Foreign tourist spending in the United States has declined significantly this year, amid rising negative perceptions related to trade and immigration policies, which have led to a loss of more than $12 billion this year, according to a report by Oxford Economics.
The report indicated that losses could reach $8.5 billion in 2025, a decrease of an estimated 5% compared to last year. This decline is attributed to the decline in tourist traffic, with the number of international visitors expected to fall by 9%, according to Arne Ryan, director of industry studies at Tourism Economics.
Regions and businesses that rely on foreign tourists face significant economic risk as a result of this decline. While some estimates suggest losses of $8.5 billion, the World Travel and Tourism Council (WTTC) predicts losses of up to $12.5 billion by 2025, describing it as a "direct blow to the U.S. economy," impacting communities, jobs, and businesses across the country.
Ryan explained that "people's perceptions of the United States are important in travel decisions," adding that the Trump administration's policies, particularly those related to border security and tariffs, have created a negative climate for potential travelers.
According to the data, flight bookings to the United States between May and July fell 11% compared to the same period last year, while Europe and Canada recorded declines of 10% and 33%, respectively.
The U.S. Travel Association predicts that if this trend continues, it will result in losses of $21 billion in tourism revenue by 2025, confirming that every 1% decline in tourism spending costs the U.S. economy $1.8 billion annually.
Experts believe the strength of the US dollar is a contributing factor, along with fears of slowing global growth and escalating trade tensions.
By 2025, Oxford Economics expects international arrivals to grow by around 9% and their spending to increase by 16%.
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