Why U.S. Tourism Fell in 2018: Key Causes and Impact

Recent research from Tourism Economics shows that international visits to the United States grew by just 2 percent year over year. While modest growth is better than decline, the figures reveal shifting patterns in global travel and some notable declines in key source markets.

Visits from the Asia-Pacific region fell by 0.9 percent, and arrivals from Canada dropped by 9 percent. At the same time, travel from the Middle East and Mexico increased, though those gains did not reach the levels seen in 2013. These mixed trends point to a more competitive international travel landscape and changing preferences among global travelers.

Part of the decline for the United States appears tied to stronger growth in other destinations. Europe and the Asia-Pacific region each recorded about 6 percent increases in international arrivals, drawing travelers who might otherwise have chosen the U.S. Several factors help explain the shift: a stronger U.S. dollar, which raises costs for foreign visitors, and geopolitical or economic tensions that can influence travel decisions. In particular, trade tensions between the United States and China likely played a role in the decrease of visitors from Asia.

Despite the overall soft performance, some markets posted solid increases. Tourism Economics identified stronger visitation from Spain, Italy, Brazil, the Netherlands, Germany, Japan, South Korea and Argentina. These increases reflect a combination of renewed interest in U.S. destinations, marketing efforts, route expansions by airlines, and favorable conditions in those source markets.

Looking ahead, Tourism Economics is cautious about prospects for 2019. A high U.S. dollar makes travel to the United States more expensive for many international visitors, and uncertain global economic conditions could further dampen demand. Together, those factors suggest that U.S. inbound travel may face headwinds in the near term.

For U.S. tourism stakeholders, the report underscores the importance of adapting strategies to remain competitive. Options include tailoring marketing campaigns to target markets showing growth, adjusting pricing or package offerings to offset currency effects, and enhancing connections with airlines to improve access from underperforming regions. Strengthening partnerships with international tourism boards and leveraging digital channels to highlight unique U.S. experiences can also help attract visitors.

At the traveler level, prospective visitors weigh many considerations when choosing destinations: exchange rates, flight availability, perceived value, safety and political relations, and the appeal of specific experiences or events. As global competition for tourists intensifies, destinations that offer clear value and compelling reasons to visit will likely capture more of the available demand.

In summary, while international arrivals to the United States rose slightly, the growth was uneven across markets. Declines from parts of Asia and Canada contrast with gains from several European and Latin American countries. With a strong dollar and uncertain global economic conditions, Tourism Economics expects continued challenges in the coming year, making it essential for U.S. tourism interests to respond with targeted marketing, improved access and offerings that increase value for foreign visitors.