Amid a well-reported decline in foreign tourist arrivals to the USA, industry stakeholders have spoken out about the “collateral damage” to the travel sector caused by President Donald Trump’s policies, while Trump himself continues to deny any negative effect.
Following concern over trade tariffs, a decline in diplomatic relations with Canada, and European travel advisories warning of tourist detentions at the US border, US tourism figures are down, both year-on-year and month-on-month.
Industry analysts and Tourism Economics have revised their growth projections for 2025 downwards from an 8.8 per cent increase to a 9.4 per cent decline, which is expected to mean a $9 billion loss in tourist spending. The US Travel Association has previously said that a 10% decline in spending could lead to 140,000 job losses.
Per @NDR_Research, U.S. foreign tourism dropped 11.6% year/year in March…sharpest decline since Global Financial Crisis pic.twitter.com/PeiXzE5ujX
— Liz Ann Sonders (@LizAnnSonders) April 28, 2025
Tourists no longer feel “safe” or “welcome”
The president and CEO of Visit California, where the multi-million generating attraction of Alcatraz has been threatened with transformation back into a prison, told POLITICO: “We definitely are collateral damage and part of the domino effect. We’re just caught in a chain reaction of broader economic and political decisions.” The state is targeting Canadians who have shunned the US over tariffs and talk of annexing them into a 51st state with a new campaign branded “California loves Canadians.”
Meanwhile, Catherine Prather, president of the National Tour Association, pointed out that California is not alone. US destinations, hospitality firms and attractions, many of which are small businesses, are “losing out on a lot of business,” she said.
President Trump says he's planning to reopen and expand Alcatraz as a prison to house violent criminals.
— Hannah Brandt (@HannahBrandt_TV) May 5, 2025
The once notorious prison has been closed for more than 60 years and is now a tourist attraction. Getting it back in working condition faces some major challenges. pic.twitter.com/VTTBFYfaUb
CBS noted on 5 May 2025 a tourism drop of “at least 14% from a year ago” and quoted the CEO of Starline Tours in Los Angeles who said the company’s tour bookings were down 29 to 30% for the first quarter. Asked why tourists were backing off, he replied that his clients were saying “They don’t feel safe, they don’t feel welcome.” This sentiment was echoed by one performing arts worker from the UK, who spoke anonymously to Travel Tomorrow. Soon due to visiting family and work in the US, she said despite having the necessary paperwork, she was fearful of “ending up in a detention centre.”
Goldman: Foreign tourism to the US has plummeted since Liberation Day (which will just make our trade balance that much worse as inbound tourism is an "export"). pic.twitter.com/32H1jRLPiJ
— Neil Sethi (@neilksethi) April 9, 2025
Accusations of “reputational damage” to US
In an exclusive interview with ABC News after the first 100 days of Trump’s second term, the President was grilled on the effect on small businesses of his approach to the economy and international relations. He responded, “Everything’s going to be just fine.” He also claimed that he was bringing inflation down. Inflation fell by 0.4% between February and March 2025.
When challenged over causing “reputational damage” to the US and driving away tourists, Trump denied his own Commerce Department’s widely-reported data showing 17% fewer Western European visitors came to the in March year-on-year, 20.2% fewer Canadians, 24% fewer Central American tourists and 26% fewer Caribbeans. He said tourism is “way up” and predicted that in six months’ time, the figures would show it.
