Trump's policies lead to massive decline in US tourism!

Trump's policies lead to massive decline in US tourism!

President Donald Trump aims to strengthen the US economy but faces significant challenges in the tourism sector. According to a recent report by Northern Bavaria The market research company Oxford Economics predicts huge losses for the US tourism sector. International arrivals are expected to decline by $8.5 billion in 2025, driven by a wide range of factors.

Another alarming assessment comes from the World Travel & Tourism Council, which estimates that international tourism revenue will fall by $12.5 billion in 2025. This would reduce total revenue to about $169 billion, down about seven percent from last year.

Worrying turnaround

The development could be attributed in particular to the political atmosphere in the USA. Between May and July 2025, 10.8 percent fewer flights were booked to the USA than in the previous year. Canadian tourists are particularly affected, as they plan to reduce travel by 20.2 percent.

A key explanation for these negative predictions is Trump's policy announcements and the way his administration is perceived internationally. Trump himself referred to the day of the tariff levy as “liberation day” and raised the image that Canada was essentially the 51st state of the USA. Such statements have led to Germany's Foreign Office tightening its travel advice.

A complex interplay of factors

In addition to the political announcements and the associated travel restrictions, the public mood has changed negatively. Reports of difficulties entering the country and potential bans have increased in the media, which could further strain tourism. Oxford Economics highlights that Trump's first term in office was marked by policies that strained international relations. These include trade tariffs and a travel ban for selected countries, which caused travel to the USA to grow marginally but caused global market share to shrink.

The challenges for international travel are enormous. The risks from political decisions and public sentiment could continue to have a negative impact. A moderate recovery in GDP may be on the horizon in the short term, but in the long term there are fears of a negative impact from tariffs and restrictions on immigration that will limit the availability of labor.