US Tourism Faces Billions in Losses as International Travelers Rethink Vacation Plans Amidst Geopolitical Tensions

The U.S. tourism industry is bracing for a potential loss of billions of dollars in 2025 as international travelers reconsider their vacation plans due to increased border hostility, geopolitical frictions, and global economic uncertainty. Data from the International Trade Administration reveals a nearly 10% drop in non-citizen arrivals by plane in March compared to the previous year. Goldman Sachs estimates that reduced travel and boycotts could shave off 0.3% of the U.S. GDP, amounting to almost $90 billion. This shift comes after a resurgence in international travel following the pandemic. However, recent reports of harsh detentions at U.S. airports and rising tensions with key allies are deterring potential visitors. For example, Canadian flight reservations to the U.S. are down 70% through September, while European bookings at Accor SA hotels have decreased by 25%. Travel Oregon CEO Todd Davidson remains committed to attracting foreign visitors, but acknowledges the need to potentially shift focus towards domestic tourism as the situation evolves. While the U.S. welcomed a record $254 billion in spending from international tourists last year, the current climate suggests a significant downturn in the coming months. Early indicators include falling airfares, hotel rates, and car rental costs, signaling a decrease in demand from foreign travelers.