The number of tourists visiting the US was also down, falling three percent to 75.61 million, which saw the country narrowly maintain its second position as Spain experienced a 10 percent jump in visitors to 75.56 million.
The latter’s tourism industry has boomed partly because people who normally go to Turkey, Egypt or north Africa for their holidays are instead deciding to chase the sun in Spain, citing fears of unrest.
China came fourth in the ranking with just under 60 million visitors and Italy came fifth — the same as in 2015.
The classification is calculated according to the number of visitors who spend at least one night in a country.
But if the money earned from tourists is taken into account, the United States came a resounding first with $206 billion (173 billion euros) made in 2016, the UNWTO said.
Spain came second with around $60 billion — another rise compared to 2015 — followed by Thailand and China.
Britain, meanwhile, fell from third to seventh place at $34 billion due in part to the depreciation of the pound compared to the dollar after the Brexit vote to leave the European Union, added the UNWTO.