Decline in International Visitors Poses Significant Financial Threat to U.S.

There is now data to back up growing concerns about international tourists avoiding the United States amid the divisive policies of the Trump Administration.

A new report from the International Trade Association reveals that arrivals of non-citizens to the United States by plane have declined by more than 11 percent since March 2024.

Additionally, Canadians returning from visits to the United States by plane have plummeted 31.9 percent year-over-year as of March. Arrivals of Canadian visitors are down steeply as well, by 12.5 percent.

The precipitous drop in visitation has raised serious concern among economists who underscore the critical financial benefits of tourism in the United States. International travelers spent $254 billion in the US last year, according to ITA.

A separate report published by Bloomberg quotes projections from Goldman Sachs Group Inc., which estimates that "in a worst-case scenario" reduced travel to the U.S. and associated boycotts could cut about 0.3% of the country's gross domestic product. That would translate to almost $90 billion.

The U.S. Travel Association (USTA) meanwhile, has said that even a 10 percent decline in visitors from just Canada could result in a $2.1 billion loss and risk the loss of 140,000 jobs in the U.S. hospitality industry.

According to the ITA, visits from just 40 international travelers support one travel industry job in the United States.

But it’s not just visitation from Canada that is being impacted by the new U.S. presidential administration’s controversial policies and rhetoric. A growing number of European countries have issued travel advisories regarding visiting the United States. 

This comes on the heels of numerous reports of visitors from other countries being detained at U.S. borders or denied entry altogether.

Travel advisories issued by longtime U.S. allies warn travelers that even those with updated visas and valid documents no longer guarantee entry.

Meanwhile, the most significant declines in visitation to the U.S. are being witnessed from Western European nations. There’s been a 17 percent drop year-over-year in arrivals by plane from that region.

It seems residents of the small nation of Luxembourg are leading the pack when it comes to avoiding the United States. There’s been a 44 percent decline year-over-year in visitation from that country. But travelers from countries like Denmark, Austria and Iceland are also avoiding the United States in significant numbers, per the ITA data.

The Financial Express has reported that travelers are avoiding the U.S. as part of a growing boycott of President Donald Trump's polices.

The American Bus Association has issued a statement of its own regarding these developments.

“Perhaps more acutely, isolationist policy, restrictive immigration, and nationalist rhetoric all have the potential to negatively impact inbound travel through direct travel restrictions and shifts in sentiment. This would mirror the effects observed during the first Trump administration, which saw declines in Mexico, China, and the Middle East. The current situation warrants broader concern, including Europe.”

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