US remains world’s largest travel market but WTTC warns of growing competition - Get updated on what's happening in tourism!

The World Travel & Tourism Council warns that the United States remains the world’s largest Travel & Tourism market but faces increasing competitive pressure from fast-growing destinations, particularly in Asia-Pacific. The findings come from the organisation’s latest Economic Impact Research, produced in partnership with Chase Travel.

According to the report, the global Travel & Tourism sector recorded its strongest year ever in 2025, with GDP growth reaching 4.1%. In contrast, North America was the slowest-growing region, expanding by only 1.0%, while the United States recorded growth of just 0.9%.

At the same time, global international travel increased significantly. Around 80 million more people travelled abroad in 2025 compared with the previous year, yet fewer chose the United States as their destination.

International visitor demand weakens despite strong domestic travel

International visitor numbers to the United States fell by 5.5% compared with 2024. Spending by international travellers declined by 4.6% to US$176 billion.

Despite this slowdown, the United States continues to dominate the global tourism economy in absolute terms. The sector contributed US$2.63 trillion to national GDP in 2025, making it the largest Travel & Tourism market worldwide.

Domestic demand remains a key pillar of the sector. Spending by U.S. residents on travel reached US$1.54 trillion, up 0.3% year-on-year and 14.3% higher than before the pandemic.

Travel and tourism also continued to support employment growth. In 2025 the sector sustained 20.4 million jobs across the United States, an increase of 1.2% compared with the previous year, adding roughly 242,000 new positions.

Major events offer opportunity to strengthen international demand

According to WTTC, maintaining this momentum will depend on stronger international promotion and increased investment in the destination. Rebuilding global demand, improving perceptions of the country as a welcoming destination and ensuring competitive tourism products will be key priorities.

The organisation highlights upcoming major football tournaments in 2026 as an immediate opportunity. The events are expected to attract approximately 1.24 million international visitors, providing a platform to showcase the United States as a travel destination and encourage repeat visits.

Gloria Guevara, President and CEO of the WTTC, said: “The United States remains the largest Travel & Tourism market in the world and has an amazing foundation. To avoid losing its leadership position the U.S. must invest in promoting its attractiveness, both in international markets and during the summer of football; change perception and position the U.S. as a welcoming destination; and grow international visitor spend, encouraging stopovers and new experiences.”

Asia-Pacific gains momentum as fastest-growing tourism region

The report also highlights the rapid expansion of Travel & Tourism across Asia-Pacific. China, the world’s second-largest tourism market, recorded sector GDP of US$1.75 trillion in 2025, growing by 9.9% year-on-year.

International visitor spending in China increased by 10.5% to US$135 billion, while domestic spending rose by 10.7% to US$890 billion. The sector supported 84.6 million jobs in the country, an increase of 2%.

Across the wider Asia-Pacific region, tourism GDP grew by 8.2% in 2025 to reach US$3.29 trillion. Several destinations significantly outperformed the global average, including Malaysia with growth of 11.2% and Philippines with 10.8%. Other strong performers included China, India and Indonesia.

Jason Wynn, CEO of Chase Travel, said: “As WTTC’s latest research shows, the U.S. Travel & Tourism sector continues to demonstrate remarkable resilience, supporting millions of jobs and driving trillions of dollars in economic growth even amid global headwinds. With the U.S. set to host a series of global events through 2028, we have an extraordinary opportunity to welcome new visitors and bring travellers from around the world closer together, fostering meaningful connections across countries and communities.”

WTTC says it will continue working with governments and industry leaders to strengthen competitiveness, support sustainable tourism growth and ensure that the sector remains a driver of employment, investment and economic development worldwide.

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