Tourists are turning their backs on the US and it could cost the economy billions

The US is facing a tourism problem which could potentially drain billions from its economy

Potential visitors are apparently rethinking vacations to the US amid increased geopolitical frictions and uncertainty surrounding Trump's tariffs and the global economy, all within the first 100 days of his second term.

Tourists don’t just spend money on plane tickets and hotels; they also spend a significant amount once they’re there–almost $20 billion in retail spending, according to a Bloomberg Intelligence analysis.

A pushback in foreign tourism, as well as boycotts of American products, have naturally raised concerns. Arrivals of non-citizens to the US by plane have decreased almost 10 per cent in March from a year earlier, according to data shared by the International Trade Administration. Goldman Sachs also warned that reduced travel and boycotts could cost the US economy almost $90 billion.

According to a monthly report on consumer prices from the Bureau of Labor Statistics, airfares, hotel rates, and car rental costs dropped in March. The report was published on April 10.

And the number of UK residents flying to the US was down 14.3 per cent in March, compared with the same month last year, according to figures from the US National Travel and Tourism Office.

Experts weigh in on whether the US tourism industry will rebound Photo by Hanson Lu on Unsplash

Will the US tourism slump last forever?

Despite the concerning figures, there's a growing sense of optimism that holidaymakers will soon flock back to the US. “Looking ahead, we anticipate a strong recovery as the year progresses,” James Austin, travel expert and head of organisational development at travel management company Access Bookings told Indy100.

“The upcoming 2026 World Cup presents a valuable opportunity to rejuvenate travel, and locations featured in TV and film, especially those off the beaten track, are seeing a surge in interest from both tourists and corporate travellers.”

Similarly, HotelPlanner.com CEO and co-founder Tim Hentschel said despite changes in interest amid “stricter border policies under Trump’s administration, including tighter visa vetting procedures”, they don’t expect it to be an ongoing issue.

“We have been monitoring the number of bookings made and the year-on-year percentage changes to gauge how the European market is reacting to the noise around travelling to the US,” he said, regarding the platform.

“It’s true that numbers are down, particularly amongst those from western Europe. For example, bookings made via our platform for hotels in NY state are down 50 per cent in the Netherlands for March 2025 when compared to March 2024, with France down by 80 per cent. Whilst these figures might point towards a significant downturn in appetite for US travel, it’s not something we necessarily consider to be long term.

“With the US, and in particular President Trump, dominating the media headlines in Europe due to the situation with tariffs and diplomatic relations, it’s inevitable to see a negative trend for travel bookings.”

Hentschel said the same impact has not been seen yet on their platform for those from the UK.

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