American is struggling with significant losses in international tourism. The country already suffered from a $12.5 billion travel deficit in the first few months of 2025.
Forecasts indicate that tourist spending will decline below $169 billion by the end of the year, which means a 7% drop from 2024, and a 22% collapse from 2019-record levels before the pandemic. According to data from the World Travel & Tourism Council shared with Bloomberg, the United States is the only country among 184 global economies expected to lose money from tourism this year. The council’s president, Julia Simpson, criticized the country’s unwelcoming image, warning that while other nations encourage travelers, the US is pushing them away.
Tourism sector hit by policy and economic factors
Tourism in the United States generates $2.6 trillion and supports 20 million jobs and pays 585 billion dollars in taxes. However, the long-standing travel restrictions, strength of US dollar, and political rhetoric threaten the recovery efforts. The WTTC observed that the increasing costs of travelling and negative sentiment is discouraging critical international markets, especially now that the former President Donald Trump is back, continuity to promote stricter immigration stands.
Simpson warned against associating tourism with immigration problems. She said that with the rational approach US can establish border policies without scaring tourists off. March International arrival data backs this concern with precipitous declines from several key markets including Germany, UK, South Korea, and Spain.
Cities and states suffer economic blow
New York City has been hit particularly hard, with the city’s tourism board recently cutting its 2025 forecast. Officials now expect 64 million visitors, down by 400,000 from initial estimates, translating to $4 billion in lost revenue. While more domestic travelers are expected, losing 800,000 international visitors will severely hurt the city’s economy, as foreign tourists tend to stay longer and spend more.
In upstate New York, tourism businesses near the Canadian border are also suffering. Governor Kathy Hochul reported that two-thirds of companies are experiencing fewer bookings from Canada, with some already adjusting staffing levels due to Trump’s trade stance and aggressive messaging.
Future recovery faces additional challenges
Industry experts warn the recovery could take until 2030. Proposed ESTA visa waiver program changes, including a fee increase from $21 to $40, are also raising concerns. Simpson argued that higher entry costs will only further discourage visitors.