International travel is booming again, but a growing share of visitor spending is skipping the United States. In May 2025, the World Travel & Tourism Council told Reuters that foreign visitor spending in the U.S. is projected to slip to just under 169 billion dollars in 2025, about 7 percent below 2024 and the only absolute decline among 184 countries studied.
At the same time, the U.S. government’s National Travel and Tourism Office expects about 77.1 million international arrivals this year, up from 2024, which implies the pressure is falling on spend per trip, not purely on headcount
Neighboring countries
The closest signs of diversion are on the U.S. border. Canada’s official arrival indicator shows non-resident trips to Canada by air rose 3.1 percent year over year in July 2025, even as overall cross-border flows weakened, a signal that some North American trips are being re-routed or kept within Canada. Statistics Canada also reports that screening for international flights outside the United States increased 9.4 percent in July, while transborder traffic to the U.S. softened further.
To the south, Mexico is capturing sustained demand. Government data cited by Mexico Business News show a record 2.6 billion dollars in tourism revenue for May 2025, up 6.3 percent year over year, even with mixed air-arrival comparisons month to month. That revenue record aligns with what travelers are feeling on the ground: more flight options and competitive packages for short-haul beach trips.
New travel corridors
Travelers are following value and simplicity. In Europe, WTTC’s 2025 outlook reported by Reuters points to international tourist spending rising about 11 percent to roughly 838 billion dollars, with Spain and France singled out for record seasons.
Spain alone set an all-time high of about 94 million international visitors in 2024 and entered 2025 expecting more, according to Spain’s tourism ministry statements reported by Reuters. When destinations post records, airlines add seats and tour operators scale inventory, which usually means more choice and sharper off-peak pricing.
Asia is drawing long-haul travelers for a different reason: currency. Japan’s tourism agency told Reuters that visits hit 10.54 million by March 2025, the fastest ever start to a year, helped by a weak yen that stretches day-to-day budgets for hotels, food, and rail passes. The same report noted a record 36.87 million visitors in 2024, so momentum is not just seasonal.
Closer to the U.S., the Caribbean continues to hold its own. A joint report from ForwardKeys and the Caribbean Hotel & Tourism Association found summer 2025 flight searches tracking at least in line with 2024, a sign that intent remains steady across the region even as travelers weigh price and paperwork elsewhere.
Fewer visitors than 2019, and softer spending now
Context helps explain the shift. NTTO data show the U.S. welcomed 72.4 million international visitors in 2024, still below the 79.4 million of 2019, with recovery continuing through 2025 toward 77.1 million if forecasts hold. Spending has been the weak spot. The WTTC forecast relayed to Reuters suggests 2025 foreign visitor spending will remain below 2024, and the Wall Street Journal, citing NTTO’s monthly ledger, reported a nearly 3 percent year-over-year drop in July 2025 to 11.3 billion dollars.
Policy friction is another factor that travelers notice before they click “book.” Reuters reported that a new 250-dollar U.S. “visa integrity fee” for many non-visa-waiver visitors is due to start October 1, 2025, lifting the all-in cost for a standard visa application. For students, families, and tour groups trying to hold budgets steady, an extra mandatory fee can tilt destination choice.
What this means for travelers
For an American teen or young adult deciding where to go, these shifts are an opportunity to shop the trend.
- If you are Europe-curious, the WTTC Europe outlook via Reuters implies lots of capacity and strong competition among airlines. That often translates into better prices in spring and fall, especially for Spain and France.
- If East Asia is your dream trip, Japan’s record pace suggests deals will pop up around shoulder seasons, and day-to-day costs can feel friendlier because of the yen.
- If you want beaches without long flights, the Caribbean’s steady demand and Mexico’s revenue momentum indicate healthy route maps and package options. Compare secondary islands and alternate Mexican gateways for value.
- If you are hosting overseas friends in the U.S. after October 1, 2025, budget for the 250-dollar visa fee, which Reuters reports is coming into effect for many non-visa-waiver nationalities.
Conclusion
Multiple data points tell a consistent story. WTTC’s forecast relayed to Reuters points to a U.S. spending dip in 2025, even as NTTO expects more arrivals. Meanwhile, Europe, Japan, Mexico, the Caribbean, and Canada are benefiting from a mix of value, easier entry, and strong airlift.
If you are planning with a student budget, let the data guide you. Travel off-peak, watch exchange rates, and choose destinations where policy and pricing make your money go further.
Sources
- Reuters, citing WTTC, U.S. foreign visitor spending is projected to fall about 7 percent in 2025 to just under 169 billion dollars.
- NTTO forecast: the United States is set to welcome about 77.1 million international visitors in 2025.
- Reuters: Europe’s 2025 international tourist spending seen up about 11 percent, with Spain and France heading for records. Reuters
- Reuters: Spain hosted about 94 million international visitors in 2024 and expects further growth in 2025. Reuters
- Reuters citing JNTO: Japan surpassed 10 million visitors by March 2025 at a record pace, after a 36.87 million record in 2024. Reuters
- ForwardKeys + CHTA: Caribbean summer 2025 demand indicators show searches tracking at least in line with 2024. caribbeanhotelandtourism.com
- INEGI via Mexico Business News: Mexico set a record 2.6 billion dollars in tourism revenue in May 2025, up 6.3 percent year over year. Mexico Business News
- Statistics Canada: non-resident arrivals to Canada by air up 3.1 percent year over year in July 2025; international flights outside the U.S. up 9.4 percent. Statistics Canada+1
- Wall Street Journal citing NTTO: July 2025 international visitor spending in the U.S. down nearly 3 percent year over year to 11.3 billion dollars. Wall Street Journal
- Reuters: 250-dollar U.S. “visa integrity fee” for many non-visa-waiver visitors scheduled to begin October 1, 2025.
