US tourism sector to lose $64 billion due to Trump administration’s trade wars: Report – The Times of India

Recent policy decisions by US President Donald Trump are raising concerns about the future of American tourism, with fears that price increases and a stronger dollar could deter foreign visitors.
A report by Tourism Economics, a division of Oxford Economics, estimates that the US tourism sector could lose approximately $64 billion in 2025 due to reduced international and domestic travel.
The report forecasts a 5.1 per cent drop in foreign arrivals to the United States in 2025 compared to the previous year, a sharp reversal from earlier projections of an 8.8 per cent increase, according to the report published late late month. Visitor expenditure is also expected to decline by 10.9 per cent “which totals to an estimated $18B loss in 2025 alone,” according to the report.
Since the report was published “The situation has deteriorated further”, said Tourism Economics president Adam Sacks, citing growing negative sentiment toward the US He attributed this to the Trump administration’s recent actions, including tariffs on Canada, Mexico, China, and potential measures against the European Union, as well as stricter immigration policies.
Other significant policy changes include cuts to the US Agency for International Development, civil service redundancies, and controversial strategies regarding the Ukraine and Gaza conflicts. These moves, combined with polarizing rhetoric, are expected to discourage international travel and deter organizations from hosting events in the US, according to Tthe ourism Economics.
The World Tourism Forum Institute also warned that strict immigration rules, a strong dollar, and rising global tensions could have long-term impacts on US tourism patterns.
A December YouGov survey of 16 European and Asian nations found that 35 percent of respondents were less inclined to visit the United States under Trump’s leadership, while 22 percent expressed increased interest.
Tourist reactions
Despite the projected decline, some tourists remain undeterred. In Times Square, AFP interviewed visitors from France, Uzbekistan, and Argentina, who said Trump’s policies had not changed their travel plans.
Marianela Lopez and Ailen Hadjikovakis, both 33 and from Argentina, chose to enter the U.S. using their European passports. “We were a bit scared about the situation, but we didn’t change our plans,” Lopez said.
The Lagardere family from France also maintained their original travel plans. Laurent Lagardere, 54, remarked, “The Americans elected this president. It’s democracy. If they’re not happy, they’ll change it in four years.”
The National Travel and Tourism Office projected 77.7 million foreign visitors in 2024, reflecting a 17 percent annual increase. However, some key markets are already showing signs of decline.
Canadian visitors to decline
Western European visitors, who accounted for 37 per cent of 2024 arrivals, along with Canadians and Mexicans, are reportedly the most likely to seek alternative destinations, as reported by AFP.
Statistics Canada reported a 23 per cent year-on-year decrease in US-returning Canadian travelers in February, marking two consecutive months of decline. NYC Tourism president Julie Coker noted that New York City, which welcomed 12.9 million international visitors in 2024, is experiencing increased Canadian cancellations and reduced online searches.
Meanwhile, British and German authorities have issued heightened travel document warnings due to the risk of arrest when visiting the US.
The impact is also being felt by airlines. United Airlines and its competitors report a notable reduction in both Canadian-US travel and domestic demand.
Industry professionals worry these trends could affect major upcoming sporting events, including the 2025 Ryder Cup, the 2026 FIFA World Cup, and the 2026 Los Angeles Olympics.