U.S. tourism faces sharp downturn amid political headwinds

With international visits plunging and domestic travel slowing, the U.S. faces a $10 billion tourism blow - and no state will be spared

The number of overseas visitors to the US fell by 11.6% in March compared to the previous year, with a sharp 17.2% drop from Western Europe. Since much of the negative publicity about detentions and deportations began mid-March, tourism is expected to decline even further, potentially devastating the industry.

Key takeaways

• Canadian travel to the US has sharply declined, with major airlines cutting flights and car visits down 32%.
• 2025 was expected to be a recovery year for US tourism after COVID-19, but the outlook has reversed dramatically.
• Tourism Economics now projects a 12% drop in international travel, with an estimated $10 billion loss in spending.
• Traveler sentiment is highly sensitive to political tensions and negative perceptions, especially after high-profile detentions.
• Tourism hubs like New York City and Los Angeles are seeing significant drops in ticket sales and hotel bookings.
• Trump downplays the decline, but industry leaders warn the impacts will ripple across many sectors, not just tourism.
• Domestic travel is also expected to decline due to the trade war's economic effects, reducing disposable income.
• All states - regardless of political leaning - will suffer, with places like Florida, Texas, California, and New York being especially vulnerable.

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