Reflections from Abroad: Signals for the South
Greetings, Travel South Partners,
I spent the last week of June in London meeting up with friends and family. It was a much-needed time to recharge and connect. London was its usual vibrant self, full of gracious, polite people. I also caught up with tourism colleagues and hotel operators. One thing was clear: London’s international travel business is thriving, and American travelers are everywhere.
The optimism was so uplifting! Then, when I returned to the States, that feeling came to a halt with news headlines like this: Brand USA’s budget slashed to $20 million. Meanwhile, some international offices I spoke with have budgets in the hundreds of millions. It is a stark contrast and a brutal reminder that we are not competing on a level playing field.
So, for this month’s newsletter, I will start with the headwinds, then get to the momentum.
According to preliminary data from the National Travel and Tourism Office, overseas first-intended arrivals to the Travel South region through May 2025 were flat year-over-year, while national overseas numbers showed a modest 1% decline. Data released from Statistics Canada reports that arrivals to the U.S. dropped by 38% by auto and 14% by air this year through May 2025. And Tourism Economics forecasts a loss of $29 billion in international tourism in the U.S. this year.
International travel sentiment has also been low, and there is some pause, not a pullback. Travel South’s global partners are feeling it, too. In Benelux, pricing is a major concern, and family travel demand is softening with cancellations in bookings. Canadian travelers, while eager to explore, are shifting their focus inward due to cost, currency exchange, and policy sentiment. The federal government launched “Canada Strong Pass” on June 20 to promote domestic tourism.
But here is the good news. Despite uncertainty, Travel South’s global partners abroad remain confident and believe the U.S. market will bounce back, especially in the South. Style in Travel in Benelux is doubling down on its U.S. business. They are already seeing earlier requests for next year.
Digital platforms and social media efforts are ramping up because many travelers are choosing to postpone, not cancel, their trips, making it crucial to secure future bookings. Van Verre Reizen reported that one-fifth of their bookings were to the U.S, with interest in unique accommodation options. While there are fewer family trips, high-net-worth travelers are still crossing the Atlantic.
Another surprising development out of Canada is that flight prices have fallen, which seems counterintuitive during the peak holiday travel season. Direct airline routes to destinations in the South will positively affect inbound traffic. There are daily nonstop flights to several Travel South destinations, including Atlanta, Charlotte, St. Louis, Nashville, Raleigh, and Charleston, through Air Canada. Additionally, West Jet to Atlanta and Nashville, Delta to Atlanta, and American Airlines to Charlotte. That connectivity will matter as sentiment rebounds.
On the ground, city-level engagement remains strong. Thirty cities from the Region have already committed to the Travel South Global Champion City program, illustrating their long-term commitment. As Liz Bittner reminds us, “the South is not retreating, it is doubling down.” Going quiet is not the right strategy for this competitive environment.
Just recently, Travel South USA renewed and expanded its Global Partnerships with leading agencies across Australia/New Zealand, Benelux, Brazil, Canada, France, Italy, and the Nordic Region. It has also added new representation in India, one of the world’s fastest-growing outbound markets with significant potential for long-haul travel.
Beyond strengthening relationships, Travel South is rolling out a comprehensive digital, print, and activation co-op programs in September to target Canada, Germany, the United Kingdom, Ireland, Australia/New Zealand, and the United States. These initiatives are designed to increase brand awareness and drive conversion and ensure the South remains competitive and compelling.
As we are building momentum for fall and winter, be sure to attend upcoming events: The RTO Product Workshop in Franklin, Tennessee, and the Travel South International Showcase in Kansas City, Missouri. The tour operator registration is ahead of pace with 75% secured and many of them placed on sold-out FAMs and city tours.
As we look ahead, one thing is clear: today’s actions build tomorrow, and the Travel South Region is committed to global markets and investing strategically.
Global markets may ebb and flow, but the South’s welcome is irresistible.
Y’all Are Welcome! Always.