The number of foreign tourists in the United States fell significantly in March, amid political tensions, stricter measures on the border and boycott of American products. Data from the International Trade Administration (ITA) show that foreigners’ air arrivals fell 10% compared to March 2024, and the total visitors from outside had a 12% retraction in the same period, the highest since March 2021, when tourism still suffered the thud of the second wave of the pandemic.
The impact of the drop in tourism and boycott is expected to reach 0.3% of US Gross Domestic Product in 2025, which is equivalent to a loss of up to $ 90 billion, according to Goldman Sachs report. For bank analysts, “US tariff ads and a more aggressive posture over historical allies have harmed the global image of the country.”
International tourism, which represented $ 254 billion in revenues in 2024 and accounts for 2.5% of US GDP, is considered one of the pillars of postpandey economic recovery. However, indicators point to a reversal of this trend. Estimates released in March projected 77 million foreign visitors to the country this year, but the scenario began to change with the increase of arrests of airport arrests and the intensification of former President Donald Trump’s protectionist discourse.
The retraction is widespread. According to ITA, the number of visitors from Western Europe with at least one overnight in the US fell 17% in March. Trips from countries such as Ireland, Norway and Germany fell over 20%. The consultancy Tourism Economics, which predicted 9% growth in international arrivals in 2025, revised forecast for a 9.4% drop, citing “a more contentious context for receptive tourism”.
Canada flight reserves to the US, for example, retreated 70% by September compared to the same period of 2024, according to data from OAG Aviation. Canada is the largest tourist issuer for the US, representing 1.4 million visitors in destinations like Las Vegas last year. The city expects a 5% reduction in tax collection, according to Las Vegas Visitors and Convention Authority.
In Europe, Accor, one of the largest hotel chains in the world, reported a 25% drop in European tourist reserves for the summer. The company attributes the movement to the negative repercussion on arrests and the unfavorable geopolitical environment.
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The Delta Air Lines airline has also announced that it should not expand its operations in the second half, after reviewing the first quarter profit forecast. The company identified a drop in reserves in both leisure and corporate tourism, and mentioned significant loss of demand from Canada. Air France-Klm said it had reduced economic class rates on transatlantic routes in the face of “mild weakness”, while Virgin Atlantic warned of “modest” slowdown in searching for flights between Europe and the US.
According to Bloomberg Intelligence report, up to $ 20 billion in retail spending by international tourists are at risk. In March, tourism items such as airline tickets, hotel rates and car rentals recorded a drop in price, according to the US Consumer Price Index.
(with Bloomberg, Financial Times and The Guardian)