A significant number of foreign soccer fans are opting out of the upcoming 2026 World Cup, which could potentially impact the anticipated economic gains for U.S. hotels and host cities, a new industry report highlighted on Monday.
According to the American Hotel and Lodging Association’s U.S. Hotel Outlook Report, nearly 80% of hotel operators in nine out of the 11 U.S. host cities noted that their bookings are falling short of initial expectations, despite over 5 million tickets already sold.
FIFA has either canceled or released about 70% of larger room block bookings, leading to a surplus in the market and cancellations soaring to 95% in some locations.
The AHLA attributes this trend to various factors including delays in visa processing, concerns about immigration enforcement, rising airfare, a robust U.S. dollar, and geopolitical tensions, which are dissuading international travelers from making the trip.
These would-be visitors were expected to spend around $5,048 each, significantly more than typical international tourists, with one-third intending to stay in multiple cities for over two weeks.
The report suggests that the anticipated economic benefits might be less than initially forecasted. Even with 5 million tickets sold, this hasn’t translated into strong hotel occupancy. It highlighted that domestic travelers currently outnumber their international counterparts, which could hinder the overall economic impact the tournament was intended to yield.
In a previous meeting at the White House, President Trump had stated that the event could inject $30 billion into the U.S. economy and create nearly 200,000 jobs, referencing an analysis done with FIFA and the World Trade Organization backing up this figure.
Trump also mentioned efforts to ease travel for international fans, aiming to streamline the entry process for them next summer.
One important consideration that the report didn’t touch on is the high cost of tickets, which many fans find quite steep. For instance, tickets for the U.S. national team’s match against Paraguay on June 12 begin at $1,000.
As the report notes, the atmosphere for international travelers seems less welcoming than expected. Many could face longer visa processes, increased fees, and lingering uncertainty regarding immigration, which casts a shadow over the general excitement surrounding the tournament.
While hotel bookings are rising for American fans, they still aren’t enough to compete with the spending of international patrons, which the study pointed out.
National revenue per available room is projected to rise by 1.7% during the World Cup period in June and July, but without the tournament, growth would shrink drastically to just 0.2%.
Stability has been noted in Atlanta and Miami, with about half of the airlines in Atlanta and 55% in Miami reporting bookings that meet or exceed expectations, thanks to factors like leisure demand and efficient flight operations.
On the other hand, the outlook is not so bright in areas like Kansas City, where 85% to 90% of hotels generally remain booked in late summer, while cities such as Boston, Philadelphia, San Francisco, and Seattle are underperforming by nearly 80%. New York, Dallas, and Houston are also struggling.
Hotel chains had invested heavily in preparations, such as fan zones and increased security, but now find themselves facing a dip in bookings, prompting them to reassess their spending just ahead of the World Cup.
The report also warns that state and local tax increases could exacerbate the situation. In New Jersey, for instance, plans to raise the lodging tax from 5% to 7.5% and hike taxes on prepared foods could cost 17 counties an additional $110.5 million monthly.
Philadelphia is proposing to increase its hotel tax from 8.5% to 10.5%, which could impact up to 1,900 jobs and lead to a loss of $154 million in economic activity along with affecting 192,000 hotel rooms.
The report stresses that imposing new sales taxes now may deter visitors from choosing New Jersey.
The tournament is scheduled to take place from June 11 to July 19 across 11 U.S. cities, including Seattle, San Francisco, Los Angeles, and New York/New Jersey. The U.S. team will kick off against Paraguay on June 12 at SoFi Stadium.
AHLA is urging FIFA to clarify the status of remaining room blocks and is calling on U.S. authorities to expedite visa processing while avoiding new taxes and fees.
Concluding, the report emphasized that maintaining policy restraint and operational transparency could be key to unleashing potential economic benefits.
Hotels are still hopeful for a last-minute surge in bookings as the tournament approaches, expecting casual fans to jump on board. However, as the opening day nears, the lodging industry, which has high hopes for this major soccer event, is in need of urgent adjustments.
