The US is set to lose $12.5 billion in tourism revenue this year alone, as visitors are put off by President Trump’s ‘America First’ policies and border crackdowns.
Tourist spending is set to fall by 7 percent in 2025 compared to last year, according to new data from the World Travel and Tourism Council (WTTC) first reported by Bloomberg.
The drop represents a staggering slide of 22 percent from America’s tourism peak in 2019. The US will be the only country set to lose tourism dollars this year, according to the WTTC.
‘Other countries are really rolling out the welcome mat, and it feels like the US is putting up a “we are closed” sign at their doorway,’ WTTC president and chief executive officer Julia Simpson told Bloomberg.
‘The US travel and tourism sector is the biggest sector globally compared to any other country, worth almost $2.6 trillion,’ Simpson explained.
America consistently ranks as one of the top international tourist destinations — typically in the top 3 globally, alongside France and Spain. Including domestic tourism it is the largest. A cut in visitors means jobs will go.
Millions of tourists pour into the US every year for family trips to Disneyland, relaxing beach holidays in Florida and to tick off bucket list sightseeing at places such as the Grand Canyon or the Statue of Liberty.
Direct and indirect tourism accounts for 9 percent of the American economy and contributes 7 percent of all tax revenue, according to WTTC and Oxford Economics data. It is behind only healthcare and finance.
Direct and indirect tourism accounts for 9 percent of the American economy
World Travel and Tourism Council president and chief executive officer Julia Simpson
The industry generates $585 billion in US tax revenue every year and employs 20 million people.
Tourists have delayed or cancelled their plans as a result of the Trump administration’s aggressive tariffs, immigration crackdowns and detainments at the border, according to data from the US Department of Commerce.
One of the most important groups to shift their behavior are the Canadians.
Canadians have long been the top international travelers to the US, driving $20.5 billion in spending last year.
However, following Trump’s tariffs on Canadian goods and threats to annex the country into the ’51st state’, many have opted to boycott American goods and services.
Canadian air travel to the US dropped by 13.5 percent in March compared to a year earlier, and those crossing the border by car fell by more than 30 percent, data from Statistics Canada revealed.
The shift has led vacation hotspots such as Palm Springs to run campaigns to try and lure back the Canadian visitors businesses depend on.
Other areas such as border towns with Canada, and popular summer vacations destinations in Maine, will also bear the brunt of the pullback.
Other major groups are also pulling back, with arrivals from the UK down 15 percent year-over-year in March, according to Department of Commerce data.
View of a woman taking selfie picture at the famous horseshoe bend by the Colorado river at sunset
Palm Springs has made its pro-Canada stance abundantly clear by hanging signs throughout the downtown area and airport
Tourist hotspots such as the Grand Canyon could miss out as international visitors pull back
Ski resorts such as Aspen in Colorado are popular draws for international tourists
New York has already revised down its tourism outlook for the year
Disney World in Orlando, Florida brings in many tourists on family vacations
Yellowstone National Park saw more than 4 million visitors last year
Skiing, particularly in places like Aspen, is a big area of tourism in the US
German visitors were also down 28 percent and South Korean trips declined by 15 percent in the same period.
Mexicans are also pulling back on travel to America, with flights down by almost a quarter last month compared to 2024, according to the Department of Commerce.
‘What we are seeing now is a sentiment shift that’s really very sad,’ Simpson told Bloomberg.
‘Legislators need not confuse the tourism sector with issues around illegal immigration.
‘A sophisticated system can balance both without turning [the country] into an island that no one wants to visit.’
