America’s Service Sector Is Cracking - Tourism Is the Fault Line
Tourism’s Collapse Is Killing U.S. Jobs
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International visitors aren’t coming — and the consequences are piling up fast. The U.S. is set to lose $12.5 billion in tourism revenue this year alone, but that’s just the start. Behind the numbers lies a deeper unraveling: rising layoffs, service breakdowns at airports and hotels, and cities like Orlando, San Francisco, and Washington D.C. bracing for impact. As policy barriers grow and travel sentiment sours, a once-booming recovery is faltering — and millions of jobs may be at risk.
Less than a month after we published “The Vanishing Tourist”, the slowdown we flagged is already accelerating. International arrivals are shrinking, tourism jobs are tightening, and key cities are bracing for economic whiplash.
The May 2025 jobs report showed a headline gain of +139,000 jobs and an unchanged 4.2% unemployment rate, but the fine print tells a far more cautionary tale for the U.S. travel economy—a sector already battered by declining international tourism, rising tariffs, and tightening immigration.
The U.S. tourism sector is facing a sharp decline in 2025, with job losses expected to reach more than 230,000 as international visitors stay away. The downturn, driven by trade policies, travel restrictions, and concerns over social issues, is set to cost the country $12.5 billion in tourism revenue this year.
Hotel operators, airlines, and tourism boards are now bracing for impact. Will this signal a travel downturn? Could summer’s momentum stall? As Washington, DC and the rest of these top destinations watch closely, the question is no longer if the travel market will shift, but how fast.
Read the full breakdown of how tourism’s retreat reshapes jobs, cities, and the American economy.