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USA in tourism low: Trump policy costs billions!
The decline in international tourism in the US could cause billions in losses for the economy in 2025, primarily due to Trump's policies.
USA in tourism low: Trump policy costs billions!
The U.S. economy is facing a significant decline in international tourism revenue. According to a recent report by FR.de The loss could be as high as $8.5 billion in 2025. The Trump administration's trade and immigration policies are identified as the main cause of this decline.
Foreign tourists' negative perceptions of the United States are fueled by intense media coverage of border security incidents and national travel advisories. Since January 2025, the Trump administration has taken tough immigration enforcement measures, which experts say could lead to an 8.7 percent decline in international arrivals.
Worrying numbers
In the first quarter of 2025, the U.S. experienced an 11.6% year-over-year decline in international visitors, representing 7.1 million international visitors - 260,000 fewer than the same period last year. The declines from Europe are particularly drastic: Germany reported almost 30%, Denmark and Iceland over 30%, while Austria, Norway, Spain and Switzerland recorded falls of over 20%. The decline is also coming from the Caribbean (-26%) and Central America (-24%).
The forecasts are also alarming. Analysts expect a 20% decline in visitors from Canada and a decline of around 6% in tourists from Western Europe. In addition, flight bookings to the USA are expected to decline by 11% between May and July 2025. Such drastic numbers are already having a noticeable impact on the tourism industry: airlines such as United Airlines have grounded 21 aircraft, while the hotel industry has seen bookings decline between 20 and 50%.
Reasons for the decline
The Trump administration's political rhetoric has significantly damaged the US's image as a hospitable travel destination. Stricter entry regulations, aggressive action by US immigration authorities and reports of deportation detention in the event of entry problems are other factors contributing to the declines. In particular, the uncertainties for the trans community caused by new entry regulations and Trump's customs policy have put a strain on international tourism.
The tourism industry, which contributes 2.5% of U.S. GDP, could face a deficit of up to $9 billion. Experts like Jukka Laitamaki estimate the economic impact to be between $60 billion and $120 billion, theoretically this could affect many sectors of the US economy, including hospitality, transportation and retail.
The long-term impact of the “Trump effect” is difficult to estimate. Industry analysts from TravelPerfect predict further deterioration, with international arrivals falling by up to 9.4%. Additionally, bookings between Canada and the US were found to have plummeted by 75% in April 2025.
Travelers wishing to fly to the USA are advised to thoroughly inform themselves about entry requirements, prepare their trip carefully and avoid political discussions during entry. Examining alternative travel destinations could also be a useful measure.