The U.S. Is Losing International Tourists — Here’s Who’s Winning in 2025

International travelers are voting with their passports this year, and the United States is not their top pick. A stronger dollar, polarizing politics, and plenty of attractive alternatives are pushing visitors to look elsewhere. Industry forecasts now suggest the U.S. will forfeit tens of billions in tourism revenue in 2025, while nearby countries and long-haul favorites capture the demand. Here is what is changing, where those travelers are going, and why it matters.

A Costly Slide for U.S. Tourism

Early in the year, expectations were high. One major industry group projected that foreign visitor spending in the United States would climb to roughly $200 billion in 2025. By midyear, the outlook dimmed. Another global tourism body warned that international spending could instead fall to around $170 billion, implying a shortfall of about $30 billion. The gap reflects fewer arrivals, shorter stays, and tighter budgets once travelers land. A strong dollar raises on-the-ground costs, and many visitors are choosing destinations where their money stretches further.

Canada: Staying Home or Skipping Over the U.S.

Nowhere is the shift more visible than in Canada. During the first half of 2025, Canadian trips to the U.S. dropped sharply year over year. Many Canadians decided to keep their spending at home, driving hotel occupancy to its highest summer level since 2019. A nationwide campaign that bundled museum entries, heritage sites, and national park visits helped fill rooms and trails. Others still headed south for sunshine but chose to “fly over” the United States altogether, booking Mexico and Caribbean resorts instead of classic American city breaks.

Latin America and the Caribbean Pick Up Momentum

For both Canadians and Europeans, Latin America has become an easy yes. Affordable flights, favorable exchange rates, and a wide range of beach and culture itineraries keep demand strong for Mexico, Costa Rica, the Dominican Republic, and beyond. Major booking platforms also report rising interest across the Caribbean. Many travelers who might have booked Florida or California in past years are opting for warm-weather destinations where their currency goes further and resort packages simplify planning.

Europe’s Travelers Are Re-Routing Too

Europeans are traveling in large numbers, but not necessarily to the U.S. This year, Western Europeans are favoring short-haul trips within the region, plus quick escapes to the Middle East, where new hotels and visitor infrastructure have expanded rapidly. Southeast Asian travelers are also recalibrating. Surveys show those reconsidering trips to the United States are more likely to explore within Asia first, with Europe and Oceania as next choices. In practice, that means more arrivals for places like Japan, South Korea, Italy, Spain, and Australia.

“New Travel Corridors” Are Emerging

Booking and analytics firms describe 2025 as the year of new corridors. With the U.S. slipping on price and perception, travelers are swapping classic long-haul patterns for alternatives. Canadians are shifting from New York and Las Vegas to Cancun and Cabo. Western Europeans are parcelling out multiple short European trips and adding Dubai or Doha city breaks. Southeast Asian travelers who once prioritized Los Angeles or San Francisco are looking at Paris, London, and regional favorites like Tokyo or Taipei. The trend is not a collapse in travel, but a re-mix that sends flows in new directions.

Fewer Visitors, Bigger Gap

Hard numbers tell the story. In the first six months of the year, international arrivals to the United States were down compared with the same period in 2024. Against the last pre-pandemic benchmark in 2019, the full-year total is on track to miss by millions of visitors. Meanwhile, other countries are pacing ahead of their 2019 baselines. Spain, Saudi Arabia, and Turkey are projected to post some of the largest gains versus pre-pandemic levels, underscoring how global supply, marketing, and new air routes can quickly redirect demand.

Market Share Keeps Shrinking

The United States once commanded a much larger slice of global tourism. Over the past three decades, that share has steadily narrowed as new destinations invested in airports, hotels, and experiences. After leveling off for a time, the U.S. share slipped again during the late 2010s, and it is set to fall further in 2025. Forecasts suggest the country’s portion of worldwide international arrivals could hover near the low single digits for years, even as travel overall continues to grow.

Why Travelers Are Choosing Elsewhere

Three factors keep coming up in traveler surveys and industry interviews:

• Price and exchange rates: A strong U.S. dollar makes hotel nights, dining, and attractions more expensive relative to peer destinations.
• Ease and perception: Visa rules, airport hassles, and political headlines shape trip choices. Many travelers prefer friction-light options with simple entry and predictable service.
• Fresh product: Middle Eastern hubs and Latin American beach destinations have poured money into new hotels, dining, and entertainment. Europe continues to refresh experiences while adding infrastructure to handle crowds.

Who Benefits in 2025

• Canada: Domestic campaigns and park programming are paying off with fuller hotels and busy museums.
• Mexico and the Caribbean: All-inclusive resorts and flight capacity draw both Canadians and Europeans who might otherwise have booked the U.S.
• Southern Europe: Spain and Italy remain magnetic thanks to rail connectivity, culture, and shoulder-season bargains.
• The Middle East: New attractions, major events, and world-class airports are turning stopovers into full vacations.
• Select Asia-Pacific markets: Japan, South Korea, and Australia are benefiting from renewed interest among Southeast Asian and European travelers.

What It Means for U.S. Destinations

For American cities that depend on inbound travelers, fewer international visitors mean softer hotel demand, thinner restaurant margins, and less tax revenue from tourism. The path back is straightforward but not easy: restore competitive pricing where possible, simplify entry and airport experiences, and keep investing in new product that gives travelers a clear reason to visit now. Until then, other destinations will continue to capitalize on the re-routed demand.

Bottom Line

Travel is not slowing down in 2025, but patterns are shifting. As the United States loses ground on price and perception, Canada, Latin America, Southern Europe, the Middle East, and parts of Asia-Pacific are welcoming the visitors who would have once crossed the Atlantic for an American trip. For travelers, the upside is more choice and better deals outside the U.S. For American destinations, the message is clear: make visits easier, better value, and more compelling, or watch more of the world’s tourism dollars go elsewhere.

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This article was written by Hunter and edited with AI Assistance