This year, the United States is experiencing a sharp and sudden drop in international tourism not due to a global crisis, but largely because of its own immigration and visa policies. Industry leaders are warning that the damage may be long-lasting and deeply concerning.
Experts describe this downturn as a “self-inflicted injury” a situation driven by tougher border enforcement, steep visa fee hikes, aggressive rhetoric, and frequent detentions of travelers. Combined, these measures have diminished the U.S.’s appeal as a welcoming travel destination, leaving many Americans frustrated over what they see as unnecessary backlash.
The fallout is already evident in the data. The World Travel & Tourism Council (WTTC) estimates that international visitor spending is set to fall to under $169 billion in 2025, down from $181 billion in 2024. This translates to a projected loss of $12.5 billion—a nearly 7% decline year-on-year .
Meanwhile, the U.S. Travel Association and media voices such as CNBC have sounded alarms. Analyst firm Tourism Economics predicts a 5.1% drop in international arrivals, shaving off around $18 billion in tourist spending . The downturn is particularly sharp among visitors from Western Europe, Asia, and Canada. Canadian travel, for instance, has slumped 32% in border crossings, prompting airlines like Air Canada and WestJet to suspend U.S. routes .
The catalyst for much of this decline? Policy decisions that send the message that the U.S. is unwelcoming. One such example is the new $250 visa integrity fee, layered on top of existing charges that can make entry cost-prohibitive for many travelers . Add to this an environment of increased detentions and deportations including of travelers with valid visas and foreign visitors have grown wary. Multiple high-profile incidents and social media coverage have stoked global concern .
The consequences extend beyond tourism dollars. Local small-business owners—those running tours, motels, souvenir shops, and local eateries—are being hit directly. When international travelers stay away, so do the proceeds they bring; a decline that ripples across job markets and community revenue streams .
Amid mounting criticism, a cross-border coalition of tourism stakeholders is calling for urgent action. The Beyond Borders Tourism Coalition warns of 11% drops in international spending, lost bookings, and shrinking investment. They blame travel uncertainty, new fees, and unstable policies for this sharp downturn and call for coordinated leadership to reverse the trend .
Americans, especially those in tourism-dependent communities, view the current situation with growing frustration. As one tour operator in Santa Monica lamented, “Spring break never happened … Memorial Day didn’t happen either.” Another small business owner noted the irony: “It’s hard to be angry, because it’s not just me,” recognizing that travel revenues are essential to dozens of livelihoods .
The timing couldn’t be worse. As the U.S. prepares to host major events such as the 2026 FIFA World Cup and the 2028 Los Angeles Olympics, policymakers face mounting pressure to present a more welcoming face to the world one that encourages tourists to return, rather than stay away.