Travel Industry Should Be Using Its Economic, Political Power to Combat Trump’s Destructive Policies

And can the US travel industry be the savior to reverse the worst of Trump’s reign of terror?

By Karen Rubin, [email protected], news-photos-features.com

The US travel industry is a behemoth in the American economy and society, accounting for 2.5% of GDP, one in 10 jobs, with some of the largest and thousands of the smallest businesses (90 percent of America’s 450,000 travel businesses are “small”). Comprised of travel, transportation, hospitality, attractions, and the scores of businesses that support these services, travel is the 1^st, 2^nd or 3^rd largest industry and employer in every state and every nation around the world. The industry has also been the most consistent in providing upward mobility for low-income, working class, women, people of color, and immigrants. And while e-commerce, technology and now A.I. will certainly impact the travel industry, this remains an immutable truth: travel is about face-to-face, people-to-people connections, and even as other industries may become more automated, robotic, techno, even as airplanes and taxis become self-driving, the workforce will remain disproportionately human.

And the travel industry has been on the forefront of and provided models for sustainability, responsibility, social enterprise – inventing e-commerce (the first online airline reservations systems), yield management (more efficiency, less waste, more profit), loyalty systems; the industry has provided a model for “green” hotels, farm-to-table dining, and low-carbon transportation (cruise company, Hurtigruten, already has a zero-carbon ship on order even though the technology hasn’t been invented yet); the mega-ships have invented sanitation systems; and the model for social consciousness, contributing a portion of guest fees back into the community for environment, heritage and cultural preservation, education, clean water projects.  

The US travel industry generated $1.3 trillion in travel spending, with an economic impact of $2.9 trillion (2.5% of national GDP) in 2024, directly employing 8 million, supporting another 7 million jobs (in 2025, there were 1 million job openings). That includes $876 billion in domestic leisure spending, $312 billion in business travel spending, and $181 billion in international inbound spending, according to the U.S. Travel Association (https://impact.ustravel.org/national).

So I cannot understand how the industry has not used its significant economic and political clout to fight back against the dictator wannabe Trump’s policies which disproportionately hurt the travel industry – starting with his unconstitutional travel bans (19 countries), raising visa requirements and fees, expelling visa holders or barring people from entering the country; inciting political violence while doing nothing to curb gun violence (multiple countries have travel advisories against coming to the USA). The Trump tariffs and unraveled alliances have triggered anti-American feelings (the USA for years had been the Number 1 destination on bucket lists). His anti-immigrant, anti-democratic policies, his declaration of war against “the enemy within” (that is, anyone who opposes or criticizes him) and climate of fear, intimidation are not a good look for posters inviting the world to visit.

International travel, it should be noted, is an export, and had helped contribute to a favorable trade balance – that is, more money coming in than going out – which Trump obsesses about. Contributing $187 billion to the economy in 2024, travel services are the “top services export for our nation and has the unique ability to generate a trade surplus for the US economy,” the USTA reported.

But because of Trump’s economic and foreign policies, the USTA has had to revise its previously bullish projections for 2025, based on the booming Biden economy, low unemployment, strong wage growth and strong dollar:

The U.S. Travel Association’s updated Travel Forecast now projects little growth in travel spending for 2025 and a significant decline in international inbound travel—a critical driver of the U.S. economy, jobs and global influence.

“The latest forecast signals both opportunity and warning for America’s travel economy. While domestic travel is holding steady, the continued decline in international visitors threatens billions in spending and thousands of jobs. The next decade can be one of extraordinary growth, but only if we act decisively. Outdated systems, excessive visa wait times and new travel deterrents are driving global visitors elsewhere. The U.S. must lead by modernizing travel infrastructure, streamlining entry processes and sending a clear message: America is open for business.”

“Travel is one of the most dynamic industries in the world, a powerful engine of economic growth that supports nearly one in 10 American jobs, contributes $2.9 trillion to GDP and provides opportunities for millions of Americans,” the USTA stated. “Beyond economic impact, travel fosters social cohesion, strengthens cultural understanding and enriches lives by boosting health [and wellness], resilience and lifelong learning. Domestic travelers are forecast to spend $1.2 trillion in 2025, fueling communities nationwide. International visitors are estimated to spend $173 billion this year, making travel America’s largest services export. Yet visits are expected to drop from 72.4 million in 2024 to 67.9 million in 2025—the first decline since 2020—before rebounding with major events in 2026” including FIFA World Cup and the 250^th anniversary of independence. (Worthwhile to read the list of offenses against King George III in the Declaration of Independence, signed July 4, 1776.)

Travel is a “cash cow” for localities that may have seen their coal mines boarded up and factories and warehouses shuttered, but convert them into tourist attractions. Travel – even with the harms that over-tourism can cause – is overwhelmingly a clean, renewable industry that brings in cash without requiring the infrastructure needed to support residents, like schools and hospitals, but boosts the local economy and keeps people from leaving their hometowns for work elsewhere and provides the economic resources that preserve history, heritage, culture and environment. Travel is also a significant instrument of “soft power” – that people-to-people connection and conjoined livelihood.

Trump’s tariffs and threats to crush Canada’s economy so it submits to becoming the 51^st state has caused Canadians to effectively boycott the USA (so many snowbirds selling off their Florida condos), and is on track to cost the US economy $6 billion and 14,000 jobs. The Chinese market, once a booming business has dropped off. The often violent and random snatching of people of color (because of how they look is justification) in Trump’s mass deportation crusade produces television images such as of a Chilean tourist being arrested and detained by police in Manhattan, stranding her 12-year old daughter in the middle of the street; and the German tourist who was refused entry at JFK airport and sent back, burst the image that Brand USA has labored to establish to attract international visitors.  (A broader crackdown where German tourists, even those on visa-free travel or with ESTA authorizations, were detained and deported after being deemed inadmissible prompted Germany to update its travel advisories for the U.S.)

Nor are the nationwide “No Kings” protests against fascism, tyranny, particularly welcoming images for international tourists.  

It can’t be good for tourism to Chicago, Portland, Washington DC, Los Angeles, for Trump to say, in turn, each is the “most dangerous place on earth” being burned to the ground by radicals and insurrectionists (how can each be “the most dangerous?”) effectively declaring war on Americans (is that not the definition of a civil war?) to justify turning each Democratically-led city into a war zone. And Homeland Security Secretary Kristin Noem’s threat to send ICE to Superbowl to round up Latinos at Bad Bunny’s half-time show will likely keep people home.

Trump’s speech to the United Nations General Assembly, basically attacking their policies to address Climate Change (“The carbon footprint is a hoax made up by people with evil intentions and they’re heading down a path of total destruction”) and the desperation of millions of migrants escaping climate disasters, conflict, violence and war (“It’s time to end the failed experiment of open borders…you’re destroying your heritage”).

At the same time, the federal government is slashing its spending on promoting international visits into the US (once again, an “export” that contributes to the trade balance Trump is obsessive about). Republicans cut the allocation to “Brand USA” promotional campaign from $100 million to $20 million. The U.S. Travel Association said it is “deeply concerned,” asserting that every $1 spent on marketing returns $25 to the U.S. economy (an ROI of 1:25) and warning such drastic cuts will “significantly impact every sector of our industry” for years to come.

In yet another self-inflicted hammer blow to the US economy, cutting off access to coronavirus and flu vaccines and discouraging measles vaccinations, will discourage people from going out in public, going to restaurants, theater, and traveling altogether – and if they are smart, other countries will require vaccinations and tests for American tourists just as they did during Covid-19 pandemic. Then there is the anti-vaccination campaign that should discourage international visitors from coming to the US where they could rightly fear contracting some horrible, previously eradicated disease, just as Americans pull back from traveling to places where there is Zika virus or Ebola.

Indeed, 2025 was forecast to be a banner year for the travel industry, both domestically and globally, largely because of historic lows in unemployment, historic gains in wages and strong consumer confidence (thanks President Biden!) – that is, until January 20, 2025 when Trump issued his first salvos. The damage to the economy because of the Trump tariffs, inflation, mass deportations, erratic economic policies, mass government layoffs by DOGE, put the brakes on bookings. The drop in consumer confidence (the most reliable predictor of travel purchases) was almost an immediate change in what travelers were booking. Traveling abroad also became more expensive for Americans, who were riding a wave of historically strong dollar and now are seeing a weakening, which means their dollars do not travel as far. International inbound travel, a $…billion business (and marked down as a trade export) is projected to decrease in 2025 for the first time since 2020,

Here is a list of impacts of Trump’s policies (compiled with the help of Google’s Gemini AI):

Reduced travel and spending:

• Decline in visitor numbers: Inbound travel to the U.S. this year is expected to decline for the first time since 2020, according to a recent report from the U.S. Travel Association. Inbound visits are projected to fall 6.3% to 67.9 million – roughly 85% of 2019 levels. It’s a significant drop from the group’s previous forecast in January, which projected an 8.8% increase to 78.8 million visits.
• Loss of visitor spending: The World Travel & Tourism Council projects that the U.S. will be the only country among 184 studied to experience a drop in foreign visitor spending in 2025. This decline is forecasted to be billions of dollars.

Impact of specific policies

• Tariffs and political rhetoric: “America First” policies and trade tensions with countries like Canada, Mexico, and China have contributed to anti-American sentiment and a drop in travel from these key markets.
• Visa restrictions:
  • New fees: A new $250 “visa integrity fee” and higher visa bond requirements increase the cost and complexity for travelers from non-visa waiver countries, such as Mexico, Argentina, India, Brazil, and China.
  • Narrowed eligibility: The administration has narrowed eligibility for waivers of in-person nonimmigrant visa interviews, creating potential processing backlogs.
• Travel bans and immigration enforcement:
  • Travel bans: An expanded travel ban, implemented in June 2025, suspended entry for nationals of 19 countries. The ban has also created uncertainty for students and workers from affected regions.
  • Border enforcement: Increased immigration enforcement and reports of detentions at the border have created fears and led some countries to issue travel warnings for their citizens visiting the U.S..

Affected traveler groups and economies

• Canadian travelers: One of the most significant declines is from Canada, with visits plunging sharply in 2025, impacting U.S. border economies.
• European visitors: Western Europe has also seen a decline, with industry reports citing lower airline bookings and anti-American sentiment.
• Business vs. leisure travel: While leisure travel has been particularly impacted, corporate travel spending is also experiencing a decrease.
• Industry and sector impact: The downturn affects a wide range of industries, including aviation, hospitality, and restaurants, particularly in tourist-heavy cities and border communities.

Global context and shifting trends

• Competition from other countries: As international travel to the U.S. has slowed, other nations like Japan, Vietnam, China, and Middle Eastern countries have seen their tourism sectors benefit.
• Resilience factors: Not all international travel has been affected equally. Arrivals from some South American countries, for instance, have actually increased. A strong U.S. dollar, however, adds to the cost burden for many international visitors.

The travel industry is also directly affected by Trump and the Republicans’ $1 trillion cut to Medicaid and ending the Obamacare subsidies, which will cause tens of millions of Americans to lose health care, and tens of millions more to see premiums and costs skyrocket (that is, if you even have a hospital or a doctor to go to). This is why the Democrats’ radical move to shut down the government to preserve health care subsidies is so crucial (hardly “trivial” or “Nonsense” or “ridiculous” as Speaker Mike Johnson, Leader John Thune and Trump have chided). The shutdown harms the travel industry disproportionately, but so does the loss or explosive cost of healthcare: this industry hires a disproportionate number of minimum, low-wage and low-middle-income individuals (who have excellent opportunities to rise up and not stay stuck in minimum wage jobs, mind you) and are likely disproportionately affected by the loss of the Obamacare subsidies and the crippling increases (even doubling) in health care premiums.

Moreover, a huge anchor for the travel industry are retirees and empty nesters who simply cannot afford such discretionary purchases as travel if their healthcare costs increase (Medicare is not free; drug insurance is not free). Just how much? Consider that a 60-year old couple earning $85,000 will see their health care costs double, from $12,000 to $24,000 a year. That’s not sustainable.

So why isn’t the travel industry using its clout to counter Trump policies (which go against everything the travel industry stands for: cooperation, peace, shared prosperity, curiosity, open-mindedness, openness to diversity, cultural differences and pride)?

A key reason may well be the fact that travel is precisely that: so diverse, made up of so many different segments – luxury, middle market, mass market, domestic, international, family, business, special occasion, short getaways, far away bucket list – that there are ways to economize or circumvent  or substitute in order to salvage a vacation – that is, until there isn’t. Also, the segment that is almost never impacted is the luxury travel market, which with the top 1% scoring billions of dollars in gains (not to mention tax cuts), is more robust than ever – it’s the small businesses (the vast majority of the travel industry), the ones that depend upon national parks staying open or international tourists buying souvenirs that struggle and suffer the most. (According to Tourism Economics, the travel economy is at risk of losing $1 billion a week due to disruptions in air and rail travel and the closure of national parks and museums.)

Another key factor is that the travel industry, way more than the media conglomerates that have capitulated and kowtowed to Trump in order to get approvals for mergers and government contracts, is totally dependent upon favorable government policies – everything from regulation, approvals, taxes, licenses, fees. (Look what happened when Trump again reversed Obama and Biden and shut down travel to Cuba again.)

You can appreciate the dependence when you consider how destructive the federal government shutdown by Trump and the Republicans is to the travel industry, and how it is using the shutdown as an “opportunity” to shut down infrastructure projects like the Hudson River Gateway, charging stations for EV cars and essentially all clean-energy projects around the country.

The government shutdown – like all his policies – affect the travel industry the most – directly and indirectly – affecting consumer confidence, discretionary spending, job security, not to mention services (air traffic control, TSA, access to national parks, monuments, attractions). Travel maybe the #1 priority for discretionary spending, but decisions are still shaped by income and perception.

During the October 2025 federal government shutdown, the travel industry is estimated to lose approximately $142.8 million per day. This figure comes from the U.S. Travel Association, which projected a $1 billion weekly loss for the travel economy. The estimate includes the impact on tourism, transportation, and hospitality.

Factors contributing to daily losses:

• Disruption to air travel: Essential personnel, such as Transportation Security Administration (TSA) officers and air traffic controllers, are required to work without pay. If the shutdown is prolonged, staffing shortages from unpaid absences can lead to longer security lines, flight delays, and cancellations.
• National park closures: During a shutdown, national parks and monuments may close or have significantly reduced services, impacting tourism and local economies that rely on visitor spending. In some cases, states may use their own funds to keep parks open, but services are still limited.
• Reduced consumer confidence: An Ipsos survey found that 60% of Americans would cancel or avoid air travel during a shutdown, which has a ripple effect on the travel economy.
• Halted government services: The shutdown suspends the hiring and training of new air traffic controllers, which further exacerbates existing staff shortages in the aviation industry.
• Impact on small businesses: Millions of travel-related small businesses suffer from lost revenue and reduced wages.

But they don’t care how many businesses shut, how many jobs are lost, how many communities suffer because the MAGA movement is about isolationism to prevent “pollution” from other cultures or ideas; and being against diversity and multiculturalism, or a global perspective (globalism is the enemy). They want to be able to reshape and control culture and thinking, which can’t happen if people meet face-to-face or travelers see for themselves what it is like in other places.

Trump’s policies, his America First and everyone-else-can-go-to-hell attitude (America Alone), his delusion of “American Exceptionalism” (which you realize when you travel), violate everything that the travel industry stands for. Travel is humankind’s best invention to promote peace, prosperity and progress. Think about what Marco Polo brought back to Europe from his China explorations: paper money, coal as a fuel source, eyeglasses, paper, and a complex postal system, the compass and porcelain, and even more significantly, he inspired other explorers to establish trade routes. International trade which Trump is so determined to destroy, is what binds nations together and turns competitors into partners. Indeed every country that has dominated trade (the British, Dutch, Portuguese and Spanish) have become the Empire builders that dominated the world. Trade has been the source of “soft power” that helped the USA become the global superpower; nuclear weapons did not defeat Communism, trade (including international travel) did.

There are signs the travel industry is beginning to find its voice.

The U.S. Travel Association sent a letter to Congressional leadership underscoring the detrimental impact a government shutdown would have on the travel economy and traveling public. In the letter, President and CEO Geoff Freeman highlighted the dangers of government shutdown.

“A shutdown is a wholly preventable blow to America’s travel economy—costing $1 billion every week—and affecting millions of travelers and businesses while placing unnecessary strain on an already overextended federal travel workforce,” said Freeman.

During their Congressional meetings, participants will share ASTA’s fact sheet and 2025 legislative priorities, ensuring policymakers walk away with a clear understanding of the industry’s role in strengthening the broader travel and tourism economy.

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