The data: While Americans’ appetite for international travel remains strong, foreign travel to the US continues to weaken.

• More than 56.2 million US residents traveled overseas last year, up 4.4% YoY and 25.3% from prepandemic 2019, per the International Trade Administration (ITA).
• That momentum carried through the first two months of this year, although the number of Americans traveling abroad is now down 1.3% through July, per another set of ITA data.
• International arrivals to the US are down 3.6% YoY through July and remain 15.9% below prepandemic 2019 levels.
• That weakness runs counter to the global trend, as roughly 307 million tourists traveled internationally in Q1 2026, up 2% YoY, per UN Tourism.
• Even the World Cup didn’t provide the surge in demand that many expected, as international arrivals to the US rose just 0.2% in June and fell 3.0% in July.

The context: 2026 was supposed to be a rebound year for the US travel and hospitality industry, with the World Cup, the semiquincentennial of US independence, and the centennial of Route 66 giving international travelers multiple reasons to visit.

Instead, inbound tourism continues to struggle after falling 5.4% in 2025, even as global tourism grew 4%, per UN Tourism. That contrast suggests that US-specific factors—including strict immigration policies, LGBTQ+-related passport concerns, tighter border security, and currency fluctuations—are discouraging some international travelers from visiting. The pullback is particularly acute among Canadians, with travel to the US falling 25.4% YoY last year and remaining significantly depressed through the first four months of this year, per Statistics Canada.

Implications for travel, hospitality, and retail companies and marketers: The outlook is growing more challenging as inflationary pressures tied to the war in Iran add to other potential drawbacks, making the US less appealing to international travelers.

The economic consequences extend well beyond airlines and hotels. International visitors spend across restaurants, entertainment, attractions, and retail, so fewer arrivals translate into lost sales for a wide range of businesses. With even marquee events like the World Cup failing to meaningfully lift inbound travel, companies that were counting on a tourism rebound may need to recalibrate their expectations for the rest of the year.

At the same time, Americans’ relatively resilient appetite for overseas travel creates another headwind for domestic businesses. Dollars spent on hotels, restaurants, shopping, and entertainment abroad are funds that aren’t flowing to US businesses, adding to the pressure on companies competing for discretionary spending.

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