In 2025, the United States is experiencing a massive collapse in tourism, with losses already reaching $12.5 billion, and the year is far from over. Instead of a long-awaited post-pandemic recovery, the country is heading into a deeper decline — and experts warn that Donald Trump’s return to the White House could make things even worse.

📉 USA Is the Only Country Losing Money on Tourism in 2025

According to the World Travel & Tourism Council (WTTC), international visitor spending is expected to fall below $169 billion by December. That’s:

🔹 7% lower than in 2024

🔹 and a devastating 22% drop from 2019, the last peak year for travel.

Out of 184 countries analyzed by Oxford Economics, the U.S. is the only one losing money on tourism this year. WTTC President Julia Simpson was blunt:

“While other nations roll out the welcome mat, the U.S. seems to be hanging a ‘Closed’ sign on the door.”

And tourism is no small piece of the pie — it brings in:

🔹 $2.6 trillion annually

🔹 9% of total U.S. GDP

🔹 20 million jobs

🔹 and $585 billion in taxes, or 7% of all federal revenue.

🌍 Strong Dollar and Hardline Immigration Policies Push Visitors Away

The issues didn’t start this year. Under the Biden administration, travel restrictions remained long after other countries reopened, slowing recovery.

The next blow? A strong U.S. dollar made visiting the U.S. prohibitively expensive for tourists from Japan, Europe, and beyond.

But now, with Donald Trump back, things are deteriorating further.

Julia Simpson warned of a dangerous “shift in sentiment” that's pushing foreign travelers away:

“Lawmakers must stop confusing tourism with illegal immigration. A smart system can handle both without turning a country into an island nobody wants to visit.”

📊 Sharp Drop in Arrivals from Europe, Asia, and Canada

March 2025 data confirms the trend:

🔻 –15% from the UK

🔻 –28% from Germany

🔻 –15% from South Korea

🔻 –24–33% from Spain, Ireland, and the Dominican Republic

These countries used to represent some of the highest-spending visitor groups.

🏙️ Cities and Border Regions Take the Biggest Hit

New York City and upstate New York are among the hardest-hit:

📉 NYC’s tourism board cut its projections by 400,000 fewer visitors, estimating a $4 billion revenue loss.

📉 While domestic tourists might increase by 400,000, foreign visitors are expected to drop by 800,000 — a bigger deal, since international tourists stay longer and spend more.

📉 In northern New York, near the Canadian border, 66% of tourism businesses report a sharp decline in bookings from Canadians.

Governor Kathy Hochul blamed Trump’s anti-Canada rhetoric and tariff threats.

📆 Full Recovery Could Take Until 2030 – If Nothing Else Goes Wrong

Industry leaders warn that even under ideal conditions, tourism may not return to pre-COVID levels until 2030.

Meanwhile, Congress is debating a potential price hike for the ESTA visa waiver program, from the current $21 to as much as $40.

Simpson criticized the idea:

“You want more tourists, not fewer. Hiking visa costs will only push people away.”

🌐 The World Modernizes, America Falls Behind

As countries like India, China, and the Gulf states roll out digital visas and streamlined entry systems, the U.S. lags behind with outdated processes.

Simpson’s final warning was clear:

“It’s the Americans who are falling behind. And they’re losing.”

#MacroEconomics , #GlobalMarkets , #TradeWars , #USPolitics , #TradingCommunity

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