Updated on May 21, 2025 by Arnie Adamsen
Table of Contents
Final Takeaways
• The U.S. is losing $12.5 billion in travel revenue in 2025, and international visitor spending is at its lowest in years.
• Travel from Canada and Mexico is down 20%, with millions fewer visitors crossing the border.
• Only 32% of tourism businesses are turning a profit, down from 43% just two years ago.\
• While Americans are still traveling, that won’t make up for the lost income from international tourists.
• Without changes, the U.S. may lose its place as a favorite travel destination for years to come.
For many years, the travel and tourism industry was one of America’s strongest economic engines. Tourists from around the world came to visit famous landmarks, attend U.S. schools, and spend money on hotels, restaurants, and entertainment. But in 2025, that success story is taking a sharp turn—and not in a good direction.
New data and global trends show that foreign travelers are staying away. The U.S. is expected to lose billions in tourism revenue, and the damage is already spreading across airlines, hotels, and college towns.
America’s Travel Income Takes a Major Hit
The U.S. travel industry is now running a $50 billion trade deficit—the first time in over 20 years. Just two years ago, it had a surplus of $3.5 billion. This means the country is earning far less from international visitors than it’s spending on Americans traveling abroad.
According to new projections, the U.S. will lose about $12.5 billion in travel revenue this year. Spending by international visitors is projected to drop to under $169 billion by the end of 2025. That’s a 7% drop from last year and a 22.5% decline from the 2019 peak.
Shockingly, out of 184 countries, the U.S. is the only one forecast to lose tourism revenue in 2025.
What’s Driving Tourists Away?
So why are fewer people coming to the U.S.?
A mix of political tension, tougher border controls, and a strong U.S. dollar is making many visitors rethink their travel plans. Reports of travelers being detained, questioned harshly, or facing stricter visa rules have also hurt the country’s image.
President Trump’s return to office and the renewed emphasis on “America First” policies have contributed to growing concerns among international travelers. His announcement of new tariffs in April 2025 and comments about Canada have caused backlash, especially from nearby countries.
The Sharpest Drop in Visitors is from Canada and Mexico
Travel from Canada and Mexico—America’s two largest sources of visitors—has dropped about 20% since last year.
In March 2025 alone:
- Canadian land arrivals fell 31.9%
- Canadian air arrivals dropped 13.5%
- Air travel from Mexico dropped 23%
Current forecasts project a 20.2% drop in Canadian tourism, which could result in a $9 billion decline in visitor spending this year.
Fewer Students, Fewer Spenders
The travel drop isn’t just about tourists. International student enrollment is down 11%, and that has a major financial impact. These students often spend on housing, food, tuition, and transportation. This decline could cost the U.S. up to $4 billion in lost spending in 2025.
Some Good News, Americans Still Want to Travel
Not all parts of the industry are hurting. Americans are still taking trips, especially to Europe and popular U.S. destinations.
Booking Holdings, the company behind Booking.com and Priceline, reported:
- 7% increase in bookings
- 8% growth in revenue in early 2025
Part of the travel confusion may also be due to the calendar. In 2024, Easter came in March. This year, it was in April, which shifted when people booked trips and may have made the early-year travel numbers look worse than they really are.
Looking Ahead
Tourism experts now believe that international travel to the U.S. may not fully recover until 2029. That’s four more years of slow growth and missed opportunities.
The sharp drop in foreign travel isn’t just about economics—it’s about how the U.S. is seen by the world. If people feel unwanted or unsafe, they’ll go elsewhere. The more that message spreads, the longer it will take to fix.
What Needs to Change?
To remain a top global travel destination, the U.S. will need to take clear and strategic action. Tourism businesses should shift more attention to domestic and outbound travelers by offering better deals and more flexible options to keep people engaged.
Cities and destinations must also work to rebuild trust with international audiences through messaging that makes visitors feel genuinely welcome. At the national level, government leaders should carefully consider how border policies, immigration rules, and public statements shape global perception, because the way America presents itself has a direct impact on who chooses to visit.