Statistics by the United States Travel Association have revealed that the country may lose an estimated $21 billion in travel-related exports by the end of 2025, if it does not address factors contributing to the decline in international travel to the U.S.
According to the association, preliminary data from the Department of Commerce, U.S. Customs and Border Protection and outside organisations revealed that international visits to the United States fell approximately 14 per cent in March 2025 compared to the same period last year.
They estimated that every one per cent drop in international visitor spending equals $1.8 billion lost in export revenue yearly, and if the 14 per cent decline were to hold through 2025, the U.S. stands to lose $21 billion in travel-related exports.
The decline is most notable in Canada with 26 per cent, Western Europe 17 per cent, Asia 25 per cent, and South America recorded a 10 per cent decline in visits in March.
The U.S Department of Commerce also indicated a nearly 30 per cent drop in visitors from major European Union Countries and an 11.6 per cent year-over-year decrease in foreign tourism in March, marking the sharpest decline since the Global Financial Crisis.
California, a key tourism hub, also saw a 15.5 per cent reduction in Canadian visitors in February and March. The report says travellers are now choosing alternative destinations such as Canada, Egypt, and Latin America over the United States.
Analysts have attributed the downturn to diplomatic tensions, the Trump administration’s immigration policies, tariffs on trade partners, a broader perception of instability and unwelcoming attitudes toward foreigners.
These factors have led to cancellations and changes in travel plans, with some experts warning that the U.S. risks losing its status as a global hub for tourism and international talent. The decline in tourism has contributed to a shift from a $50 billion travel trade surplus in 2015 to a $50 billion deficit today.
Experts have also said the recent downturn in U.S. tourism, particularly from Europe, signifies a growing discontent with American policies under the Trump administration. This decline has not only impacted the economic landscape but also signals a shift in international relations and perceptions of the United States.
Beyond the statistic, the decline also reflects the broader economic implications for the U.S. economy, where tourism contributes around 2.5 per cent to the GDP, as well as its impact on the various sectors, including hospitality, retail, and transportation.
Major European travel operators. Like French hotel group Accor and Voyageurs du Monde have also raised concern over the decline in travel to the U.S. This followed a significant drop in bookings from Europe, with Accor experiencing a 25 per cent decrease in summer bookings.
With a notable decrease in European visitors, stakeholders are raising alarms, urging a reassessment of policies to address these challenges. It was noted that the tourism decline is a reflection of broader geopolitical tensions, emphasising the need for policies that foster international understanding and cooperation. They maintained that addressing these issues is crucial for restoring America’s image and appeal as a top travel destination.
As international tourists bypass the U.S. for other destinations, it is important that policymakers and industry leaders reconsider strategies and address the underlying causes of this shift. Understanding the factors influencing these travel decisions is crucial to reversing the trend and sustaining the U.S.’s appeal as a travel destination.
