The U.S. is projected to lose $8.5 billion in foreign visitor spending in 2025, driven by a 9% drop in international arrivals, according to Oxford Economics. Tourism Economics’ Aran Ryan attributes the decline to negative perceptions linked to Donald Trump‘s trade and immigration policies, border security measures, and fluctuating tariff announcements.
The World Travel & Tourism Council estimates losses could reach $12.5 billion, calling it a “direct blow” to local economies. The U.S. Travel Association warns that continued trends may cost the U.S. $21 billion in total travel-related revenue in 2025.
Air bookings from Canada and Europe are already lagging—down 33% and 10%, respectively. A strong U.S. dollar, despite recent softening, adds further cost pressure for international tourists.
Perceptions of increased detentions, searches, and deportations are also deterring travel. “That creates a great deal of fear,” said Geoff Freeman, president of the U.S. Travel Association.
Originally, Oxford Economics forecasted a 9% rise in international travel and a 16% increase in spending for 2025. Current sentiment trends now suggest the opposite.
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