According to the World Travel and Tourism Council, the United States stands to lose $12.5 billion due to declining tourism.
Tourism is a big US export: Foreign visitors spent more than $180 billion here in 2024, more than all agricultural exports combined, said Geoff Freeman, president and CEO of the US Travel Association.
However, international visits to the US fell 12% year-over-year in March, according to Oxford Economics.
And nationally, small and mid-sized business profits have already “deteriorated sharply” amid the travel slowdown, said Aaron Terrazas, an economist at Gusto, a payroll and benefits provider.
The share of “tourism” companies that are profitable fell to 32% in April 2025, down from 41% and 43% in April 2024 and 2023, respectively, according to Gusto. The category includes tour operators, condo or time-share agencies and ticket or reservation agencies.
The share of profitable “accommodation” businesses fell to 36%, down from 44% and 45%, Gusto found. The category includes small hotels and motels, guesthouses, cottages and cabins, and RV parks and campgrounds.
Canadian travellers, traditionally the US’s most reliable market, dropped by more than 900,000 or 17% in March, as growing numbers of Canadians opt to boycott US holidays. Air and land arrivals from Canadians fell 14% and 32%, respectively, in March compared to the same time in 2024, according to Tourism Economics. Perhaps threatening to make Canada the 51st state wasn't the brilliant diplomatic strategy someone thought it was.
It’s not just Canada: Visits from Western Europe, Asia and South America – historically the US′ highest-value travel markets – are also down by double-digit percentages, according to the US Travel Association.
Data suggests the weakness will persist through the summer. Air bookings for overseas summer travel to the US are pacing about 10% behind the same time last year, according to Tourism Economics, which is affiliated with Oxford Economics. (These were bookings made as of March).
The US, long marketed as the land of opportunity and adventure, is increasingly perceived as unwelcoming. Tighter border scrutiny, aggressive immigration enforcement, and a sharp shift in political tone have made travellers wary.
Reports of tourists being detained, shackled and deported at US airports over minor alleged visa issues or misunderstandings have circulated widely. In some cases, visitors have had their phones and electronic devices searched without clear cause. For many travellers, that is a risk not worth taking.
Governments have started to respond. Several countries, including New Zealand, Germany, France, Denmark and Finland, have updated their official travel advice for the US, urging citizens to exercise caution when visiting. The message filtering through international media is clear: the US is not as easy, safe or welcoming as it once seemed.
For sure, the tourism pullback appears to be “more a US issue right now” rather than a broad global weakness in travel, since other regions are seeing positive tourism growth, said Lorraine Sileo, senior analyst and founder of Phocuswright Research, a market research firm.
Domestic tourism isn’t poised to pick up the slack – the market was slowing heading into 2025 and the “revenge travel” trend, which had propelled Americans to travel due to pent-up demand after Covid-19 lockdowns, has largely been played out, she said.
“I don’t think it’s all doom and gloom for the US travel industry”, Sileo said. “But it’ll be a tough year”.
Sivasangari Subramaniam came up short in her bid to reach the semi-finals of the World Championships on Thursday. The world No. 9 lost 11-3, 8-11, 11-4, 11-5 to American world No. 4 Olivia Weaver in 41 minutes.
It was the 25-year-old Malaysian's sixth defeat in seven meetings with the 34-year-old Weaver. Many had tipped Sivasangari to overcome Weaver and become the first Malaysian to reach the semi-finals since Nicol David won the title in 2014 – but it was not to be.
I have this advice for Sivasangari: If you know yourself, you need not fear your competition.
Pearly Tan-Thinaah Muralitharan continued their sizzling run by dismantling China's Chen Qing Chen-Wang Ting Ge today to storm into the semi-finals of the Thailand Masters.
The world No. 4 needed just 34 minutes to wrap up a commanding 21-14, 21-11 win, finally breaking their quarter-final jinx in Bangkok after two previous failed attempts.