Nobody wants to visit US, hence it may lose $20B
What's the story
The US is witnessing a major economic blow in the form of a sharp decline in foreign tourism. As per the International Trade Association, there's been an over 11% drop in non-citizen arrivals by air since March 2024. The decline has raised alarms among economists who stress economic advantages brought by these visitors. The US economy is expected to lose $20 billion in retail spending as a result of decline in foreign tourists and a growing boycott of American products.
Travel impact
European nations alter travel advisories
Data shows Canadians returning from US visits by air fell 31.9% year-on-year in March, with air arrivals down 13.5%. The US Travel Association (USTA) warns that even a 10% drop in Canadian tourism might lead to a $2.1 billion loss and put 140,000 hospitality jobs at risk. Meanwhile, several European countries such as the UK, Germany, Denmark, and Finland have updated travel advisories for citizens planning US trips.
European response
Significant decrease in arrivals from Western Europe
The biggest declines in US arrivals have come from Western Europe, which saw a year-over-year decline of 17%. Luxembourg residents topped the list with a shocking 44% decline. Other countries like Denmark, Austria, and Iceland also witnessed a major decline in travel to the US. The American Bus Association warned isolationist policies and nationalist rhetoric could affect inbound travel.
Visitor deterrents
Travel restrictions and geopolitical tensions deter potential visitors
Recent incidents of travelers being detained for weeks, sudden visa cancelations, etc., have painted a negative image of the US. The Donald Trump administration's controversial remarks about annexing Canada, Greenland, and the Panama Canal have sparked outrage and led to a boycott of American products in many nations.