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Declining International Tourism to the U.S. Threatens Multi-Billion-Dollar Economic Losses

New data shows a sharp drop in foreign visitors, driven by Trump administration policies, with Canadian and European tourism hit hardest.

Conservative Leader Pierre Poilievre's chartered Air Canada plane arrives at Kelowna International Airport, in Kelowna, B.C., on Friday, April 4, 2025.
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Overview

  • International arrivals to the U.S. have fallen by over 11% since March 2024, with significant declines from Canada, Europe, and Australia.
  • Canadian tourism has nosedived, with road trips down 32% and air travel dropping 13.5% year-over-year in March 2025, risking $6 billion in economic losses.
  • European nations, including the UK and Germany, have updated travel advisories, warning that valid visas no longer guarantee entry into the U.S.
  • Australian travel to the U.S. has declined by 10% as tourists express uncertainty and seek alternative destinations in Asia and Europe.
  • Economists project the U.S. economy could lose up to $20 billion in retail spending, with 140,000 hospitality jobs at risk due to the tourism downturn.