The Essentials

Declining U.S. Tourism and Global Growth

The numbers are in, and they’re not hopeful or reassuring. 

Travel to the U.S. from foreign visitors continues to drop, and the number one reason cited: the perception that the U.S. is either unwelcoming or inhospitable to foreigners, or both. 

That drop has already resulted in lost revenue to U.S. travel and tourism of more than $25 billion, and that’s money that can’t be recouped. And now, according to the U.S. Travel Association, visitor spending has dropped at least seven percent. 

At the same time, global tourism is experiencing double-digit growth. 

Compounding the problem, is the U.S. government shutdown. And all of these factors are now expected to delay a full economic recovery to pre-pandemic levels until at least 2029. What does this mean for travelers? 

In the very short term: lower fares and hotel rates as the travel industry tries to adjust. But a caution in the long term: expect more expensive trips as airlines limit capacity,  and many hotel owners make the decision that it’s better for them to operate at 50 percent capacity and not discount their rates, than discount and fill the hotel.