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Expenditures from foreign visitors are poised this year to drop by $8.5 billion this year, negative perceptions related to trade and immigration policies to show foreign tourists elsewhere, according to research notes released by Oxford Economics.
The decline in spending is about 5% lower than last year, resulting in less pedestrian traffic. Alan Ryan, director of industry research at Tourism Economics, part of Oxford Economics, is expected to see an approximately 9% drop in international arrivals to the US last week.
Companies and regions that rely on foreign tourists for business transactions can be particularly hit hard.
Other estimates suggest that potential economic losses could be even greater.
The World Travel & Tourism Council said this month it hopes the US economy will lose its “amazing” $12.5 billion in 2025 spending from international visitors.
“American Perception” for Travel
The Trump administration’s “stance and policy” tied to issues such as border security and longtime trading partner tariffs has created a “feeling-head of emotions” to become a traveler, Ryan writes.
Flight bookings to the US between May and July fell 11% year-on-year in April, giving a “weak” outlook due to travelers looking elsewhere, Ryan writes. Europe and Canada are notable delays. Airline bookings have been increasing at a pace of over 10% and over 33% respectively.
“Travelers make choices: where to travel, when to book, how long they stay, and, importantly, the US perception,” added Ryan.
“There is a perception that more people are being detained, and more devices are being detained, whether fair or not. [are] Searched and legal travelers [are] “Geoff Freeman, president and CEO of the American Travel Association, spoke to CNBC earlier this month.
Heading into 2025, Oxford Economics had expected to increase its growth and spending by around 9% of international arrivals by 16%.
