As of mid-2025, the United States 🇺🇸 faces a unique and ongoing decline in both international tourists and students. This trend stands out globally, with the country experiencing measurable losses in revenue, jobs, and cultural vibrancy—especially in sectors and regions that depend heavily on foreign visitors and international education. To help readers understand the scope and implications of this situation, this article compares the impacts of declining international tourism and international student enrollment on the U.S. economy, communities, and policy landscape. It also offers a side-by-side analysis of requirements, timelines, and costs for each sector, weighs the pros and cons for different groups, and provides a decision-making framework for stakeholders.
Introduction to the Options Being Compared

The two main options under review are:
- The Tourism Industry: This includes all economic activities tied to international visitors, such as hotels, restaurants, retail, transportation, and entertainment.
- U.S. Colleges and Universities: These institutions rely on international students for tuition revenue, research contributions, and cultural diversity.
Both sectors are vital to the U.S. economy and society, but each faces unique challenges and consequences from the current decline in international engagement.
Side-by-Side Analysis: Requirements, Timelines, and Costs
Tourism Industry
- Requirements for International Visitors: Most travelers need a valid U.S. visa, such as the B-2 Tourist Visa. The process involves an application, payment of a non-refundable fee, and an interview at a U.S. embassy or consulate. Processing times can range from a few days to several months, depending on the applicant’s country and local demand. For more details, see the U.S. Department of State’s Visitor Visa page.
- Timelines: The time from application to visa approval varies widely. Recent backlogs have increased wait times, sometimes exceeding six months in high-demand countries.
- Costs: The B-2 visa application fee is $185 as of 2025. Additional costs include travel to the embassy, supporting documents, and sometimes third-party service fees.
U.S. Colleges and Universities (International Students)
- Requirements for International Students: Students must be accepted by a U.S. college or university, receive a Form I-20 (Certificate of Eligibility for Nonimmigrant Student Status), and apply for an F-1 Student Visa. The process includes paying the SEVIS fee ($350), the visa application fee ($185), and attending a visa interview.
- Timelines: The process can take several months, from university application to visa approval. Delays in visa processing have become more common, with some students waiting up to a year.
- Costs: International students pay higher tuition than domestic students, often two to three times as much. For example, annual tuition at a public university can exceed $30,000–$40,000, not including living expenses, health insurance, and travel.
Economic Impact: A Detailed Comparison
Tourism Industry
- International visitor spending is a major economic driver, generating about $1 trillion annually and accounting for roughly 3% of U.S. GDP and 4% of overall employment.
- In 2025, international visitor spending is projected to fall from $181 billion in 2024 to just under $169 billion, a 22.5% decline from the previous peak. This represents a loss of about $12.5 billion in spending this year alone.
- The drop in spending is expected to cause a $23.17 billion reduction in U.S. GDP and eliminate over 230,000 jobs, with labor income losses of $13.25 billion.
- The most affected states are New York, Florida, California, Nevada, and Texas, where tourism is a key economic pillar.
U.S. Colleges and Universities
- International students contribute nearly $44 billion annually to the U.S. economy.
- A 20% decline in enrollment could mean a loss of $1.7 billion in tuition revenue.
- University towns and local economies that rely on international students for housing, food services, and transportation are seeing economic contraction and job losses.
- Reduced tuition revenue may force universities to cut academic programs, reduce scholarships, lay off staff, or raise tuition for domestic students.
Pros and Cons for Different Situations
Tourism Industry
Pros:
– When international visitor numbers are high, the tourism industry supports millions of jobs and brings in significant tax revenue for local governments.
– Tourism boosts related sectors like dining, retail, and transportation, creating a ripple effect throughout the economy.
– International visitors add cultural diversity and vibrancy to cities and towns.
Cons:
– The industry is highly sensitive to global events, visa policies, and competition from other countries.
– A decline in international visitors leads to job losses, business closures, and reduced services.
– Local governments lose sales and lodging tax revenue, affecting public services and infrastructure.
U.S. Colleges and Universities
Pros:
– International students pay higher tuition, helping universities fund scholarships, research, and academic programs.
– They contribute to the local economy through spending on housing, food, and transportation.
– International students bring global perspectives, enrich campus life, and often stay to become skilled professionals in the U.S.
Cons:
– Heavy reliance on international tuition can make universities vulnerable to sudden drops in enrollment.
– Reduced international student numbers can force schools to cut programs, lay off staff, and raise tuition for domestic students.
– University towns may face long-term economic decline if student populations shrink.
Social and Community Impacts: A Closer Look
Tourism Industry
- Visible job losses and business closures are becoming common in hospitality-focused cities. Residents notice less vibrant downtowns, fewer events, and a general decline in community energy.
- Cultural exchange suffers as fewer international visitors means fewer opportunities for Americans to interact with people from around the world.
- Community events and festivals that rely on international participation are being scaled back or canceled, affecting local economies and social life.
U.S. Colleges and Universities
- Reduced university offerings: Funding shortfalls force universities to cut academic programs, lay off staff, and reduce scholarships, making higher education less accessible and diverse.
- Less cultural diversity: Fewer international students mean fewer global perspectives on campus, less language exchange, and a less dynamic learning environment.
- Neighborhood decline: Towns built around universities may see long-term economic decline, with empty apartments, closed businesses, and fewer community events.
Long-Term Consequences for the United States 🇺🇸
Tourism Industry
- The U.S. risks losing its status as a top global destination if the decline continues. Other countries are actively courting international tourists with easier visa processes and better marketing.
- A shrinking tourism trade surplus (now a deficit exceeding $50 billion in 2025) affects the country’s balance of payments and overall economic health.
- Local economies that depend on tourism may struggle to recover, leading to persistent unemployment and reduced public services.
U.S. Colleges and Universities
- The country risks losing global talent and influence as fewer international students choose to study in the U.S. Many of these students become innovators, entrepreneurs, and skilled professionals who drive the American economy.
- Decreased innovation and research leadership: International students contribute significantly to university research output. Their absence could reduce America’s competitiveness in science, technology, and other research-intensive fields.
- Higher costs for domestic students: With less revenue from international students, universities may raise tuition or reduce financial aid, making college less affordable for American families.
Recommendations for Specific Circumstances
For Tourism-Dependent Communities and Businesses:
- Diversify offerings: Consider attracting more domestic tourists or expanding into new markets.
- Advocate for policy change: Work with local and national organizations to push for visa reform and improved international marketing.
- Invest in staff training and retention: Prepare for future rebounds by keeping skilled workers engaged.
For U.S. Colleges and Universities:
- Expand recruitment efforts: Build partnerships with schools and organizations abroad to attract more international students.
- Support domestic students: Increase financial aid and support services to offset potential tuition hikes.
- Invest in online and hybrid programs: Reach students who may not be able to travel due to visa delays or restrictions.
For Local Governments:
- Plan for lower tax revenues: Adjust budgets and prioritize essential services.
- Support affected workers: Offer retraining programs and job placement services for those in hospitality, retail, and education sectors.
For Domestic Students and Workers:
- Seek scholarships and financial aid: Stay informed about changes in tuition and available support.
- Consider alternative career paths: Explore opportunities in growing sectors or retrain for new roles if affected by job losses.
Decision-Making Framework
When deciding how to respond to the decline in international tourism and student enrollment, consider the following:
- Assess Local Dependence: How much does your community or institution rely on international visitors or students? The higher the dependence, the greater the need for immediate action.
- Evaluate Financial Resilience: Do you have reserves or alternative revenue streams to weather the downturn?
- Monitor Policy Changes: Stay updated on visa policies, government support, and industry trends. The U.S. Department of State provides official updates on visa requirements and processing times.
- Engage Stakeholders: Work with local businesses, educational institutions, and government agencies to develop coordinated responses.
- Plan for the Long Term: Invest in strategies that build resilience, such as diversifying revenue sources, expanding recruitment, and supporting affected workers.
Policy Environment and Stakeholder Perspectives
The World Travel & Tourism Council (WTTC) and the U.S. Travel Association have called for urgent government action, stressing that the decline is not due to lack of demand but rather slow visa processing and limited international marketing. According to analysis by VisaVerge.com, experts recommend streamlining visa procedures, investing in infrastructure, and launching global marketing campaigns to restore the country’s competitiveness.
Universities are also lobbying for policy reforms to make it easier for international students to obtain visas and for more support in recruiting abroad. Local governments in tourism-dependent regions are seeking federal assistance to offset lost tax revenue and support affected workers.
Background and Historical Context
After a strong rebound in domestic travel following the COVID-19 pandemic, the U.S. saw international arrivals and spending drop sharply in late 2024 and into 2025. This decline is driven by visa backlogs, stricter immigration policies, and increased competition from countries like Canada 🇨🇦, Australia 🇦🇺, and the United Kingdom 🇬🇧, which have made it easier for international visitors and students to enter.
The U.S. is now the only major economy among 184 analyzed by WTTC and Oxford Economics to experience a decline in international visitor spending in 2025.
Future Outlook and Anticipated Developments
Without significant policy changes, the decline in international tourism and student enrollment is expected to continue, deepening economic and social impacts. Potential responses include:
- Streamlining visa processing to reduce wait times and make the U.S. more attractive to visitors and students.
- Enhancing international marketing to rebuild the country’s image as a welcoming destination.
- Investing in infrastructure to improve the visitor experience and support university recruitment efforts.
Universities are exploring new partnerships and online programs to reach students who may face travel restrictions. The U.S. Travel Association and WTTC continue to lobby for government action.
Practical Guidance and Next Steps
- Tourism businesses should prepare for continued revenue shortfalls and consider diversifying their offerings.
- Universities need to plan for budget adjustments and increased support for domestic students.
- Local governments must anticipate lower tax revenues and plan for essential services.
- Workers in affected sectors should seek retraining and support services.
- Domestic students should look for scholarships and stay informed about tuition changes.
For official updates on visa policies and requirements, visit the U.S. Department of State’s visa information page.
Conclusion
The sustained decline in international tourists and students is having deep and widespread effects on the United States 🇺🇸. The tourism industry and U.S. colleges and universities are both facing major challenges, with economic contraction, job losses, and reduced cultural diversity. The most noticeable changes are visible in local economies tied to tourism and education, higher unemployment in affected sectors, and a less globally connected society. By understanding the differences and similarities between these sectors, stakeholders can make informed decisions and advocate for policies that support recovery and long-term resilience.
Learn Today
B-2 Tourist Visa → A nonimmigrant visa permitting foreign nationals to visit the U.S. temporarily for tourism, valid with application and interview.
F-1 Student Visa → A visa for international students accepted by U.S. institutions, allowing study with an approved Form I-20.
SEVIS Fee → A $350 charge supporting the Student and Exchange Visitor Information System, required before F-1 visa application.
Visa Processing Time → The duration between application submission and visa approval, varying widely by country and demand.
International Visitor Spending → Money spent by foreign tourists in the U.S., a major contributor to GDP and employment sectors.
This Article in a Nutshell
In 2025, U.S. tourism and international student declines deeply impact economy and jobs. Visa delays, costs, and policy challenges drive losses. Both sectors face unique hardships, threatening cultural diversity and economic growth. Recovery requires visa reform, marketing, and local adaptation, highlighting a critical juncture for America’s global role and community vitality.
— By VisaVerge.com