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Trump’s Policies Trigger Tourism Slump, Costing Billions to US Economy – Image Credit Unsplash+
The US tourism industry faces an estimated $10 billion loss due to an 11.6% drop in overseas visitors in March, largely due to the Trump administration’s stringent immigration policies and escalating trade tariffs. The decrease in tourism is further expected with the hostile media coverage regarding the detainment and deportation of visitors.
According to US government data, overseas tourists visiting the US in March decreased by 11.6% compared to the previous year. This includes a significant 17.2% decline in travelers from Western Europe. The figures are projected to decline further, posing a significant threat to the tourism industry and the broader economy.
Canadians, dissatisfied with Trump’s continuous threats, are leading the decline. Major Canadian airlines have reduced flights to popular US destinations, and car visits have decreased by 32% in March.
Impact on the Tourism Industry
The tourism drop was unexpected, as the industry was predicted to recover to pre-2020 levels following the Covid-19 pandemic. Adam Sacks, president of Tourism Economics, stated that his group had originally anticipated a 9% increase in international travel to the US in 2025. However, they are now expecting a 12% drop, equating to a $10 billion loss in international travel expenses compared to last year.
Ripple Effects on Other Industries
The decline in international visitors will not only affect the hotel and tourism industry but also several other sectors, including entertainment, retail, transportation, and restaurants. Domestic trips are also projected to decline as Trump’s trade war could potentially increase prices, thereby reducing people’s disposable income. A survey by MMGY, a travel marketing company, found that 80% of Americans anticipate changes in their travel behavior due to the struggling economy.
Geographic Impact
Regardless of political affiliations, all states are likely to feel the impact. “It’ll affect blue states and red states alike. Florida is highly exposed to the Canadian and European markets. Texas is highly exposed to both European and Latin American markets. And California and New York are highly exposed to international travel,” Sacks explained.
Discover more at The Guardian.
