The Trump Administration Could Cost The US Tourism Sector
Travel forecasting company Tourism Economics has said that the Trump administration’s rollout of tariffs is likely to cause a drop in international travel to the US. The company is expecting a 9.4% drop in the number of people arriving in the US, nearly twice the 5% the company predicted at the end of February. What was expected to be a strong year for international travel to the US, with Tourism Economics predicting a 9% rise in visits from 2024, is now clouded with uncertainty. President Trump's radical agenda, along with tense exchanges with US allies, especially his stance on Greenland, has unsettled international travelers. "With each policy development, each rhetorical missive, we’re just seeing unforced error after unforced error in the administration; It has a direct impact on international travel to the US," explained Tourism Economics President Adam Sacks. A significant 20% drop in travelers from Canada is expected due to Trump's proposed tariffs and threats toward the neighboring country. According to the US Travel Association trade group, a mere 10% decrease in travel from Canada could result in 2 million fewer visits and $2.1 billion in lost spending. Canada’s former Prime Minister, Justin Trudeau, has told Canadians to “choose Canada,” urging them to vacation within Canada rather than travel to the US. A decrease in travel to the US from Canada is already noticeable, as Air Canada revealed that bookings to the US between April and September were down 10% compared to last year.
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At the start of 2025, Tourism Economics predicted a boom for international travel to the U.S., with visits up 9% from 2024. That's changed.
