The U.S. tourism industry, historically a significant contributor to the economy, generating approximately $1.3 trillion in revenue and creating around 15 million jobs, is facing challenges. Recent trade policies and negative remarks from U.S. officials, along with stricter border and immigration controls, are impacting the sector.
According to a report, the number of foreign tourists visiting the U.S. in March decreased by nearly 12% compared to the previous year, marking the largest drop since the COVID-19 pandemic. Notably, visitors from Central America decreased by 24% and from Western Europe by 17%, with Germany and Spain seeing declines of 28% and 25%, respectively.
Canada, a major source of international visitors to the U.S., contributes approximately 20 million visitors annually. However, following U.S. tariffs on Canadian goods, there has been a significant decline in Canadian visitors, with a 32% drop in those driving to the U.S. and a 13.5% decrease in air travel returns to Canada.
Due to these declines, the U.S. Travel Association predicts a potential $72 billion loss in tourism revenue by 2025, affecting hotels, airlines, and restaurants. Additionally, a worst-case scenario could see a 0.3% reduction in U.S. GDP, equivalent to $90 billion.
