Tourists and students reconsider visits amid policy concerns.
International travelers are increasingly reconsidering trips to the United States, with Canada leading the decline following policy shifts under President Donald Trump. Concerns over arbitrary detentions and entry denials have prompted many to stay away, potentially resulting in a loss of up to $90 billion in tourism and product boycotts, according to estimates from a Wall Street firm.
Canadian visitors have seen the sharpest decline. In February, visits from Canada dropped 12.5%, and in March, 18% fewer Canadians traveled to the U.S. compared to the previous year, according to U.S. Customs and Border Protection data. Airbnb bookings from Canadians in the U.S. also fell 12% in March year-over-year. Airlines have adjusted schedules in response to decreased demand.
States like Florida and New York, popular among Canadian tourists, are expected to feel significant impacts. Additionally, Canadians are boycotting American products, further affecting businesses.
European visitors are also reconsidering travel plans, with Western Europe leading the decline. The U.S. saw a decrease of over 100,000 visitors from the U.K., Spain, and Germany in a single month.
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Overall, international arrivals by land, sea, and air decreased 3.3% year-over-year in March.
March is typically not a peak tourist month, so the full impact may become clearer during the summer. However, some Canadian travel, such as for hockey games, and bookings in cities like Miami have remained steady.
Goldman Sachs’ worst-case scenario projects a $90 billion loss in revenue due to combined effects of product boycotts and reduced travel.
Economic Impact of Declining Tourism
In 2024, the U.S. tourism industry generated $1.3 trillion and employed 15 million people. However, recent policy changes are affecting the country’s appeal as a travel and educational destination.
Several countries have issued travel advisories for the U.S., citing concerns over lengthy detentions and deportations. Travelers from Germany, Canada, and the U.K. have reported detentions by border officials. Canada has advised its citizens to carry burner phones due to potential electronic device searches by U.S. border agents.
European countries, including Denmark, France, and the Netherlands, have highlighted U.S. policies that may pose risks for LGBTQ+ travelers, particularly those who are transgender.
Related: A Running List of Countries Issuing U.S. Travel Advisories
China has also raised concerns for tourists and students considering American colleges. The Trump administration’s disputes with elite universities have led to frozen federal funding, prompting legal actions from institutions like Harvard. The administration has also threatened to revoke the ability of universities to host international students.
Additionally, international students across the U.S. have faced abrupt visa revocations, sometimes for minor infractions or without clear explanations. Over 1,000 students have been affected, leading to legal challenges and concerns about due process.
More than 1.1 million foreign students enrolled in American universities last academic year. Decisions made by prospective students in the coming months could significantly impact university revenues, as international students often pay higher tuition rates than domestic students.
