NEW YORK: The outlook for US tourism has darkened in recent weeks, with industry experts warning of a sharp decline in international visitors. A combination of factors—including President Donald Trump’s policies, a strengthening dollar, and rising global tensions—has made travel to the US less appealing to many foreign tourists.
According to a recent report by Tourism Economics, the number of international travelers to the United States is projected to drop by 5.1 percent in 2025, a stark contrast to the previously expected growth of 8.8 percent. The economic impact is even more severe, with spending by foreign visitors anticipated to fall by 10.9 percent.
Adam Sacks, president of Tourism Economics, warned that the situation has worsened since the report’s publication. “The effects of antipathy towards the US are deepening,” he said, suggesting that the final numbers could be even lower than currently predicted.
Why is US may see a decline in tourism?
- Trade tariffs and foreign relations tensions: The Trump administration’s decision to impose tariffs on Canada, Mexico, and China—along with threats of similar action against the European Union—has contributed to a negative perception of the US. Additionally, Trump’s controversial foreign policies, particularly on Ukraine and Gaza, have further alienated some potential travelers.
- Stricter immigration policies: The US government’s aggressive stance on immigration has raised concerns among tourists and business travelers alike. Policies perceived as unwelcoming have led some organizations to reconsider hosting events in the US, while some companies have scaled back employee travel to the country.
- Stronger US dollar: The increasing strength of the US dollar has made travel more expensive for international visitors. Experts note that rising costs will likely reduce both the number of visitors and the average length of their stays.
- Warnings from foreign governments: Several European governments, including the UK and Germany, have recently advised their citizens to be extra cautious when traveling to the US, citing the risk of strict border enforcement and potential detentions.
- Declining Canadian tourism: Canada, which accounted for 20.4 million US visitors in 2024, has already seen a decline in travel to the US. Statistics Canada reported a 23 percent drop in the number of Canadians returning from the US in February, marking the second consecutive monthly decline.
In New York, where 12.9 million foreign travelers visited in 2024, tourism officials are already seeing the effects. Julie Coker, president of NYC Tourism, said Canadian tourists are canceling bookings and showing less interest in Broadway shows and hotel stays. While declines from the UK and Europe are not yet apparent, she noted that officials are closely monitoring the situation.
Tourists react: ‘A bit scared’ but still visiting
Despite concerns, some international tourists continue to visit the US. Marianela Lopez and Ailen Hadjikovakis, travelers from Argentina, admitted they were apprehensive about border policies but still made the trip, opting to use their European passports instead of their Argentine ones to avoid potential issues.
French tourist Laurent Lagardere, visiting New York with his family, expressed a pragmatic view: “The Americans elected this president. It’s democracy. If they’re not happy, they’ll change it in four years.” He added that avoiding the US would not change the political situation.
What’s at stake for the US tourism industry?
The tourism sector stands to lose approximately $64 billion in revenue in 2025 due to reduced travel, according to Tourism Economics. Industry professionals worry about the broader implications, particularly for major upcoming events such as the 2025 Ryder Cup, the 2026 FIFA World Cup, and the 2028 Summer Olympics in Los Angeles.
United Airlines and other carriers have already reported a “big drop” in Canadian travel to the US, along with declining domestic demand. Economic concerns, inflation fears, and recessionary warnings are also affecting travel confidence.
“This will make the US more expensive for inbound travelers, dampening both visitor volume and average length of stay,” Tourism Economics warned.
With foreign travel numbers falling and economic uncertainty looming, the US tourism industry is facing one of its most challenging periods in recent years.