Billions of dollars could be lost due to foreign visitors having negative perceptions of the US. Many are blaming the tariff policy of President Donald Trump
The US economy is forecast to lose billions of dollars this year as foreign visitor numbers have taken a huge dive. Spending from foreign tourists is poised to plummet by $8.5 billion this year.
Research shows that many are turning their back on the US due to negative perceptions of trade and immigration policy. According to research published by Oxford Economics international arrivals to the US are expected to fall about 9 per cent this year.
It comes after President Donald Trump delivered remarks at U.S. Steel’s Irvin Works in West Mifflin, Pennsylvania, on Friday evening. His comments were met with applause in the crowd but slammed online for the way he came up with a 50% tariff rate.
“Travelers make choices: where and when to travel, when to book, and how long to stay and importantly, perceptions of the US matter,” Aran Ryan, director of industry studies at Tourism Economics, part of Oxford Economics, wrote in a research note last week.
He suggested the Trump administration “posturing and policy” connected to issues of tariffs and border security have unsettled long-standing trading partners and have created “sentiment-headwinds” among would-be travelers.
The World Travel & Tourism Council said it expects the economy to lose a “staggering” $12.5 billion in spending from international visitors in 2025. That is seen as direct blow to the overall economy and likely to hit communities, jobs, and businesses.
The foreign visitor spending decline works out to a drop of about 5 per cent relative to last year, data suggests and is a result of less foot traffic. Flight bookings to the US between May and July were down 11 per cent year over year as of April.
It all adds up to a weak outlook that leads to potential visitors looking elsewhere. Bookings from Europe and Canada are more than 10% and 33% behind, reports CNBC.
It is projected the US will lose $21 billion in travel-related revenue in 2025 if trends continue. Each 1% drop in spending from international visitors translates to $1.8 billion in lost revenue per year for the U.S. economy, according to the U.S. Travel Association.
The strong US dollar is also putting internationals off making the trip. That makes it more expensive for many foreign travelers.
It comes amid concerns about trade barriers. President Donald Trump has made tariffs a central part of his policy and tried to impose them on several countries.
Experts say much of the downturn in foreign visitors is about perception, whether fair or not.
