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US-Tourism-Faces-Decline-Amid-Ongoing-Policy-Shifts

US Tourism Faces Decline Amid Ongoing Policy Shifts

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US Tourism Faces Decline Amid Ongoing Policy Shifts

by Giezel Garcia
04/26/2025
in Trade Policies

The number of overseas visitors to the United States has decreased by 11.6% in March compared to the previous year, with a notable decline of 17.2% in travelers from Western Europe, according to US government data. This decline follows the implementation of various policies under the Trump administration, including high-profile deportations and tariffs, which have made the US a less appealing destination for some international travelers.

For many travelers, like Cheryl from St. Kitts, concerns over safety and political climate are influencing their decisions to visit the US. Cheryl, who typically spends around $10,000 on a trip to visit family in Iowa, has chosen to cancel her travel plans this year, citing safety concerns. Her decision reflects a broader sentiment, as reports of detained travelers and policy shifts have led to uncertainty and reluctance among potential visitors.

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This drop in tourism has been particularly noticeable from countries like Canada, where tensions related to political rhetoric have led to a reduction in flight bookings and car visits to the US. In addition, international tourism was expected to rebound following the COVID-19 pandemic, but current trends indicate a sharp decline instead, with forecasts predicting a 12% decrease in international travel to the US in 2025. Adam Sacks, president of Tourism Economics, estimates that this could result in a $10 billion loss in international travel spending for the year.

European countries, such as Spain and Germany, have seen significant declines in the number of visitors to the US, with figures showing 25% and 28% fewer visitors, respectively. In response, some European countries have updated their travel advisories for the US, which may further dampen travel to popular destinations. For example, ticket sales for the Statue of Liberty have dropped by 6% in April, and hotel bookings in New York City have decreased by 20% compared to last year.

The tourism industry, which is a major part of the US economy, is also feeling the effects. In Los Angeles, where the hospitality sector employs hundreds of thousands of people, local leaders express concern over the impact of declining tourism. “People don’t think it’s good, they don’t think it’s fair, so why would they go to America?” said Jackie Filla, president of the Hotel Association of Los Angeles.

President Trump has downplayed the significance of the decline, claiming that the US remains a major tourism destination. “We treat our tourists great. We’re the tourism capital of the world,” he stated, dismissing concerns about the impact of reduced visitor numbers.

The effects of this downturn are not limited to international visitors. The broader US economy, particularly industries like entertainment, retail, and transportation, is also feeling the ripple effects. Domestic travel is expected to be affected as well, with rising costs linked to ongoing trade tensions potentially reducing Americans’ disposable income.

Tourism experts predict that both Democratic and Republican-leaning states will experience the impact of these trends. States such as Florida, Texas, California, and New York, which are heavily reliant on international visitors, are expected to face significant challenges in the coming year.

Discover top stories in supply chain logistics news on The Supply Chain Report. For free tools related to international trade, visit ADAMftd.com.

#USTourismDecline #TourismTrends #USPolicyChanges #TravelIndustryImpact #TourismEconomy #USTravel #PolicyShifts

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