In 2025, U.S. tourism is projected to face a significant decline, with international visitor spending dropping by $12.5 billion, leading to a modest growth rate of just 0.7%. This downturn comes as global tourism markets such as China, Japan, Saudi Arabia, France, and the UK experience remarkable growth. Factors like stricter visa policies, changing travel regulations, and increasing global competition are contributing to the U.S. setback. Meanwhile, countries like China and Japan are benefiting from a surge in travel demand, driven by economic recovery and expanding middle-class populations. Saudi Arabia’s substantial investments in tourism infrastructure, combined with France and the UK’s blend of cultural heritage and modern appeal, continue to attract millions of visitors. These nations are not only maintaining their popularity but are setting new trends in global tourism, highlighting the importance of strategic investments and progressive policies for maintaining a competitive edge.
The U.S. faces the risk of losing its competitive advantage unless it invests in destination promotion, traveler-friendly policies, and lower visa costs. These findings were presented at the WTTC’s 25th annual summit in Rome, where experts emphasized the importance of staying competitive in a rapidly evolving global travel landscape.
Despite this expected dip in international spending, the travel and tourism industry remains a crucial contributor to the U.S. economy. In 2024, the sector is estimated to add a substantial $2.6 trillion to the nation’s GDP, reinforcing its status as the largest domestic market for travel and tourism worldwide. The industry also plays a vital role in job creation and economic resilience, supporting millions of jobs and maintaining the sector’s stability even amid global uncertainties.
However, travel to and from the U.S. is facing increasing challenges. Policies such as travel bans on certain countries, along with trade tariffs, have raised concerns about the future of transatlantic travel. These developments have added a layer of uncertainty to travel patterns, especially as peak travel seasons approach. With such restrictions in place, the U.S. travel sector could struggle to maintain the same level of growth and international appeal in the coming years.
The WTTC’s economic impact trends report paints a broader picture of global travel. It reveals that five of the world’s top ten travel and tourism markets by GDP are located in Europe. This shift highlights how European countries are strengthening their positions within the sector, and in many cases, outpacing traditional travel giants in growth.
Europe’s travel industry remains a powerhouse. In the UK, travel and tourism contributed $367 billion to the economy in 2024, despite a $2.2 billion decline in international visitor spending. France continues to hold its title as the most visited country globally, generating $289 billion from the sector, while Spain, ranked second in terms of international arrivals, added $270 billion to its economy. The sustained growth in these markets reflects Europe’s ability to combine rich cultural heritage with innovative travel solutions, making it one of the most competitive regions for global tourism. Furthermore, European countries are at the forefront of sustainable tourism development, ensuring long-term success while preserving cultural and natural assets.
The Middle East is another region experiencing significant growth. Saudi Arabia, in particular, stands out as a global leader in the sector, with rising inbound visitor spending and major investments in tourism infrastructure. The country’s strategic focus on tourism as a key economic driver has led to impressive expansion, positioning it as a key player in the global travel and tourism market.
Meanwhile, China remains the second-largest market globally for travel and tourism. The sector contributed $1.64 trillion to the Chinese economy in 2024 and is expected to grow by 22.7% in 2025, adding another $260 billion. This growth is reflective of China’s growing middle class and their increasing desire for international travel experiences. Similarly, Japan’s travel industry, valued at $310.5 billion in 2024, is set to expand further by $13.8 billion this year, reflecting strong performance in the Asia-Pacific region.
Globally, investment in the travel and tourism sector surpassed $1 trillion in 2024, marking a 9.9% increase from the previous year. This surge in investment, projected to continue into 2025, highlights the sector’s resilience and growth potential. The U.S., China, Saudi Arabia, and France together accounted for more than half of this global investment, underscoring their dominant roles in the market.
In terms of employment, travel and tourism supported 357 million jobs globally in 2024, with the figure expected to rise to 371 million in 2025. By 2035, the sector is forecast to support one in eight jobs worldwide, contributing to the creation of 91 million new roles. The majority of these new positions will be in the Asia-Pacific region, where the industry continues to grow at a rapid pace. This growth is set to make travel and tourism one of the largest sectors in terms of job creation, with one in three new jobs globally supported by the industry.
The WTTC also forecasts that the global travel and tourism sector will contribute a historic $2.1 trillion to the global economy in 2025. This would surpass the previous record set in 2019, when the sector contributed $1.9 trillion, by an impressive $164 billion. This continued growth, despite challenges in certain regions, highlights the importance of the sector as a driver of global economic activity and job creation.
As the global travel landscape continues to evolve, it is clear that strategic investments in infrastructure, sustainability, and policy reform will be key for nations to maintain their positions as leaders in the sector. The future of travel and tourism lies in balancing innovation with heritage, sustainability with growth, and accessibility with competitiveness.
