The United States is projected to lose approximately $30 billion in international tourism this year, largely due to its current political climate and a robust dollar, which are deterring foreign travelers. Although the U.S. Travel Association originally anticipated foreign travel spending would reach $200.8 billion, a stark decline in visitor arrivals has led the World Travel & Tourism Council to revise its estimate downward to $169 billion for the year.
This loss in revenue is likely to benefit other countries, particularly Canada and various Latin American nations, as tourists redirect their travel plans or opt to stay within their own regions. For instance, U.S. visits from Canadians plummeted nearly 18% year over year in the first half of 2025, translating to a decline of over 1.75 million visits, according to the U.S. International Trade Administration. As many Canadians shift their focus to domestic travel, real estate data firm CoStar reported a July hotel occupancy rate of 77.6% in Canada, its highest since 2019. The government’s “Canada Strong Pass” initiative, designed to promote domestic tourism, has also encouraged increased visits to museums, historic sites, and national parks.
Meanwhile, an emerging trend reveals that many Canadians are now choosing sunny destinations like Mexico, Latin America, and the Caribbean instead of heading to the U.S. Adam Sacks, president of research firm Tourism Economics, noted a significant shift in Canadian travel preferences. Data from Booking Holdings corroborates this trend, indicating a marked increase in Canadians traveling to Mexico.
Latin America is also becoming more popular among European travelers seeking alternatives to the U.S. According to consulting firm Accenture, both the region and the Caribbean are drawing in European tourists, further highlighting a shift in international travel patterns. Booking Holdings pointed out the rise of “new travel corridors,” where Europeans are increasingly exploring both intra-European destinations and regions like Asia.
Notably, travelers from Asia are also reconsidering their trips to the U.S., opting instead for destinations like Europe and the Middle East. A recent survey by Milieu Insight, which polled 6,000 Southeast Asian travelers, revealed that many reconsidering U.S. trips plan to travel within Southeast Asia or East Asia, followed by Europe and Oceania. Singaporean traveler Rahul Jain shared his plans to visit Australia, noting that the U.S. has fallen off his travel list.
In the first half of 2025, the U.S. saw about 1 million fewer international visitors than in the same time frame in 2024, with forecasts indicating a total of 13 million fewer arrivals by year-end compared to 2019. Concurrently, countries like Spain, Saudi Arabia, and Turkey are projected to gain significantly more international visitors, with increases of 16.5 million, 14.5 million, and 14 million respectively, according to Sacks.
Historically, the U.S. share of global international travel has dwindled, dropping from 8.4% in 1996 to an anticipated 4.2% in 2024, as new markets have developed. The decline in this share was exacerbated during various political administrations and has not shown signs of recovery. Sacks emphasized that the U.S. is continuing to lose its travel market share, underlining how significantly it has lagged behind competing destinations like France, Greece, Mexico, and Italy.
As international travel dynamics continue to shift, the U.S. faces increasing challenges to attract foreign visitors, and the ongoing trend suggests the situation could worsen in the coming years.
Original Source: https://www.cnbc.com/2025/09/07/where-are-travelers-going-if-they-arent-going-to-the-us.html
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Publish Date: 2025-09-08 04:30:00
