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Donald Trump's foreign policy calls scaring away visitors? US tourism projected to dip in 2025: Report
International traveller arrivals in the US are expected to decline by 5.1 per cent in 2025 compared to last year, according to Tourism Economics
After Donald Trump took office, his administration were firing all cylinders, in a bid to protect US interests, with a crackdown on immigration, tariffs against various countries, and even a bid to buy Greenland. Now, it seems, US tourism may suffer, due to the Trump administration's policies scaring away potential visitors.
A report by Tourism Economics, an Oxford economics company, stated that international traveller arrivals in the US are expected to decline by 5.1 per cent in 2025 compared to last year. Earlier, foreign tourist arrivals had been a projected to increase by 8.8 per cent.
The company predicted that spending on tourism will also likely decline by 10.9 per cent.
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Trump's foreign policy calls
This cloudy outlook on tourism comes amidst Donald Trump's foreign policy decisions, which may have adversely affected potential visitors, along with a fear of a surge in prices and a stronger dollar.
Since early February, the US Travel Association has warned that enforcing tariffs would severely deter Canadians, the most frequent travellers to the US. In 2024, there were 20.4 million Canadians who travelled as tourists to the US.
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The report identified three “channels of impact” which could harm the US tourism industry, especially after President Trump initiated a trade war with China, Canada and Mexico, among several other countries, by slapping 25 per cent tariffs on all imports.
Travel Sentiment: As per the report, tense diplomatic relations and economic uncertainty could lead to lesser travel interest from countries which contribute a large amount towards tourism, including Canada, Mexico, and the EU.
Economic Pressures: A slowdown in US economic growth, as well as economic downturns in Canada and Mexico if 25 per cent tariffs go into effect, would also curb travel demand.
Exchange Rate Shifts: A stronger US dollar, resulting from tariff-induced economic shifts, would make travelling to the US more expensive for international visitors, further lessening demand
Antipathy towards the US
President of Tourism Economics, Adam Sacks told news agency AFP, that since the report was published, “the situation has deteriorated further,” and that these are the “effects of antipathy towards the US.”
The report also stated, “A situation with polarizing Trump Administration policies and rhetoric will discourage travel to the US. Some organizations will feel pressure to avoid hosting events in the US, or sending employees to the US, cutting into business travel.”
The sentiment was echoed by the World Tourism Forum Institute which stated that the combination of strict immigration policies, a strong dollar and global political tensions "could significantly affect" international arrivals, "potentially reshaping the nation's tourism sector for years to come."
In a survey conducted by YouGov in December 2024, 35 per cent of the residents of 16 European and Asian countries stated that they were less likely to visit the United States under the Donald Trump administration.
Tourists from Western Europe, who comprised 37 per cent of visitors in 2024, are now the most likely to choose other destinations, followed by Canadians and Mexicans.
As per estimates calculated by Tourism Economics, the sector could lose close to $64 billion in revenue in 2025, due to the declining level of travel.
