The United States is facing a steep economic setback as a result of a significant decline in international tourism, with current estimates suggesting a potential loss of up to $21 billion in travel-related exports by the end of 2025. The projected loss comes amid rising diplomatic tensions and restrictive policies under the Trump administration that experts say are driving global tourists away from the U.S.
According to tourism data from the U.S. Travel Association and the Department of Commerce, international visits to the United States plummeted by approximately 14% in March 2025 compared to the same period in 2024. The slump has been particularly acute in major markets such as Canada (26% decline), Western Europe (17%), Asia (25%), and South America (10%).
Industry analysts have attributed the drop to a combination of aggressive immigration measures, erratic diplomatic posture, and an overall perception of the U.S. as increasingly unwelcoming to foreign nationals. The 14% decline translates to an estimated $21 billion in lost annual export revenue, as every 1% drop in visitor spending accounts for about $1.8 billion in economic loss.
The United States, once considered a premier destination for global tourism, now finds itself grappling with the consequences of restrictive visa policies, trade tensions, and shifting global alliances. Tourism has traditionally contributed roughly 2.5% to the U.S. GDP, supporting millions of jobs across the hospitality, retail, and transportation sectors. However, recent trends threaten the long-term viability of these industries.
California—one of the most visited states by international tourists—has reported a 15.5% reduction in Canadian visitors in just the first quarter of 2025. Major European tour operators such as France’s Accor Group and Voyageurs du Monde have reported declines of up to 25% in U.S.-bound summer bookings. This shift is sending shockwaves through the tourism supply chain and allied sectors.
The decline also marks a sharp reversal from a once-strong position: the U.S. travel sector had enjoyed a $50 billion surplus in 2015. In contrast, current estimates show the country running a $50 billion deficit in travel trade. Experts warn that if the trend is not reversed, it could cause long-term damage to America’s global standing and soft power.
Stakeholders from the travel industry are calling on U.S. policymakers to revisit and revise policies they say are driving tourists away. According to them, diplomatic repair, friendlier immigration processes, and international marketing campaigns are necessary to revive global interest in the U.S. as a welcoming destination.
In a broader context, the downturn in U.S. tourism underscores growing discontent with Trump-era policies abroad. Industry watchers believe the decline in travel is more than just an economic issue—it is a barometer of how the U.S. is perceived globally in terms of openness, stability, and cooperation.
Analysts are urging a swift policy reassessment to mitigate further losses and reaffirm America’s position as a top global travel destination. This includes addressing systemic issues that contribute to the current perception crisis while restoring confidence among international travellers and trade partners.
As other countries such as Canada, Egypt, and various Latin American destinations experience increased tourism numbers, it is evident that global travellers are finding alternative destinations that offer similar experiences with fewer barriers.
If urgent action is not taken, the U.S. risks ceding its competitive advantage in the global tourism market—potentially affecting employment, foreign exchange inflows, and the country’s broader economic recovery.