5 billion in international visitor spending this year and is projected to be the only country among the 184 analyzed that is forecast to see inbound visitor spending decline in 2025, the World Travel & Tourism Council (WTTC) said today. The latest Economic Impact Research from the WTTC and Oxford Economics found that international visitor spending to the U.S. is projected to fall to just under $169 billion this year, down from $181 billion in 2024, a 22.5% decline compared to the previous peak. "The U.S. is welcoming fewer visitors from its neighbors and countries further afield, which is a clear indicator that the global appeal of the U.S. is slipping," the organization said. • On the Folo podcast: The state of travel today The downturn, it added, will impact "communities, jobs and businesses from coast to coast." "This is a wake-up call for the U.S. government," Julia Simpson, the WTTC's CEO, said in a statement. "The world's biggest travel and 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." The concern echoes that of the U.S. Travel Association, whose CEO, Geoff Freeman, recently said that the $50 billion travel trade surplus the U.S. enjoyed 10 years ago has swung to a $50 billion deficit, a $100 billion reversal that threatens to get worse, and called for a welcoming message to potential travelers. A long road back? Simpson added that 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, not even the peak from 10 years ago. "This is about growth in the U.S. economy -- it is doable, but it needs leadership from DC," she said. Simpson did not cite any of the probable reasons for the downturn, such as the tariffs and tariff threats on countries around the world; President Trump's rhetoric about making Canada the 51st U.S. state; and concerns from European governments about the detainment of European tourists at the Canada and Mexico borders. The WTTC said that U.S. Department of Commerce numbers from March show a "sharp and widespread drop in inbound travel from many of the country's key source markets, such as the U.K. down nearly 15% year over year, Germany down 28%, South Korea down 15% and other key markets such as Spain, Colombia, Ireland, Ecuador and the Dominican Republic all seeing double-digit drops between 24% and 33%. "As widely expected, the Canadian market is drying up, with early summer bookings down over 20% compared to last year," the report said. "This is more than a dip. It's a wake-up call." U.S. is 'losing its crown' The WTTC said that in 2024, nearly 90% of all tourism spending came from domestic travel, with Americans vacationing at home in record numbers. The organization said this heavy reliance on "homegrown tourism is masking a serious vulnerability: The international market is where the real growth lies, and the U.S. is losing its crown." In 2019, the WTTC said, international visitors to the U.S. generated $217.4 billion in revenue and supported almost 18 million jobs. "Today, that legacy is under threat," the organization said. "WTTC is calling for immediate action to address travel access, rebuild international marketing efforts and restore global traveler confidence in the U.S."
The Independent
13-05-2025
- Business
- The Independent
Tourists are cancelling trips to the US - here are three reasons why
International travel spending in the United States is projected to fall by $12.5 billion, or seven per cent, in 2025, according to the World Travel and Tourism Council (WTTC). WTTC CEO Julia Simpson said the unpopular policies from the administration of President Donald Trump, fear of being stopped at the border and an unfavourable exchange rate had pushed international tourists towards alternative destinations. "Of 184 countries, the U.S. is the only one that's seeing an absolute decline in international visitor spending," Simpson said. "The U.S. is definitely losing its crown in this area." The U.S. is the largest travel and tourism economy globally, she said. However, international visitor spending in the country is projected to fall under $169 billion this year, down from $181 billion in 2024 and 22 per cent below its previous peak in 2019. A strong dollar, which makes U.S. vacations more expensive, caused a decline in foreign travel spending in the country in 2024, Simpson said, but now politics and worries about crossing the border were also weighing on U.S. visitation figures. In March, Germany updated its U.S. travel advisory to emphasise that a visa or entry waiver does not guarantee entry after several Germans were detained at the border. The Trump administration requires all foreigners 14 or older to register and submit fingerprints if they stay beyond 30 days. This includes Canadians, who previously could visit for up to six months without a visa. "The rest of the world are putting up open signs and getting people to come and see their country," Simpson said. "The U.S. at the minute has firmly got a 'we're not open for business, closed' sign, which is a great shame." While 90 per cent of U.S. travel and tourism spending comes from domestic tourists, Canadian travellers spend three times more on U.S. vacations than Americans, according to the U.S. Travel Association. Overseas visitors spend seven to eight times more than U.S. travellers. Travel from Canada and Mexico, the largest source of inbound visitors to the U.S., is down about 20 per cent year-over-year, the organisation said. Visits from British, German and South Korean travellers are also trending lower. Overall, overseas travel to the U.S. fell about 12 per cent year-over-year in March but rose 8 per cent in April, according to data from the U.S. National Travel and Tourism Office.
Yahoo
13-05-2025
- Business
- Yahoo
The US Is on Track to Lose $12 Billion in Travel Revenue in 2025
(Bloomberg) -- The US is on track for a very bad tourism year. A New Central Park Amenity, Tailored to Its East Harlem Neighbors As Trump Reshapes Housing Policy, Renters Face Rollback of Rights What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration According to new data from the World Travel & Tourism Council (WTTC), shared exclusively with Bloomberg, the country is set to lose $12.5 billion in travel revenue in 2025, with visitor spending estimated to fall under $169 billion by year's end. The numbers represent a decline of around 7% in visitor spending year-over-year, and a decline of 22% since tourism reached its peak in the US in 2019. This puts the US in a league of its own. Out of 184 global economies analyzed by WTTC in conjunction with Oxford Economics, it's the only one projected to lose tourism dollars 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 consequences, Simpson says, could be devastating. 'The US travel and tourism sector is the biggest sector globally compared to any other country, worth almost $2.6 trillion,' she says, citing WTTC and Oxford Economics data. According to Simpson's data, direct and indirect tourism represents 9% of the American economy. (Visitor spending is one of the 'direct' parts of the travel economy, while 'indirect' contributions include the knock-on effects of increased spending by hospitality professionals.) The sector employs 20 million people and creates $585 billion in US tax dollars each year—7% of all tax revenue the US government receives. It's a 'major mainstay of the US economy,' she says. The issues the industry faces have been years in the making. The problems began in the Biden era as a result of Covid-era travel requirements that lingered longer than they did in most other nations. Then the soaring dollar started pricing people out. 'The Japanese used to visit the US a lot, but the strong dollar made it quite an expensive place,' Simpson says. 'Same with Europeans.' But now, she says, a shift in people's views is turning cracks in the American travel economy into chasms. According to international arrivals data from the US Department of Commerce, travelers are already shifting their behavior as a result of the current administration's 'America First' rhetoric and policy. 'What we are seeing now is a sentiment shift that's really very sad,' Simpson says. '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.' In March 2025, the most recent month for which data is available, arrivals were significantly down for all of the US's most robust visitor populations. UK arrivals were down 15% year-over-year; Germans were down 28%; South Korean trips declined by 15%; and other key source markets, including Spain, Ireland and the Dominican Republic, were down between 24% and 33%. The effects won't be felt evenly across the US, with the $12.5 billion deficit disproportionately affecting major US gateways as well as tourism areas along the Canadian border. Take New York City and the broader Empire State as an example. On May 8, the city's tourism agency reversed course on its positive outlook for 2025—the year it expected to finally rebound fully from the impact of the pandemic—to forecast that it would receive 400,000 fewer tourists and $4 billion less in tourism spending than it did in 2024. The latest projections for New York, accounting for a total of 64 million tourists this year, include estimates that 400,000 more domestic tourists—but 800,000 fewer international visitors—will visit the five boroughs. Tourists from abroad tend to stay longer and spend more, and in 2024 they represented half of the $51 billion that the city netted via tourism. According to Governor Kathy Hochul, this slump extends to regions upstate. Some 66% of businesses in New York's 'north country,' which juts out toward Ottawa and Montreal, have already felt a 'significant decrease' in Canadian bookings for 2025. In an April 29 press release, Hochul attributed that figure to President Donald Trump's '51st state' rhetoric and the impact of tariffs. Among those north country businesses, 26% have already adjusted staffing in response to the declines. The damage is profound. WTTC now forecasts that it will take until at least 2030 for US tourism to recover to pre-Covid levels. And that's if things don't get worse before they get better. People in the industry, she says, have taken note of proposed legislation that would raise the cost of the Electronic System for Travel Authorization (ESTA), which is required of all travelers who plan to come to the US from countries that participate in the Visa Waiver Program. It is currently $21 per traveler but could rise to $40 if the legislation is adopted. 'The thing about tourism is it's extremely resilient,' she says. 'If you push the right buttons, it will bounce back. But increasing the cost of an ESTA will only deter people further.' It's a cost for which the US can't easily compensate. Already, 90% of the US tourism economy is made up of domestic travel—Americans vacationing within the 50 states—making it a hard sector to grow. Meanwhile, Simpson adds, every other country is making it easier for people to come visit with new perks like digitized visas. 'India is gaining, the Middle East is gaining, China is gaining, Europe is doing quite well,' Simpson says. 'It's only Americans that are being left behind and losing out.' The Recession Chatter Is Getting Louder. Watch These Metrics US Border Towns Are Being Ravaged by Canada's Furious Boycott Two Million Meat Sticks a Day Isn't Enough for Chomps' CEO With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise How the Lizard King Built a Reptile Empire Selling $50,000 Geckos ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
