Sharp decline in European visitors to the U.S.

Travelers from the UK, Germany, and France are canceling their trips to the U.S. at increased rates, resulting in a 25% drop in hotel bookings for European visitors this summer

The number of European travelers visiting the United States has sharply declined, with political and economic tensions, along with concerns over a hostile border under President Donald Trump, affecting one of the world’s most profitable air routes. This decline in international tourism is impacting the U.S. economy and the travel industry, with fears of lasting reputation damage.

Key takeaways

• Sharp decline in European visitors: The number of Western European visitors to the U.S. dropped by 17% in March, with some countries like Ireland, Norway, and Germany seeing a decline of over 20%.
• Impact on U.S. economy: The U.S. tourism industry, contributing 2.5% to GDP, is facing threats due to reduced demand, particularly in transatlantic flights.
• Travel discomfort due to border policy: Reports of detentions at the U.S. border and Trump's aggressive policies have created a "bad buzz," making potential travelers hesitant to visit.
• Airlines and hotel groups warn of declining demand: Several major airlines, such as Virgin Atlantic and Air France-KLM, reported signs of slowing demand for transatlantic flights. Hotel bookings for European visitors have also dropped by 25% for the summer.
• Higher cancellation rates: Travelers from the UK, Germany, and France are canceling trips to the U.S. at higher rates, with cancellations for U.S. bookings in Q1 rising by 16%.
• U.S. border policies impacting Canadian visitors: Travel from Canadians, a key tourist demographic for the U.S., has also declined, further exacerbating concerns for destinations like Las Vegas.
• Potential long-term economic effects: The decline in international visitors is predicted to result in a significant drop in U.S. tourism spending, which accounted for over $253 billion in 2024.
• Public perception and sentiment: The rhetoric and policies of the Trump administration, including tariffs and a dismantling of foreign aid, are leading to negative sentiment toward the U.S., causing further hesitation in travel.

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