US faces $12.5bn slump in international visitor spending

International visitor spending in the US is forecast to fall by $12.5 billion this year.

 

This would leave annual growth of just 0.7%, according to the World Travel & Tourism Council (WTTC).  

 

The world’s most powerful travel and tourism market could lose its competitive edge without destination promotion, traveller-friendly policies and reduced visa costs, the organisation warned at its 25th annual summit in Rome.

 

Travel and tourism contributed $2.6 trillion to US to GDP in 2024, with its domestic market remaining the strongest in the world, sustaining millions of jobs and underpinning sector resilience.

 

But the return of Donald Trump as president has seen travel bans imposed on certain countries and trade tariffs adding uncertainty to transatlantic travel, the European Travel Commission highlighted ahead of the summer peak.

 

The WTTC’s economic impact research trends report shows that five of the world’s top 10 most powerful travel and tourism markets by GDP are in Europe.

 

Travel and tourism is now growing faster than the consumer goods sector, showing how people increasingly value experiences over material goods, according to the WTTC.

 

The UK added $367 billion to its economy, maintaining its position as one of the strongest and most dynamic markets worldwide, despite losing £2.2 billion in international visitor spending last year, the report showed.

 

France was ranked as the world’s most visited destination, generating $289 billion from travel and tourism in 2024, while Spain, the second most visited country in the world, added $270 billion.

 

The broad-based growth in Europe demonstrates the region’s ability to blend heritage with innovation, maintain global competitiveness, and lead the way in sustainable tourism development, the report noted.

 

The Middle East remains one of the fastest-growing regions in the world, with Saudi Arabia continuing to stand out as a global powerhouse, with inbound visitor spend surging and infrastructure investment reaching record levels.

 

China, rated as the world’s second-largest travel and tourism market, saw the sector contribute $1.64 trillion to its economy in 2024, and is forecast to surge by 22.7% this year, adding $260 billion.

 

Japan, with the fifth largest travel and tourism economy worth $310.5 billion in 2024, is forecast to add a further $13.8 billion to its GDP this year to reach almost $325 billion.

 

Global investment in the sector surpassed $1 trillion in 2024, up 9.9% year on year, and is forecast to continue climbing in 2025.

 

The US, China, Saudi Arabia and France together accounted for more than half a trillion dollars of that investment.

 

Travel and tourism supported 357 million jobs in 2024 and is set to rise to 371million this year, along with an increase in the sector’s share of global employment.

 

One in eight jobs worldwide will be supported by the sector by 2035, with an additional 91 million new roles - the majority in the Asia-Pacific region - resulting in one in three new jobs globally supported by travel and tourism, the WTTC predicted.

 

WTTC interim chief executive Gloria Guevara said: “These results tell a story of strength and opportunity. 

 

“The US remains the world’s largest travel and tourism market, China is surging back, Europe is powering ahead, and destinations across the Middle East, Asia, and Africa are delivering record growth. 

 

"This year, we are forecasting that our sector will contribute an historic $2.1 trillion, surpassing the previous high of $1.9 trillion in 2019, by $164 billion.”