US Tourism Faces Projected $11B Foreign Spending Drop

New York City generated $55.6 billion in direct visitor spending in 2025, leading the selected U.S. markets, though Orlando drew more visitors. The city’s major holiday attractions continue to draw travelers, even as high seasonal costs threaten to strain budgets. Nationally, the tourism outlook is weaker: international visitor spending is forecast to fall 6.3% to $163 billion in 2026, while domestic trips are expected to reach a record 2.44 billion. Declining overseas arrivals, higher travel costs and concerns about entry restrictions are adding pressure on destinations and tourism businesses, although the available figures do not establish that government policies alone caused the downturn. Democrats’ midterm gains in both chambers could increase scrutiny of policies affecting foreign visitors, but they do not immediately change the administration’s authority over immigration or guarantee a rebound in international travel.