The tourism industry in the United States is expected to suffer a staggering loss of $64 billion this year, as revealed in a report by Tourism Economics for Oxford Economics. This decline results from a significant drop in both international and domestic travel, with foreign visitation forecasted to decrease by 5.1% in 2025 compared to 2024, a stark contrast to a prior positive outlook.
According to Adam Sacks, president of Tourism Economics, the sentiment towards America has soured, largely due to the Trump administration’s policies. Increased tariffs and restrictive immigration measures have transformed the U.S. into an unwelcoming destination for many foreign travellers. Alongside these policies, cuts to international aid and polarising foreign initiatives have further diminished the U.S.’s appeal.
The World Tourism Forum Institute warns that these global tensions and stringent immigration regulations, coupled with a strong dollar, threaten long-term American tourism trends. A YouGov survey conducted in December across various European and Asian nations revealed that only 22% of respondents felt inclined to visit the U.S., while 35% expressed reluctance under the Trump administration.
Interestingly, not all tourists have been deterred. A survey in Times Square indicated that some, including visitors from France and Argentina, felt unfazed by Trump’s policies. As Marianela Lopez and Ailen Hadjikovakis stated, they chose to come to the U.S. hoping for a familiar experience despite initial fears.
Conversely, a notable number of tourists are reconsidering their plans to visit the U.S. Canadian travellers, typically a significant demographic in U.S. tourism, have reported a 23% annual decline in cross-border trips. In New York City, which previously welcomed millions of international tourists, hotel cancellations from Canadians are on the rise, heavily impacting the local economy.
Moreover, Western European nations are advising their citizens against travelling to the U.S. due to potential risks, signalling a larger shift in travel preferences. This evolving sentiment suggests that many are seeking safer and more welcoming destinations for their vacations, leaving the U.S. to grapple with its tourism crisis.
The U.S. tourism sector could lose up to $64 billion in 2025 due to declining international visitors, spurred by the Trump administration’s trade wars and stricter immigration policies. Reports show a deterioration in sentiment towards America, prompting many international travellers to seek other destinations. While some tourists remain unaffected, there is a noticeable trend of avoidance from Canadians and Europeans, warning of broader implications for U.S. tourism’s future.
The U.S. tourism industry faces a monumental crisis, largely driven by the fallout from the Trump administration’s policies and rising global tensions. With an expected loss of $64 billion in 2025, the sector is witnessing declining visitor numbers and shifting travel patterns. While some remain undeterred, a significant portion is exploring alternatives, indicating that America’s global tourism landscape may never be the same.
Original Source: m.economictimes.com
