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Transport

US poised for $12.5B hit to tourism sector in 2025

The US is on track to lose US$12.5 billion in travel revenue in 2025, according to new data from the World Travel & Tourism Council (WTTC).

The data, shared exclusively with Bloomberg, showed that visitor spending is expected to below $169 billion for the year, a 7% decline from 2024 and a 22% drop since the 2019 peak.

Among 184 global economies analyzed by the WTTC and Oxford Economics, the US is uniquely expected to experience a decline in tourism revenue this year, while other countries are seeing growth.

“Other countries are really rolling out the welcome mat, and it feels like the US is putting up a ‘we are closed’ sign at their doorway,” WTTC CEO Julia Simpson told Bloomberg.

The downturn was attributed largely to deteriorating international relations and policies under President Donald Trump, including tariffs and antagonistic comments about allies like Canada and Europe, which have discouraged international visitors.

For example, Canadian bookings have sharply decreased, with northern New York businesses near the Canadian border reporting significant drops in tourism and consequent staffing reductions. International arrivals from Europe and Asia are also down.

As such, the impact is uneven across the US, with major entry points such as New York City facing a forecasted drop of 400,000 tourists and a $4 billion reduction in tourism spending compared to 2024.

“What we are seeing now is a sentiment shift that’s really very sad,” Simpson said. “Legislators need not confuse the tourism sector with issues around illegal immigration. A sophisticated system can balance both without turning [the country] into an island that no one wants to visit.”

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