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$12.5 bn blow to US tourism! Lesser international travellers now interested as Trump era visa policies scare them off

In a dramatic turn to Donald Trump’s immigration crackdown and harsh visa policies, the World Travel & Tourism Council (W.T.T.C) has released shocking data that states that the US is set to lose $12.5 billion in international spending this year.

The spending on tourism is now expected to fall by 22.5 per cent, from $181 billion in 2024 to less than $169 billion, as per the Economic Impact Research report by W.T.T.C.

“The U.S. is welcoming fewer visitors from its neighbours and countries further afield, which is a clear indicator that the global appeal of the U.S. is slipping,” the report said, as per the Travel Weekly. It further added that this drop is expected to deeply wound jobs and businesses across the US. 

The reason? Media reports attribute this fall to the travellers who are increasingly feeling unwelcome. According to the NYT, this feeling is possibly driven by:

  • Trump-era immigration policies: Policies implemented during Trump’s presidency focused on stricter immigration enforcement.
  • Visa confusion: Uncertainty and complications regarding obtaining and using US visas.
  • Detentions at US entry points: Several well-publicised incidents of foreign travellers being detained and questioned at US airports and borders.

Julia Simpson, the CEO of WTTC, said in a statement, “This is a wake-up call for the U.S. government.”

“The world’s biggest travel and tourism economy is heading in the wrong direction, not because of a lack of demand but because of a failure to act. While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign.”

According to W.T.T.C, in 2024, the travel and tourism market in the US, also known to be the largest in the world, contributed a massive $2.36 trillion to the country’s economy. However, there’s a catch. 90 per cent of these earnings came from inter-nation or domestic travel. 

Remarking this, the W.T.T.C’s statement further read, “Homegrown tourism is masking a serious vulnerability: The international market is where the real growth lies, and the U.S. is losing its crown.”

In 2024, the United States saw 72.4 million international visitors, which marked a decrease of 7 million compared to 2019. International arrivals have continued to drop this year, with notable declines in March from major markets such as Canada, the UK, and South Korea, according to data from the U.S. Department of Commerce.

While part of this decline can be attributed to the late timing of Easter this year, which delayed a peak travel period, especially from Western Europe, many U.S. travel companies have adjusted their summer forecasts to account for the ongoing downward trend.

The United States is the only country among the 184 economies studied by the World Travel & Tourism Council (W.T.T.C.) and global economic advisory firm Oxford Economics expected to see a decline in international visitors in 2025. While the U.S. tightens immigration and increases border scrutiny, other nations, such as China, are easing visa requirements to boost international tourism.

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