The United States could see a hemorrhaging hospitality industry lose up to $12.5 billion in international travel tourism dollars this year, collapsing to $169 billion from $181 billion in 2024, according to the World Travel and Tourism Council.
That would be a 22.5 percent decline from the U.S. international spending peak of $217.4 billion in 2019, per the trade group’s latest Economic Impact Research. The projection comes after months of Trump administration policies that have spooked travelers.
Trade publication Travel and Tour World notes that the loss of international income will be most acute along the borders.
“Major US cities and tourism hotspots, particularly those along the Canadian border, are expected to experience a disproportionate share of the $12.5 billion loss in revenue. These areas heavily rely on international tourists, and the drop in arrivals will have a severe impact on their local economies,” the publication noted.
Geoff Freeman, president and CEO of US Travel, said in a statement to Quartz, “We are paying close attention to visitation data.”
Freeman said the Trump administration’s border and immigration policies have shifted some perceptions abroad.
“That is a perception that does not reflect the administration’s intent,” Freeman said. “We stand ready to partner with the Administration to reduce traveler friction and reaffirm that the United States remains a warm, open, and welcoming destination for all lawful international visitors,” he added.
Meanwhile, Alex Alioto, who leads growth at the vacation rental agency Whimstay, said the impact of this travel loss will be uneven among players in the U.S. hospitality industry.
“The impact will vary by destination; international hubs like Orlando may face challenges, but on the flip side destinations like Orange Beach and Gatlinburg can thrive,” Alioto said, as some U.S.-based travelers are also choosing to stay home and check out more offbeat places stateside.