International visitor spending in the U.S. projected to decline by $12.5 billion due to increasing global unrest
Fear and Uncertainty: Travellers from around the globe are reassessing their plans to visit the United States as Trump's "America First" rhetoric and policies lead to international anxiety.
Tourism Sector Decline: New data shows international visitor spending in the U.S is expected to plummet by an alarming $12.5 billion, dropping to $169 billion by the end of 2025. This represents a 7-percent decrease from 2024 and a 22-percent drop compared to the peak of American tourism in 2019.
The Lone Exception: The U.S, with the world's largest travel and tourism sector, is the only country among 184 economies analyzed by WTTC and Oxford Economics that is predicted to see a decline in international visitor spending this year.
Sounding the Alarm: Julia Simpson, WTTC's President and CEO, described this finding as a "wake-up call" for the U.S government, signaling that the world's largest travel and tourism industry is veering off course.
Not Just a Canadian Issue: As Trump continues his rhetoric about making Canada the 51st state and targets the erstwhile closest ally with ever-changing tariffs, hundreds of thousands of Canadians are reconsidering vacation plans and day trips to the U.S. Additional factors exacerbating this unease include incidents like the detention of European tourists at US borders and a new policy requiring foreign nationals staying over 30 days to register.
Cold Welcome: "(The decline) is not related to the economy in general," said Frédéric Dimanche, director of the Ted Rogers School of Hospitality and Tourism Management at Toronto Metropolitan University. "It's really more a question of attitudes towards the U.S. and Trump, whether (travellers) are against the policies, against the politics, or concerned about the security issues when crossing the border."
Steep Declines for Alliance Countries: It appears that the U.S's key visitor markets are deep in the red, with UK arrivals down by 15-percent; German arrivals plummeting by 28-percent; South Korean trips dropping almost 15-percent; and other visitor populations seeing falls of 24-percent to 33-percent.
Beyond Cost and Politics: Lorraine Simpson, a travel expert, suggests that the shift towards alternative destinations is not only due to cost or politics but rather a feeling of safety, welcome, and inspiration, which Americans are finding hard to offer as of late.
Canada's Opportunity: With reduced international travel to the U.S, Canadian tourism might find itself in an advantageous position. Francine Cochrane, co-owner of Playcation Travel, a Canadian travel agency specializing in theme park vacations, observed that their U.S sales are "softer" than in the prior year, but clients are opting to travel to other destinations instead.
Long-Lasting Consequences: The consequences of reduced international travel to the U.S could be long-lasting, potentially taking until 2030 for the American tourism industry to return to pre-COVID levels. Dimanche stated it would take years for the tourism industry to rebuild tourist confidence, and that Canadian destinations may have an opportunity to attract travellers who would have previously chosen the U.S.
Rethinking the Welcome: It's crucial for destination countries to focus on making international visitors feel genuinely welcome and inspired to rebuild tourism confidence. TV travel expert Simpson concludes, "but only if we focus on making people feel truly welcome, safe, and curious again."
- The government of the United States might need to rethink its policies to ensure a positive reception for international visitors, as their attitudes and perceptions towards the U.S could significantly impact the tourism sector.
- As the economy of the U.S is experiencing a decline in international visitor spending, businesses in the travel and tourism industry might consider expanding their marketing efforts to international markets, such as Canada.
- With the US showcasing worrying incidents like the detention of European tourists and demanding registration for visitors staying over 30 days, news outlets around the world are highlighting these issues, potentially further deterring foreign nationals from visiting.
- The media, both in Canada and globally, should emphasize updates on the U.S's travel and tourism policies to keep concerned travellers informed, ultimately helping them make confident decisions about their travel plans.
- In a time of increased travel restrictions and political uncertainties, Canadian cities like Toronto could reposition themselves as attractive lifestyle destinations to draw in more international visitors, helping the tourism sector in Canada grow exponentially.
