Recent reports of foreign tourists being detained and deported upon entering the U.S. have raised alarms about the country’s tourism economy. Tourism Economics downgraded its forecast for 2025, projecting a 5.1% decrease in foreign travel, down from an initial 8.8% increase. This downturn is attributed to adverse effects from Trump administration policies, leading to an 11% decline in foreign tourist spending and an economic loss of $18.8 billion. Analysts suggest that travelers' aversion to the U.S. due to political climate and visa processes may further exacerbate these declines.
"The issue for holiday travelers is that they have a choice of when and where to travel," Adam Sacks, president of Tourism Economics, wrote in an email to Fast Company. "This ultimate discretion means that antipathy towards a country's leadership can have appreciable effects. This is on top of the negative economic consequences of tariffs."
According to Neri Karra Sillaman, an entrepreneur expert at Oxford University, foreign travelers' fears of higher visa scrutiny and extended processing times under the Trump administration could be a major deterrent-ultimately leading to a decline across the tourism and hospitality industries.
Tourism Economics has shifted its forecast for foreign travel to the U.S. from an expected 8.8% increase in 2025 to a 5.1% decrease, citing polarized policies and rhetoric of the current administration.
The report also warns of a potential spending decline by foreign tourists of 11%, equating to an economic loss of approximately $18.8 billion for the U.S. tourism sector.
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