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In March 2025, the US International Trade Administration (ITA) reported that European visitors to the United States decreased by 17% compared to the same month the previous year. This marked the steepest decline in international travel to the US since 2021, during the pandemic. Travel from overseas dropped by 12%, signifying a deeper recession in tourism.

Political Climate and Border Control Rhetoric Increased the Deficit

The large deficit in tourism inflow is directly correlated with perceptions of US border and immigration treatment, especially regarding minorities, as well as the political climate during the presidency of Donald Trump. Travelers from Germany, Ireland, and Norway experienced over a 20% reduction, with fears about heightened detainment and punitive immigration policies being the most cited reasons.

Travel Incorporated Projects Financial Losses

Tourism’s reduced inflow is leading to financial losses across all sectors of travel:

A reduction in trans-Atlantic traffic was reported by Virgin Atlantic and Air France-KLM.  
Omio, which provides travel booking services, reported an increase of 16% in trip cancellations to the US.
Accor, a french hospitality company, reported a 25% decrease in European summer bookings to the US.  
British Airways’ parent company IAG alongside Delta Air Lines also reported increased cautionary tendencies as Delta withdrew their predictive guidance.

Barclays experts highlighted weakened demand as a prospective loss in profitability for transatlantic air travel.

Concerns from Individual Travelers

Accounts from concerned would-be travelers illustrate the impact on people;

A UK-based transgender author, Gloria Sync, stated that she decided to cancel her San Francisco trip after learning about heightened scrutiny at the borders.

Retired Parisian Paul Harrington decided against traveling to Washington D.C. because of his personal issues with Trump’s foreign trade and foreign aid policies.

Canada and Other Markets Also Affected

The phenomenon isn’t limited to Europe. Delta President Glen Hauenstein reported a noticeable shift in bookings from Canadian travelers, which is concerning for a country that usually tops international tourism lists.

In 2023, Canadians made up 25% of international travelers to Las Vegas, a prime tourism destination.

US Tourism Sector Economic Fallout

The clear 2.5% contribution of this sector to the US economy demonstrates a risk of further downturn. Enhanced political criticism and tariffs have forced Tourism Economics to adjust their 2025 forecast from a 9% surge in international arrivals to a 9.4% decline.

"Such lapses are unforced errors,” Adam Sacks, the president of Tourism Economics, commented. “These have a great impact on international perception of the US.”  

International tourists’ spending in the US surpassed $253 billion in 2024 alone. Analysts, however, caution that, if this trend continues, it could undermine a vital income source for the US economy.


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