Inbound tourism, long considered a dependable pillar of the US economy, is now showing troubling signs of decline. According to Unicus research, 2025 has brought a significant downturn in international travel to the United States, with ripple effects spreading through multiple sectors.
This comes as a stark contrast to the travel and tourism sector’s robust contribution of $2.6 trillion to the economy in 2024, which supported over 20 million jobs and generated more than $585 billion in tax revenue — nearly 7% of all government income.
Inbound tourism in reverse
Since January 2025, the number of foreign tourists entering the US has dropped sharply compared to the previous fiscal year. This decline has translated into measurable economic costs. International visitor spending — classified as an export in economic terms — is now expected to fall below $169 billion for the year. That’s a notable drop from $181 billion in 2024 and a steep 22% below its pre-pandemic peak in 2019, as per the research.
🚨 For $1 Lost, $2.20 Gone: The Multiplier Effect of Declining Tourism in the U.S.
– Lost in inbound tourism will cause further unemployment throughout the travel supply chain.
– The impact of declining tourism is invisible and indirect, yet profound.
– a thread🧵 pic.twitter.com/eKQE2B26Gu
— Unicus (@UnicusResearch) May 26, 2025
This downturn is not happening in isolation. Outbound travel from the US is soaring, as Americans venture abroad in increasing numbers. Yet inbound tourism recovery from key foreign markets — once reliable contributors to the domestic travel economy — has stagnated or even reversed. The US is receiving fewer visitors from traditional allies and neighbors, including a drastic reduction in some of its most vital markets.
Key markets post significant declines
Recent data released by the US Department of Commerce underscores the severity of this trend. In March 2025 alone, some of the US’s most crucial tourism markets saw double-digit declines in inbound travelers:
- Arrivals from the United Kingdom dropped nearly 15% year over year.
- Germany posted an even more dramatic 28% decline.
- South Korea saw a fall of 15%, reflecting a broader slowdown in East Asian markets.
These figures are more than just statistics — they signal a weakening of America’s position as a global tourism destination and highlight challenges in post-pandemic recovery efforts.
Economic and sector-wide implications
The consequences of declining foreign tourism stretch beyond lost airline bookings or empty hotel rooms. International visitors typically spend on everything from dining and shopping to transportation and entertainment. When their numbers drop, the entire economic chain feels the pinch. The impact radiates across multiple industries — including hospitality, retail, logistics, and local services — and reduces GDP growth potential, as per the Unicus report.
Additionally, tax revenues suffer. With fewer international tourists spending on U.S. soil, federal, state, and local governments miss out on billions in sales, occupancy, and business taxes.
Looking back and ahead
While 2024 painted a promising picture of recovery from pandemic-era travel bans and uncertainty, 2025 is raising red flags. If the current trajectory holds, the US could see its tourism-based export earnings stagnate at best, and shrink at worst — undermining job creation and economic momentum.