The US tourism industry is facing significant challenges, with international visitor numbers declining due to trade wars and stricter border policies. A report by Oxford Economics' Tourism Economics predicts a potential loss of US$64 billion by 2025.
Hollywood Boulevard's empty streets reflect declining tourism
According to an article published by the Los Angeles Times on April 12, Hollywood Boulevard, usually bustling with families and spring break students at this time of year, is now sparsely populated. Open-top tourist buses sit largely empty. The Los Angeles Tourism & Convention Board emphasized that international visitors are crucial to the local tourism industry as they tend to stay longer and spend more.
Recent data from the US Department of Commerce's International Trade Administration shows that the number of overseas visitors to the US in March dropped by 11.6% compared to the same period last year. Visitors from Western Europe fell by 17.2%, while tourist numbers from Asia and South America declined by 3.4% and 10.4%, respectively.
Survey: 56% of Canadians won't vacation in the US
Canadian tourists, a significant source of visitors to the US, are also pulling back. Analysts suggest that US President Donald Trump's remarks about making Canada the "51st state" and the effects of the US-Canada tariff conflict have deterred Canadian travelers. Following Trump's announcement of tariffs on Canadian imports, then-Canadian Prime Minister Justin Trudeau encouraged citizens to adjust their vacation plans to focus on domestic destinations.
Data from the Toronto Star indicates that in February, 500,000 fewer Canadians crossed into the US by car compared to the same period last year. Some Canadian tourists have expressed that they will not return to the US until the tariff issues are resolved.
Official US government statistics show that Canadian tourists made 20.2 million visits to the US last year, making Canada the largest source of international visitors. The US Travel Association warned that if Canadian visitor numbers drop by 10%, it would result in a loss of US$2.1 billion in spending and 14,000 job cuts.
Long-term tourism challenges loom for the US
The US is preparing to host several large-scale sporting events, but industry insiders are concerned these events may fail to deliver the expected boost to tourism. Wang Yufan, a scholar from the China Institute of International Studies, highlighted that Trump's controversial rhetoric and policies have damaged the US's international reputation. For example, remarks about Greenland have increased negative perceptions of the US in Europe.
In addition, policy changes and incidents involving international tourists being detained or denied entry have prompted countries such as Canada, Germany, and Denmark to update their travel advisories, urging citizens to exercise caution when visiting the US. These developments have heightened concerns about safety risks among foreign tourists.
Wang argued that US tariff policies and stricter border controls have significantly impacted the tourism industry, potentially causing long-term damage. Increased tariffs could lead to higher costs for imported equipment and products, raising operating expenses for airlines, hotels, and restaurants. These costs may be passed on to consumers, making travel to the US more expensive and reducing its attractiveness as a destination.
If tariffs lead to rising inflation and declining consumer confidence in the US, domestic travel demand could also weaken. Fewer visitors would result in lower revenues for the tourism sector, potentially leading to reduced investment and employment. Furthermore, immigration policies may exacerbate labor shortages in the industry, affecting its scale and service quality.
Finally, as countries worldwide compete to attract international tourists post-pandemic, the US risks losing ground to alternative destinations. European tourists may opt to stay within Europe, Canadians may explore domestic travel, and Chinese tourists may favor Southeast Asia. If these competitive markets establish stable appeal, the US could face a long-term decline in international visitor numbers.
(Source: Global Times)
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