In a surprising twist, Greece and other major tourist destinations including the United States, Thailand, Argentina, Brazil, Canada, and India are encountering significant challenges in tourism revenue. Despite a robust influx of visitors, these countries are grappling with a troubling dilemma: more tourists but less spending per visitor.
In 2024, Greece celebrated a historic milestone by welcoming 40.7 million visitors, a marked increase from 15 million in 2010. However, a deeper analysis reveals a concerning trend. According to Eurobank’s Economic Analysis and Research Unit, the average tourist’s expenditure has dramatically dropped, now sitting at €530.6 compared to €640.4 in 2010. Furthermore, when adjusting for inflation, real tourism income has declined by 1.6% since 2019.
Contributing to this phenomenon, the average length of stay has decreased from 9.3 nights in 2010 to only 5.9 nights in 2024. This reduction in stay duration further exacerbates earnings, despite nominal tourism revenue reaching €21.6 billion in 2024. The divergence between visitor numbers and spending raises questions about the sustainability of Greece’s tourism economy.
The United States is also facing a bleak forecast, predicting a $12.5 billion loss in international tourism revenue in 2025. This represents a concerning 7% drop from 2024 levels, leaving the U.S. nearly 22% below its pre-pandemic revenue peak. Among 184 global economies, it stands out as the only country expected to experience a decline this year.
Key factors contributing to this downturn include stringent visa policies, heightened political tensions, and unfavorable exchange rates. While domestic travel remains healthy, foreign visitors are spending less, prompting the U.S. travel industry to reassess its marketing and policy strategies for recovery.
In Thailand, a sharp decline in travelers from China is amplifying challenges for its tourism sector. A 5% drop in tourist arrivals during the first half of 2025 has been marked by a staggering one-third decline in visitors from China. This dip has predictably translated into reduced earnings for the country.
Despite ongoing promotions and visa waivers designed to attract travelers, Thailand’s revenue from tourism remains under pressure. With average spending per capita also decreasing, and many visitors opting for shorter trips and budget accommodations, the impact on hospitality and retail sectors is palpable.
Argentina similarly faces difficulties, largely due to a surge in its currency value. Once regarded as a budget-friendly destination, Argentina has become significantly more expensive for foreign travelers. Recent data indicates that tourist overnight stays have plummeted by 20.2%, leading to substantial revenue losses.
The Argentine government’s efforts to combat inflation resulted in a strong peso, inadvertently raising the cost of hotels, food, and attractions for international visitors. As hospitality prices rise and budget-conscious travelers look for alternatives, regions reliant on tourism are already sensing the financial strain.
Brazil’s tourism sector, once a beacon of growth in South America, is enduring a sluggish recovery from its pandemic-related downturn. Despite an uptick in visitor numbers since 2020, earnings have not rebounded to pre-pandemic levels.
Tourism GDP in Brazil suffered a severe decline, dropping more than half during the pandemic. While major events like Carnival continue to attract crowds, the average tourist’s spending remains lower than previously. Economic uncertainties and infrastructural challenges further complicate Brazil’s path to recovery.
Canada is witnessing a decline in cross-border travel, particularly from the United States. Data reveals a 15% drop in U.S. tourists entering Canada as of April 2025. This reduction directly impacts revenues derived from accommodation, dining, and leisure services.
Although Canada continues to be an attractive destination for nature-based tourism, high costs and lengthy airport wait times are discouraging international spending. In response, Canadian tourism boards are enhancing regional campaigns aimed at attracting higher-spending long-haul travelers.
India, which reported a strong tourism recovery in 2023, is now facing indicators suggesting a plateau in tourism growth. In 2023, foreign exchange earnings from tourism surged to $28 billion, marking a 31.5% increase from the previous year. Yet, early indicators in 2025 show that while tourist arrivals are increasing, per-visitor spending is stagnating.
Factors such as shorter itineraries, budget travel behaviors, and growing competition from regional destinations like Sri Lanka and the UAE are contributing to this slowdown in earnings. In response, the Indian tourism ministry is strategizing to focus on luxury tourism and wellness retreats to entice higher spending.
The rise of frugal travel is becoming an overarching trend reshaping the global tourism landscape. Tourists are increasingly prioritizing value over luxury, leading to shorter stays, decreased spending per night, and a preference for budget accommodations. This shift is exacerbated by economic uncertainty, inflation pressures, and caution stemming from the pandemic.
Significantly, while the total number of global travelers has surpassed pre-pandemic levels, revenue in many leading destinations has either stagnated or fallen. This signals a critical shift in the industry: an increase in visitor numbers does not guarantee profitability.
Unless tourist destinations adapt their tourism strategies to focus on quality, sustainability, and value-driven offerings, growth in revenue is likely to remain elusive. Governments and stakeholders across the globe must innovate to attract not just more visitors but those who are willing to spend more.
As tourism giants navigate this evolving landscape, it will be crucial for them to implement effective strategies that cater to modern travelers’ needs while ensuring long-term financial sustainability.
image source from：travelandtourworld
