Holidaymakers from countries most affected by Donald Trump’s trade tariffs are increasingly avoiding the United States for their travel plans, while both UK and US holidaymakers are trending towards domestic vacations amidst rising economic concerns. This trend is underscored by findings from the hotel search site Trivago, which reported notable declines in bookings to the US from key markets such as Canada, Mexico, and Japan.

Johannes Thomas, the chief executive of Trivago, noted that the site has seen double-digit drops in reservations from these regions. Specifically, while demand from Germans for trips to the US has also decreased—albeit more moderately—interest from British travellers remains stable. This reflects a broader trend in which travellers from nations subjected to tariffs are reconsidering their preferences. As tariffs imposed on more than 180 countries by the Trump administration continue to create friction in international relations, the repercussions on tourism are becoming increasingly evident.

Recent data shows that bookings from Western Europe have suffered a 17% decline in March 2025 compared to the previous year. Countries like Germany and Ireland experienced reductions exceeding 20%, primarily attributable to political tensions and the perception of an inhospitable environment for travellers in the US. Those in the US are also reconsidering their holiday choices, with Thomas pointing out that consumer connectivity to the stock market and levels of personal debt make them particularly sensitive to economic fluctuations. Amidst these concerns, US citizens are opting for less expensive accommodation options and shortening their travel budgets.

The implications of this downturn extend beyond individual choices; the US tourism sector, which contributes approximately 2.5% to the national GDP, is facing significant challenges. Industry analysts forecast a reduction in international tourism levels, projecting that the US economy could see a decline of up to $71 billion due to decreased overseas travel. This economic pressure is reflected in the strategies of major airlines and hospitality firms, who are reporting reduced bookings and increasing cancellations from international markets.

As citizens navigate through higher expenses related to travel — influenced by rising airfare and accommodation costs — a pronounced interest in staycations is evident. In the UK, for instance, demand for domestic trips surged by 25% year-on-year in the critical summer period. Preferred destinations for British travellers now heavily feature cities like London and Edinburgh, with the latter seeing an almost 30% increase in bookings. Despite geopolitical tremors and economic challenges, the resilience of British travellers is notable, with a reported 16% increase in overall travel demand for the peak quarter ending in September.

As international sentiment toward the US continues to sour, tourism from Canada specifically is seeing marked declines, with visits down by 13.5% in March 2025 alone. Conversely, travel to Mexico has increased, suggesting a shift in Canadian holiday preferences as they seek more welcoming destinations. This redirection not only erodes the US’s share of international tourism but also solidifies Mexico's economic foothold, as tourism constitutes a notable contribution to its GDP.

As the global travel landscape evolves rapidly alongside political and economic developments, industry leaders remain watchful. The balance between maintaining a competitive tourism sector and addressing the repercussions of economic policies will be crucial for the US in the coming years, particularly if the trend towards domestic tourism persists.

Source: Noah Wire Services