Spending by international visitors to the United States is projected to decrease by $8.5 billion this year, a decline stemming from negative perceptions surrounding U.S. trade and immigration policies. This drop, approximately 5% compared to last year, is linked to a forecasted 9% decrease in international arrivals, according to a recent research note from Oxford Economics by Aran Ryan, director of industry studies at Tourism Economics.
Areas and businesses dependent on foreign tourists are poised to face substantial challenges. The World Travel & Tourism Council has warned that the U.S. economy could see an even more significant loss, estimating a staggering $12.5 billion shortfall in spending from international visitors by 2025. This decline is expected to impact communities, jobs, and businesses nationwide.
Ryan highlights the importance of perceptions in influencing travel decisions. He notes that the “posturing and policy” of the Trump administration, particularly regarding border security and tariffs with key trading partners, has fostered what he calls “sentiment-headwinds.” This has made many potential travelers hesitant. In fact, flight bookings to the U.S. from May to July were down 11% year over year as of April, further indicating a weak outlook for U.S. tourism as travelers increasingly consider alternative destinations. Notably, air bookings from Europe and Canada are lagging significantly, down more than 10% and 33%, respectively.
“Travelers make choices about where and when to travel, as well as how long to stay, and important to note is that perceptions of the U.S. matter,” Ryan explained. Geoff Freeman, president and CEO of the U.S. Travel Association, echoed this sentiment, pointing out the growing fears around travel to the U.S. He remarked, “Whether fair or not, a perception is taking hold that more people are being detained, more devices are being searched, and legal travelers are being deported back to their origin country. That creates a great deal of fear.”
Initially, Oxford Economics had anticipated a recovery in international travel, with a forecasted 9% growth in arrivals and a 16% increase in spending by 2025. However, the current trends indicate that these predictions may need reevaluation due to the ongoing negative perceptions facing the U.S. as a tourist destination.
As businesses and communities brace for these economic challenges, the need for a reassessment of travel policies and how the U.S. is perceived abroad has never been more pressing. Addressing these issues may be crucial not only for attracting international tourists but also for safeguarding the broader U.S. economy against further losses.
Original Source: https://www.cnbc.com/2025/05/28/travel-spending-us-from-overseas-tourists-to-fall-in-2025.html
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Publish Date: 2025-05-28 22:29:00
