America is taking a big hit to its travel sector in 2025

New report reveals a growing problem

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

The United States is set to lose billions of dollars as a result of decreasing international travel to the country. A recent report from the US Travel Association revealed that travel to America is falling fast, but it also offered a sign of hope. 

Opportunity and warning

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

"The latest forecast signals both opportunity and warning for America’s travel economy,"  the US Travel Association explained in a statement. "While domestic travel is holding steady, the continued decline in international visitors threatens billions in spending and thousands of jobs." 

Slower spending growth

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

According to the latest travel forecast from the US Travel Association, there has been a slower growth of travel in the United States in 2025. The lower expected growth is being driven by decreasing international inbound travel numbers. 

International travel fell

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

However, while international travel to the United States has dropped significantly and is expected to stay low throughout the rest of the year, the country is being buoyed by the rise of domestic travel spending, despite economic worries among American consumers.  

Modest travel spending growth in 2025

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

The US Travel Association reported that travel spending in America is expected to rise by a meager 1.1% in 2025 to $1.35 billion. However, inbound visits are projected to fall by 6.3% year-over-year in 2024. This is a significant drop. 

The first fall since 2020

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

According to the report, the United States saw 72.4 million international visitors in 2024. That figure is set to fall to 67.9 million in 2025. This is the first decline in travel numbers to the country since 2020 and will result in a major problem. 

$173 billion will be lost

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

The United States will see just 85% of the international travel volume that it enjoyed in 2019 in 2025. Inbound travel spending is projected to fall by 3.2% in 2025 to $173 billion. This will result in tens of billions of dollars in lost travel spending. 

A major travel shortfall

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

The US Travel Association reported that when decreasing inbound travel is combined with growing outbound travel (Americans traveling abroad), the country is facing a $70 billion shortfall in its travel trade deficit. But there is a silver lining. 

Domestic travel is rising

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

Domestic travel has risen in 2025, which is important because American consumers are the largest component of the nation’s travel spending, the US Travel Association noted. It also forecasted that domestic leisure travel spending is forecasted to rise by 1.9% ($895 billion) in 2025. 

Americans are prioritizing travel

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

“Consumer sentiment shows concern about inflation and general economic conditions, but Americans continued to prioritize travel,” the US Travel Association explained. 

Increases for the economy

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

“Prices of travel-related items and services have been relatively stable, showing smaller increases than for the economy overall.” The US Travel Association continued. 

The inbound travel drop driver

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

The decrease in Canadian visitors to the United States was cited as the primary reason for the decline in inbound travel. The association also warned that visits from other countries are expected to remain flat for the remainder of 2025. 

A warning in February 2025

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

In February 2025, the US Travel Association warned that US President Donald Trump’s new tariffs would likely impact Canadian visitations to the United States. It also reported that the situation could be disastrous for the American travel industry and economy as a whole. 

Canada is key for US tourism

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

“Canada is the top source of international visitors to the United States, with 20.4 million visits in 2024, generating $20.5 billion in spending and supporting 140,000 American jobs,” the US Travel Association noted at the time. “A 10% reduction in Canadian travel could mean 2.0 million fewer visits, $2.1 billion in lost spending and 14,000 job losses.”

The problem could get worse

New report reveals a growing problem, Opportunity and warning, Slower spending growth, International travel fell, Modest travel spending growth in 2025, The first fall since 2020, 3 billion will be lost, A major travel shortfall, Domestic travel is rising, Americans are prioritizing travel, Increases for the economy, The inbound travel drop driver, A warning in February 2025, Canada is key for US tourism, The problem could get worse

The US Travel Association’s latest report warned that the situation facing the country could get worse. Potential future increases in visa fees, extended wait times for visa applications, and negative sentiment towards the United States in key markets will all play a role in hammering the travel sector. 

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