Since the election of Donald Trump as President of the United States, there has been a notable decline in the number of tourists visiting America, a trend that experts warn could have significant economic repercussions. According to recent data and analyses, this reduction in international travel to the US, coupled with global boycotts of American products, may cost the country—and by extension the President—billions of dollars.
Data released by the International Trade Administration indicated a nearly 10% drop in foreign arrivals by air to the US in March compared to the previous year. Goldman Sachs Group Inc has projected that, in a worst-case scenario, these behaviours could lead to a 0.3% decrease in the nation’s gross domestic product. This would translate into an economic loss of approximately $90 billion (£68 billion).
Contributing to this trend are changes in travel plans and consumer habits in various countries. Curtis Allen, a Canadian videographer, spoke to Bloomberg about his decision to cancel a trip to the US following the implementation of punitive tariffs by the Trump administration against Canada. He stated, “We’re not just staying home... We’re going to go spend the same money somewhere else.” Allen also reported that he had cancelled his Netflix subscription and was avoiding American products at his local supermarket, taking extra time to check product origins.
Concerns over border security and immigration procedures have also played a part in deterring visitors. Recent reports have suggested that some travellers face increased scrutiny, including potential checks of their mobile phones by US border authorities under a new policy targeting social media accounts. Brian Honan, CEO of BH Consulting, explained on Newstalk that border officials possess legal authority to search travellers’ devices similarly to luggage. Honan noted, “So, if they do find material that is illegal or offensive, it could mean you are either detained or refused entry.”
The decline is especially pronounced among Canadian tourists. Flight reservations from Canada to the US are down by 70% for the period from now until September compared to last year, according to OAG Aviation Worldwide. This follows high-profile incidents such as that of Canadian actor Jasmine Mooney, who was detained for nearly two weeks after her work visa was revoked during an attempt to file a new application.
European travellers are also reconsidering trips to America. Sébastien Bazin, CEO of the hospitality company Accor SA, reported a 25% decrease in summer bookings. Bazin partly attributed this to a "bad buzz" stemming from recent border detentions involving a French and a German tourist, which have reportedly influenced potential holidaymakers to choose alternative destinations.
Despite these trends, the US still attracted record spending from international tourists in 2024, with figures reaching $254 billion (£191 billion) according to the International Trade Administration. Predictions before the intensification of trade tensions and detentions anticipated up to 77 million overseas visitors this year. However, these figures now face uncertainty due to changing global perceptions and policies under the current administration. The Mirror is reporting on these developments and their potential impact on the US tourism sector and economy at large.
Source: Noah Wire Services