Kaia Matheny, co-owner of Adrift Restaurant in Anacortes, Washington, is feeling the impact of dwindling tourist numbers this summer. Historically a haven for travelers heading to the San Juan Islands, Anacortes faces a harsh reality as trade tensions and shifting immigration policies deter international visitors, particularly those from Canada, which has traditionally sent the most tourists to the U.S. Matheny reports a noticeable drop in sales, reflecting a broader trend; air and land arrivals from Canada plummeted 14% and 32%, respectively, in March compared to the previous year, according to data from Tourism Economics.
The decline in international tourist traffic, expected to continue into the peak summer season, raises concerns for local businesses. “Tourism won’t be what it usually is,” Matheny lamented. “We’ll batten down the hatches and make the best of it.”
Tourism remains a vital export for the U.S., with foreign visitors spending over $180 billion in 2024, outpacing even agricultural exports, as noted by Geoff Freeman, president and CEO of the U.S. Travel Association. Yet, March saw a 12% decrease in international visits compared to 2024, with significant downturns noted from regions like Western Europe, Asia, and South America. Summer air bookings from overseas are down 10% year-over-year, and Canadian bookings are even worse, dropping over 30%.
The economic repercussions could be severe. Adam Sacks, president of Tourism Economics, estimates that the U.S. economy could lose $10 billion this year due to reduced international tourism, with potential losses swelling to $21 billion in 2025 if current trends persist. “It’s alarming,” Freeman remarked, highlighting how many businesses depend on international visitors.
Multiple factors contribute to this downturn. Trade tensions have escalated under the Trump administration, with tariffs raising concerns about a potential trade war. Recent travel advisories issued by China and several European nations due to issues like heightened border security have further amplified fears among potential visitors.
Canadians, feeling particularly affected, have begun to explore alternative destinations, with a 50% drop in search activity for U.S. travel reported in March and April, according to short-term rental platform Beyond. Instead, interest in Mexico surged by 35%. “We saw a nearly immediate drop in Canadian search activity after the tariff news broke,” said Julie Brinkman, CEO of Beyond.
Moreover, growing fears surrounding U.S. immigration policies are compounding the situation. “Whether fair or not, there’s a perception that legal travelers are facing increased scrutiny and potential deportation, creating a great deal of fear,” Freeman noted.
As businesses struggle, the share of profitable tourism companies has fallen sharply, with only 32% reporting profitability in April 2025, a drop from 41% and 43% in the previous two years. This drop has forced many businesses, including Adrift Restaurant, to reduce purchasing, directly impacting local suppliers and the broader economy.
Matheny noted that her restaurant has experienced a 4% decline in monthly sales compared to last year, a situation that affects not just her business but also the local farms and fisheries that supply her kitchen. “It’s a community impact,” she underscored, emphasizing the interconnectedness of tourism and local economies.
As Anacortes braces for what may be a challenging summer, the broader implications are clear: reduced international tourism could ripple through local economies, presenting a tough year ahead for many reliant on the travel sector.
Original Source: https://www.cnbc.com/2025/05/10/foreign-tourist-boycott-us-business-impact.html
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Publish Date: 2025-05-12 23:14:00
