Canada, Germany, Mexico, South Korea, and UK Lead Global US Travel Pullback as Tourism Spending Set to Drop Over Seven Percent

Canada, Germany, South Korea, the UK, and Mexico are among the key international markets where travel to the United States is expected to decline in 2025, primarily due to new visa policies and ongoing currency pressures. Stricter entry requirements, including mandatory biometric registration and increased border scrutiny, have created uncertainty and inconvenience for travelers from these countries, while the strong US dollar has raised the cost of vacations in the US. Together, these factors are prompting many visitors to reconsider or postpone their travel plans, resulting in a significant drop in international tourism spending and challenging the US travel industry’s recovery efforts.

US International Travel Spending Forecast to Decline by Seven Percent in 2025 Amid Political and Currency Headwinds

The United States, long regarded as the world’s premier travel and tourism market, is facing a significant setback in international visitor spending. Industry experts project a decline of around seven percent in 2025, equating to an estimated loss of twelve and a half billion dollars compared to the previous year. This downturn is primarily attributed to political uncertainties and the persistently strong US dollar, which together are encouraging foreign tourists to consider other global destinations, according to recent analysis by the World Travel and Tourism Council (WTTC).

Julia Simpson, CEO of the WTTC, which serves as a leading voice for the private travel and tourism sector worldwide, underscored that the combination of recent US policies, heightened border security concerns, and unfavorable exchange rates has dampened the country’s appeal as a top vacation spot for international travelers.

Despite its dominant position as the largest travel economy globally, the United States is expected to see international visitor spending drop to under one hundred sixty-nine billion dollars this year, down from approximately one hundred eighty-one billion dollars in 2024. This figure remains substantially below the pre-pandemic peak of spending recorded in 2019, which was nearly twenty-two percent higher than current forecasts.

The Impact of Currency and Policy

A key factor in the decline has been the sustained strength of the US dollar. When the dollar is strong relative to other currencies, the cost of traveling to the United States rises for foreign visitors, making it a less attractive option compared to other destinations where their money stretches further. This currency imbalance has been felt for several years but became particularly pronounced throughout 2024, contributing to a noticeable fall in foreign travel expenditure.

However, currency alone does not explain the full story. Political developments in recent years have also played a critical role in shaping international perceptions of travel to the US. Policies introduced under the previous administration, often viewed as stringent or restrictive, have fueled apprehension among potential visitors.

One notable example is the tightened border control measures and the introduction of biometric data collection requirements. Since late 2024, all foreign nationals aged fourteen and above who plan to stay in the US for more than thirty days must register and submit fingerprints. This regulation has impacted visitors from multiple countries, including Canada—traditionally one of the US’s most significant inbound tourism markets—where citizens previously enjoyed visa-free visits of up to six months.

Border Concerns and Changing Advisories

Travel advisories issued by foreign governments further highlight the growing unease. Germany recently updated its official guidance regarding travel to the United States, explicitly cautioning that holding a visa or an approved entry waiver no longer guarantees admission at the border. This change came after a series of incidents involving German nationals being detained upon arrival, sending a strong message to potential visitors about the unpredictability of crossing US immigration checkpoints.

These developments have combined to create a perception of increased complexity and uncertainty for international travelers, leading many to reconsider their travel plans.

The Economic Significance of International Visitors

While domestic tourism forms the backbone of the US travel economy, accounting for roughly ninety percent of all travel-related spending, international visitors tend to spend significantly more per trip. According to the US Travel Association, Canadian travelers, for instance, spend on average three times more during their visits than US residents do domestically. The disparity is even more striking with overseas visitors, who tend to spend seven to eight times more than American travelers within the country.

Given that Canada and Mexico represent the largest sources of inbound visitors to the US, a decline in arrivals from these countries poses a serious challenge to the tourism sector. Data shows that travel from Canada and Mexico has dropped by nearly twenty percent compared to the previous year. Similarly, visitor numbers from key markets such as the United Kingdom, Germany, and South Korea are also on a downward trajectory.

Trends in Recent Visitor Data

Despite the overall decline in international arrivals and spending, some fluctuations have been observed. For example, the US National Travel and Tourism Office reported a roughly twelve percent year-over-year drop in overseas travel to the United States during March 2025. However, this trend saw a partial reversal in April, with arrivals rising by eight percent compared to the same period the previous year. While encouraging, these numbers remain below levels seen before the series of policy changes and currency shifts that began impacting travel patterns over the past few years.

Looking Ahead: Challenges and Opportunities

The forecasted decline in international travel spending underscores the delicate balance between national policies and global tourism competitiveness. While ensuring border security and maintaining sovereignty remain essential priorities, the US travel industry faces the challenge of mitigating the negative impacts of such measures on visitor perceptions and spending.

Efforts to rebuild confidence among international travelers may include clearer communication about border entry procedures, potential easing or streamlining of visa and biometric requirements, and promotional campaigns that highlight the diversity and safety of US destinations.

Moreover, currency fluctuations are largely influenced by global economic trends beyond the control of the tourism sector, meaning that the US must rely on strategic marketing and exceptional visitor experiences to remain competitive.

Canada, Germany, South Korea, the UK, and Mexico are seeing reduced travel to the US in 2025 due to new visa policies and strong currency pressures. These factors are driving a notable decline in international visitor spending.

The tourism industry remains a vital contributor to the American economy, supporting millions of jobs and generating substantial revenue. Reversing the decline in international travel spending will require a coordinated effort among government agencies, private sector stakeholders, and international partners to restore the United States’ standing as a welcoming and attractive destination for global visitors.