US President Donald Trump’s policies are reportedly discouraging tourists from visiting the country, raising concerns about potential negative impacts on the economy. The administration’s sweeping changes, including stringent deportation and immigration regulations, have contributed to this downturn.
Data from the International Trade Administration indicates a significant 10% drop in tourist arrivals to the US since March of last year. Analysts at Goldman Sachs predict that this decline could reduce the nation’s gross domestic product by 0.3%, translating to an estimated loss of nearly $90 billion.
Impact on US Tourism
International travelers previously contributed a record $254 billion to the US economy last year, with a positive outlook anticipated based on ITA projections. However, those forecasts were made before the implementation of aggressive detentions at airports.
According to Bloomberg Intelligence, the retail spending of international tourists in the US could decline by $20 billion in the near future.
Early signs of this downturn are already evident. A monthly consumer price report from the Bureau of Labor Statistics, released on April 10, shows that airfares, hotel prices, and car rental rates all dropped in March. Economists from Goldman Sachs and HSBC Holdings Plc attribute this decline to reduced demand, particularly from international visitors.
Shifts in Consumer Behavior
Canadian videographer Curtis Allen shared his decision to cancel an upcoming trip to the US, citing Trump’s tariffs and comments suggesting Canada should become America’s 51st state. “We’re not just staying home. We’re going to spend the same money somewhere else,” he remarked. Allen has also canceled his Netflix subscription and is making a concerted effort to avoid American products while shopping.
Notably, the most significant decline in tourism has been observed among Canadian travelers, who represent the largest group of foreign visitors to the US. Recent data from Statistics Canada reveals a staggering 32% decrease in the number of Canadians driving to the US in March compared to the same month last year.
