Washington, March 31 — The United States is bracing for a significant decline in international tourism, with inbound travel projected to drop by 5.5% in 2025, according to a report by research firm Tourism Economics.
The fall comes amid foreign diplomacy shifts and trade policies following Donald Trump’s reelection.
The report warned that escalating tariff and trade wars could lead to an $18 billion (£13.8 billion) annual reduction in tourist spending next year. The downturn marks a sharp reversal from earlier forecasts, which had predicted nearly 9% growth.
Canada, the US’s largest source of international tourists, is already showing signs of pulling back. Since Trump imposed 25% tariffs on Canadian goods, border crossings from Canada have fallen by up to 45% on some days compared to last year.
Air Canada also announced it will reduce flights to US destinations, including Las Vegas, due to falling demand.
A March poll by Canadian market researcher Leger revealed that 36% of Canadians who had planned US trips had already cancelled them.
Aviation analytics firm OAG reported that bookings on Canada-US routes have plunged by over 70% year-on-year.
The US Travel Association previously warned that even a 10% drop in Canadian inbound travel could cost the US $2.1 billion (£1.6 billion) in spending and put 140,000 hospitality jobs at risk.
