US tourism will face a potential loss of $64 billion in 2025, driven by decline in international and domestic travel, reduced visitor expenditures, tighter immigration regulations, and unfriendly trade practices under President Trump’s administration that contribute to this downturn. Additionally, increased global tensions and a stronger US currency are deterring tourists from considering the US as a favourable destination.
Impact on economy – the future of US tourism is threatened due to the economic policies under the administration of US president Donald Trump, as per a report.
According to a recent Tourism Economics report released as part of Oxford Economics, the US tourism industry could lose up to $64 billion this year because of less international and domestic travel, reported TOI.
US Tourism Faces Loss of Billions- foreign travel to the US is projected to decline 5.1% in 2025 compared to 2024. A far cry from an earlier forecast indicating an 8.8% rise, as per TOI. This would lead to a drastic drop in visitor expenditure, which is projected to drop by 10.9%, totalling about $18 billion loss in 2025 alone, reported TOI.
As per the tourism economic report, other policy actions, such as deep reduction to the US agency for international development (USAID), civilian service personnel reduction, and contentions foreign policy initiatives, such as those involving Ukraine and Gaza, also have been bittering foreign opinion of the US. All of these, alongside the polarizing administration rhetoric, are deterring international visitors and groups from holding events in the nation, according to TOI.
The effect on international tourism
The world tourism forum institute also cautioned that heightened tensions worldwide, paired with tougher immigration policies and a more implication for US tourism trends, as per TOI. A survey done by YouGov in December, comprising 16 European and Asian countries revealed that 35% of respondents said they were less likely to visit the US under Trump, and only 22% were more likely to visit, according to the report.