The Vanishing Tourist: America’s Inbound Travel Slump
$1 Lost, $2.20 Gone: The Multiplier Effect of Declining Tourism in the U.S
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Travel & Tourism contributed $2.6TN1 to the economy last year and supported more than 20mn jobs. It also contributed more than $585BN in tax revenue annually, accounting for almost 7% of all government income. It could be even higher with a strong international visitor base. The travel and tourism sector has been a reliable driver of federal, state, and local tax receipts.
But here is the disturbing trend we have been noticing since January 2025 vs FY 2024. International inbound tourism to the U.S. has slowed in 2025, creating measurable economic costs. Declines in foreign visitor spending directly reduce U.S. export earnings and gross domestic product (GDP) growth, while also rippling through related industries via supply-chain and consumer-spending effects.
International visitor spending in the country is projected to fall below $169 billion this year, down from $181 billion in 2024 and 22% below its previous peak in 2019.2
At the same time, outbound travel is surging. Americans are travelling abroad in large numbers, yet inbound recovery from key markets has stalled. The U.S. is welcoming fewer visitors from its neighbors.
Below is an analysis of the downturn’s impact, including direct losses, broader indirect/induced effects on GDP and jobs, sector-specific impacts, and comparisons to 2019 (pre-pandemic) and 2024 levels.