US International Tourism Recovery Remains Uneven in 2025

A Mixed Picture for American Tourism

The United States' international tourism sector is showing an uneven recovery, with national inbound figures softening even as many state and local destinations post record-breaking spending numbers. Nationally, international tourism remains a critical economic engine, but travel exports — while nominally back near pre-pandemic dollar levels — have not kept pace once inflation is factored in, meaning the real-value recovery is weaker than headline figures suggest 1.

International Inbound Travel Slows

Fresh data from U.S. Travel paints a cautionary picture for the year now closing. International inbound travel spending fell 2.4% in 2025, dropping to $175 billion, while the number of inbound international visits declined even more sharply, down 6.3% for the year 2. That contraction underscores the gap between overall U.S. tourism activity and the specific performance of the international visitor segment, which tends to spend more per trip than domestic travelers and is closely watched as a barometer of America's global travel competitiveness.

Looking ahead, forecasters are cautiously optimistic. U.S. Travel projects a 1.6% rebound in international inbound spending for 2026, pushing the total to roughly $178 billion 2. Industry observers describe this as the start of a broader travel boom, though the projected recovery would only modestly exceed 2025's diminished base rather than represent a dramatic surge back to historic growth trajectories 2.

Local and State Markets Buck the National Slowdown

While the national international-inbound numbers softened, several state and local tourism economies reported record-setting years, driven largely by domestic leisure travel rather than international visitors. Virginia announced that statewide tourism spending hit a record $36.2 billion in 2025, marking the fourth consecutive year of growth, according to Governor Abigail Spanberger 45. Leisure travel was the dominant force behind that expansion, accounting for 90% of overnight visitation in the state 4.

At the city level, Durham, North Carolina also set a new high-water mark, with visitor spending reaching $1.17 billion in 2025, up 0.9% from the $1.16 billion recorded in 2024 3. Though modest, that growth adds to a pattern of steady, if unspectacular, gains in secondary and mid-sized U.S. destinations even as the broader international arrivals picture cools.

Why the Divergence Matters

Taken together, the data suggest two distinct storylines are unfolding simultaneously: a national international tourism sector grappling with reduced overseas visitation and inflation-eroded real spending gains 12, and a domestic leisure travel market that continues to power record revenues in specific states and cities 345. For policymakers and industry stakeholders, the challenge going into 2026 will be reversing the decline in international arrivals while sustaining the domestic leisure momentum that has propped up local tourism economies despite the headwinds facing inbound international travel.