While the U.S. remains a premier global destination, recent data from late 2025 and early 2026 suggests the international tourism sector is facing significant headwinds.
The World Travel & Tourism Council (WTTC) had stated earlier in 2025 that international visitor spending to the U.S. is projected to fall to just under $169BN this year, down from $181BN in 2024.
This significant shortfall represents a 22.5% decline compared to the previous peak. The loss won’t be felt by Travel & Tourism alone, with WTTC saying it represents a direct blow to the U.S. economy overall, impacting communities, jobs, and businesses from coast to coast.
According to the study, the U.S, the largest Travel & Tourism sector in the world, is the only country among 184 economies analysed by WTTC and Oxford Economics, forecast to see international visitor spending decline in 2025.
Travel to the U.S. is currently struggling and here are the reasons why:
Prohibitive Visa Costs and "Integrity Fees"
As of January 1, 2026, the cost of entering the U.S. has skyrocketed. The introduction of the $250 "Visa Integrity Fee", included in the legislation titled One Big Beautiful Bill Act, has nearly doubled or even tripled the cost of a standard B1/B2 visitor visa for many countries. For a family of four from a country like India, the combined fees can now exceed INR 1 lakh (approx. USD 1,200), making the U.S. one of the most expensive destinations in the world before even booking a flight.
Expanded Travel Bans and Restrictions
Under Presidential Proclamation 10998, the U.S. has implemented sweeping entry bans or severe restrictions on nationals from 39 countries. This includes full suspensions for 19 nations (such as Iran, Syria, and several West African states) and partial restrictions for another 20. This move has not only cut off these specific markets but has created a "chilling effect" globally, leading to a perception that the U.S. is increasingly inaccessible.
Invasive Digital Vetting and Social Media Screening that intrude on privacy
New requirements for 2026 mandate that visitors—including those from formerly "visa-exempt" European countries—disclose five years of social media history and ten years of email addresses. This level of digital surveillance has sparked privacy concerns and deterred spontaneous travel, with many international tourists opting for more "welcoming" destinations like Japan or Western Europe.
The Canadian disconnect and Geopolitical Friction
Historically, Canada is the largest source of U.S. tourism. However, following recent political rhetoric regarding the annexation of Canadian territories and the imposition of 25% tariffs, Canadian arrivals have plummeted by over 20%. This has devastated border-state economies and major hubs like Florida, as Canadians increasingly boycott U.S. travel in favor of domestic or overseas alternatives.
High Domestic Costs and Economic Uncertainty
Inflation and new surcharges have made the "on-the-ground" experience more expensive than ever. Record-high fees for National Parks, rising hotel rates in gateway cities like New York and Los Angeles, and the overall strength of the U.S. dollar have led many travelers to conclude that a U.S. vacation is "no longer worth it" compared to more affordable, high-value markets in Southeast Asia or Europe.
Despite these issues, the U.S. is pinning its hopes on a recovery driven by the 2026 FIFA World Cup and the 250th Anniversary celebrations this summer.
To combat the current downturn in international arrivals, the U.S. has pivoted to a high-stakes "mega-event" strategy designed to make the country's high costs and strict entry requirements feel like a secondary concern. Central to this effort is the 2026 FIFA World Cup, for which the State Department launched the FIFA PASS system to fast-track visa interviews for ticket holders, ensuring that bureaucratic backlogs don't result in empty stadiums.
This logistical push is paired with the "America the Beautiful" global marketing campaign, which attempts to soften the nation's image by focusing on human stories and welcoming vibes rather than just landmarks.
Simultaneously, officials are leveraging the U.S. 250th Anniversary celebrations as a once-in-a-generation hook, using AI-driven digital tools to encourage visitors to extend their stays and explore more of the country. By bundling sports, history, and improved digital trip-planning, the U.S. hopes to provide enough "must-see" value to offset the financial and privacy hurdles that currently deter global travelers.
