U.S. Tourism Faces Sharpest Drop Since Pandemic, $90 Billion At Risk

(MENAFN- The Rio Times) Data from the U.S. International Trade Administration and industry analysts show foreign tourism to the United States has dropped sharply in 2025.

International air arrivals fell 10% in March compared to the previous year, while total foreign visitors dropped 12%. These figures mark the steepest decline since the pandemic's second wave in 2021.

Analysts attribute this downturn to stricter border controls, increased detentions at airports, and a rise in protectionist rhetoric. The U.S. government's recent tariffs and a tougher stance toward traditional allies have damaged the country's image abroad.

However, this shift has led to widespread calls for boycotts and a drop in travel demand. Goldman Sachs projects the tourism slump and related boycotts could cost the U.S. economy up to $90 billion in 2025, or 0.3% of GDP.

Tourism, which generated $254 billion in revenue in 2024 and accounted for 2.5% of GDP, now faces a reversal of post-pandemic recovery. The impact is broad.



Western European visitors with overnight stays fell 17% in March, with Germany, Ireland, and Norway seeing drops over 20%. Canadian air arrivals fell 13.5%, and land arrivals dropped 31.9%. Las Vegas expects a 5% fall in hotel tax revenue.

Major hotel chains and airlines report lower bookings and have cut profit forecasts. Tourism Economics revised its 2025 forecast from 9% growth to a 9.4% decline.

The U.S. retail sector could lose up to $20 billion in tourist spending. The strong dollar and higher travel costs have further discouraged visitors. The U.S. now faces a delayed tourism recovery, with ripple effects across airlines, hotels, and local economies.

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