Overseas Arrivals Decline: US International Travel Faces Challenges
The U.S. travel industry is grappling with some concerning trends. Overseas arrivals decreased by 2.8% in May 2025, pushing year-to-date international arrivals down by 0.8% compared to the first five months of 2024. The decline is particularly pronounced from key markets, with arrivals from Germany down by 10.1% and those from France falling by 8.4% year-over-year through May.
Industry experts now anticipate a decline of 8.2% in U.S. international overnight arrivals this year. Furthermore, international spending is projected to fall by $8.3 billion (-4.6%) compared to 2024. The weakness extends beyond international travel, with hotel demand in resort locations down by 1.4% year-to-date and National Park visits falling by 4.2% through May.
These challenges are attributed to a confluence of factors, including a strong dollar, rising consumer concerns about tariffs, and ongoing geopolitical tensions. Despite these headwinds, the global business travel market is still projected to exceed $1.6 trillion by the end of 2025. However, industry sentiment has shifted dramatically, with the positive outlook falling from 67% in November 2024 to just 31% in April 2025.
Source: Monthly Economy Travel Industry Summary – June 2025