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4d ago

U.S. Faces $12.5 Billion Tourism Revenue Decline as Domestic Travel Surges

Economic pressures, strong dollar, and operational disruptions reshape the 2025 summer travel landscape, with record domestic travel projected for Memorial Day weekend.

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Travelers walk through Newark Liberty International Airport on one of the busiest travel days of the season on May 23, 2025, in Newark, New Jersey. According to AAA, a record 45.1 million people are expected to travel on highways, trains, and by plane between Thursday, May 22, and Monday, May 26. This is anticipated to break the 2005 Memorial Day holiday weekend record of 44 million travelers.
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Overview

  • The U.S. is the only country out of 184 analyzed to see a projected decline in international tourism revenue in 2025, with spending expected to fall below $169 billion, a $12.5 billion drop from 2024.
  • A strong dollar, tariffs, and political rhetoric have deterred international visitors, with industry leaders citing a perception of the U.S. as unwelcoming.
  • Domestic airfares are down 7% year-over-year as airlines cut capacity and adjust operations to match weakening demand, creating opportunities for budget-conscious travelers.
  • AAA forecasts 45.1 million Americans will travel over Memorial Day weekend, reflecting a shift toward domestic trips, road travel, and off-peak itineraries.
  • Operational challenges, including air traffic control failures at major hubs like Newark and Atlanta, have led to widespread delays and cancellations, further influencing travel behavior.