Brand USA Will 'Recalibrate Resources' to Market the U.S.

Brand USA executives set a largely optimistic tone during their summer board meeting Thursday, acknowledging the challenges ahead while highlighting promising developments and underscoring the imperative that they market the country effectively as a travel destination.

"Like many of you, we were disappointed by the reduction of Brand USA's federal matching funds in the recent congressional budget reconciliation bill, from $100 million down to $20 million per year," noted president and CEO Fred Dixon toward the beginning of the call. "That is a significant shift, and it will require recalibration of resources and programming going forward. But let me assure the board we are not standing still."

Dixon did not offer any details as to how the organization would adjust resources and programming. Rather, he and his fellow Brand USA colleagues discussed the details of the "America the Beautiful" marketing campaign that had been developed prior to the cuts, and shared data around this year's inbound tourism as well as forecasts for the near future.

He was also optimistic that the organization's funding would be reinstated.

"We are encouraged by our ongoing dialog with every level of the administration, and by the fact that the President's FY26 budget request includes full funding for Brand USA, and that's an important signal of support," Dixon continued. "We are optimistic that Congress will take up restoration this fall, and we know this industry will have a strong and unified voice in those conversations."

The U.S. in the spotlight

While international headlines have more recently been focused on the nation's border-tightening and ramped-up immigration restrictions and deportation policies, the U.S. is simultaneously preparing to host a number of high-profile international events over the next several years.

Dixon pointed to the America250 anniversary initiative, the FIFA World Cup and the Route 66 Centennial celebration as major events on the horizon; meanwhile, preparations are ramping up for the 2028 Olympics in Los Angeles.

"We have an opportunity to reaffirm the United States as the world's leading travel destination," said Dixon. "These events are more than milestones. They're powerful moments to inspire bookings, and ultimately boost the economies of local communities across this country."

Inbound visitation trends

While fewer travelers are visiting the United States compared to a year ago, the overall drops are not as significant as they are from some specific markets. According to the U.S. Department of Commerce, between January and June of this year, total international visitation — excluding Canada and Mexico — was down 1.2 percent year-over-year, or down just 0.3 percent among the top 20 markets, again excluding Canada and Mexico.

That said, Canada and Mexico remain the largest source markets for the U.S. by a wide margin. So the impact from those drops will most certainly be felt. Tourism Economics forecasts an 8 percent drop in international inbound travel for 2025, with an expected 20 percent year-over-year drop in visitors from Canada, and a 5 percent decrease in those from Mexico. Germany and South Korea are also expected to drop by double digits (each by 10 percent), with France dropping by 8 percent.

Interestingly, Japan, Brazil and India visitation are all expected to increase year over year.

Somewhat promising is the fact that while Tourism Economics predicts international visitation to drop by 8.2 percent this year, growth is expected to resume in 2026, with the number of visitors in 2027 surpassing the total from 2024.

Marketing the country effectively

With Brand USA's new America the Beautiful campaign, the organization aims to break through the headlines with a campaign that focuses on the American people and taps into nostalgia, authenticity and epic experiences across the country. Likewise, the organization hopes to harness the excitement generated by the upcoming international events to showcase the many cities that are participating.

"We know our partners are feeling some uncertainty right now, and our message to them is that we are building opportunities for them that are flexible, scalable and are underpinned by this dynamic new platform," said Dixon.