China is now on track to become the world’s top tourism economy in the next few years as a sharp drop in foreign visits sets the U.S. back.
The Chinese travel and tourism economy grew 9.9% last year, more than twice the global rate and much faster than the 0.9% pace registered by the U.S., according to new data by the World Travel & Tourism Council (WTTC), a trade group, and lead research partner Chase Travel.
That’s in large part due to a more than 10% pickup in spending by foreign tourists to China in 2025 — a sharp contrast to the nearly 5% drop in outlays by visitors to the U.S.
If both countries continue to grow at similar rates, China could become the world’s largest tourism economy by the end of the decade, said WTTC President and CEO Gloria Guevara.
“While the U.S. is shrinking, China is rising at a fast rate,” Guevara said in an interview. “If this continues, in three to four years it will close in on the U.S.”
The U.S., which has long ranked as the world’s top vacation destination with tourists flocking to places like Disney World and Times Square, has seen a sharp pullback in foreign arrivals amid tighter immigration restrictions and rising geopolitical frictions.
Some 68 million people visited the U.S. from abroad last year, a 5.5% drop from 2024, according to the International Trade Administration. While events like the FIFA World Cup are expected to boost the U.S. tourism sector this year, disruptions to global travel from the Iran war could hinder a more meaningful recovery.
The U.S. travel and tourism sector contributed $2.6 trillion to global gross domestic product last year, while China added $1.8 trillion, according to the WTTC.
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