Recent rhetoric and policies lead to $12.5 billion drop in U.S. tourism revenue.
“I was all set to go to Los Angeles, had tickets for Coachella, but the more people I spoke to the more I reconsidered,” says Hong Kong-based Peter Chan. “All the news about people being detained at immigration and the border political situation; in the end my gut told me no. Just five days before my flight, I decided to cancel.”
As the summer of 2025 unfolds, the U.S. tourism industry confronts a significant downturn, attributed largely to President Donald Trump’s policies and rhetoric. International visitor spending is projected to decline by $12.5 billion this year, marking a 7% decrease from 2024, says the World Travel & Tourism Council. Media reports, government rhetoric, border scrutiny, and a strong U.S. dollar (making U.S. travel more expensive) have discouraged foreign tourists.
Major cities like New York and Las Vegas are already feeling the impact. The Times reports that New York City has reduced its 2025 tourism forecast by three million visitors. Las Vegas meanwhile has experienced a 7.8% drop in arrivals. Detentions and deportations of foreign visitors have further fuelled fear, and prompted potential travellers like Chan to reconsider their trips.
Canada, traditionally a significant source of U.S. tourists, has particularly seen a sharp decline. In February 2025, Canadian travel to the U.S. dropped by 40% compared to the previous year, due to strained U.S.-Canada relations, tariffs and controversial statements by President Trump.
European countries are also witnessing what has been dubbed the “Trump Slump”. The number of visitors from Germany and Spain declined by 28% and 25%, respectively YoY.
In response to the downturn, some U.S. cities are launching new campaigns to attract more international visitors. But industry experts warn that without policy changes, the U.S. may continue to lose its appeal.
While domestic American tourism remains robust, the loss of international visitors poses a challenge to the industry. As the summer progresses, stakeholders are monitoring the situation, hoping for a rebound or change of tune in the coming months.
