Foreign travel spending in US to decline 7% in 2025, report says

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By Doyinsola Oladipo

NEW YORK (Reuters) -International travel spending in the United States is expected to decline about 7%, or $12.5 billion, in 2025 as politics and a strong dollar prompt foreign visitors to opt for other destinations, according to the World Travel and Tourism Council.

International travelers are shunning U.S. vacations due to unpopular policies from the administration of President Donald Trump, fear of being stopped at the border and an unfavorable exchange rate, said Julia Simpson, CEO of the WTTC, an organization representing the travel industry’s private sector.

“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% 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 emphasize 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 told Reuters. “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% of U.S. travel and tourism spending comes from domestic tourists, Canadian travelers 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. travelers.

Travel from Canada and Mexico, the largest source of inbound visitors to the U.S., is down about 20% year-over-year, the organization said. Visits from British, German and South Korean travelers are also trending lower.

Overall, overseas travel to the U.S. fell about 12% year-over-year in March but rose 8% in April, according to data from the U.S. National Travel and Tourism Office.

(Reporting by Doyinsola Oladipo in New York; Editing by Nia Williams)