The U.S. travel industry recovering with streamlined visa processing ahead of the major events: What news you need to know?

Thursday, October 31, 2024

The $1.3 trillion U.S. travel industry is on track for a faster recovery than anticipated, thanks to slashed visa processing times and streamlined travel measures aimed at welcoming international visitors. This rebound is projected to help the U.S. meet pre-pandemic tourism benchmarks sooner than expected, with anticipation building for a “mega-decade” of major sporting events, including the 2026 FIFA World Cup and 2028 Los Angeles Olympics.

In a joint announcement on October 29, Secretary of State Antony Blinken and Secretary of Commerce Gina Raimondo highlighted recent efforts to reduce visa processing delays, which have long hindered the recovery of U.S. tourism post-COVID-19. With international arrivals to the U.S. reaching only 84% of pre-pandemic levels by the end of 2023, this is a critical shift. In contrast, global competitors like France and Spain surpassed 2019 visitation levels the same year. One of the primary obstacles: extended visa processing times at U.S. embassies worldwide.

Record Visa Issuance and Reduced Wait Times
In the fiscal year leading up to September 30, the U.S. State Department issued a record-breaking 11.5 million visas, 8.5 million of which were visitor visas. The median wait time for first-time visa interview appointments has dropped dramatically, from over 400 days to just 60 days, Blinken reported. Plans are in place to increase visa appointments by an additional 1 million in 2025. This improvement is expected to boost U.S. travel, with forecasts projecting pre-pandemic levels of 79.4 million visitors by next year, and a potential 90 million visitors by 2026—a milestone initially expected for 2027.

A Major Decade for Tourism and Economic Growth
The U.S. is entering what Blinken and Raimondo referred to as a “mega-decade” for hosting international sporting events, which will significantly drive tourism. These events include the 2026 FIFA World Cup, co-hosted with Canada and Mexico, expected to draw millions of fans to U.S. cities like New York, Boston, Miami, and Dallas. The 2028 Summer Olympics in Los Angeles and the 2031 Rugby World Cup will also create an unprecedented influx of international visitors.

“These events represent a substantial economic boost,” said Raimondo, noting their potential to support employment. In 2023, total travel spending reached $1.3 trillion, with international arrivals contributing 12%, supporting over 15 million American jobs, and adding $2.3 trillion to the U.S. economy—equivalent to 2.5% of the national GDP. According to Raimondo, “Easing travel restrictions and processing delays will provide a significant boost to the travel and tourism industry.”

U.S. Travel Industry Poised for Global Competitiveness
The U.S. travel sector has welcomed these moves, which have been championed by the U.S. Travel Association. “The Biden administration’s efforts to reduce visa wait times make the U.S. far more globally competitive,” said Geoff Freeman, CEO of U.S. Travel. He emphasized that enhanced visa processing will secure the U.S. as a leading global travel destination for decades to come.

Additionally, wait times for U.S. passport processing have been reduced to 4–6 weeks, a notable improvement from the previous 6–8 weeks, with a record 24.5 million passports issued in 2024. Blinken noted that online passport renewal, introduced in September, is further accelerating turnaround times, with over a million Americans already utilizing the service.

As the U.S. ramps up efforts to streamline travel processes and prepares for major global events, the accelerated recovery in inbound tourism couldn’t come at a better time. With U.S. travelers curtailing spending and domestic trip demand softening, this influx of international visitors is set to give the U.S. travel economy a much-needed boost, positioning the industry for a strong, competitive future.