What's happened
Recent data shows a nearly 10% drop in foreign nationals arriving in the US by plane in March 2025 compared to last year. Boycotts and increased border scrutiny are contributing to a projected $90 billion loss in GDP, as travelers reconsider their plans amid rising geopolitical tensions.
What's behind the headline?
Economic Impact
- Goldman Sachs estimates a potential 0.3% loss in GDP, equating to $90 billion, due to reduced travel and boycotts.
- Canadians, the largest group of foreign tourists, have reduced flight reservations to the US by 70% through September.
Traveler Sentiment
- Increased hostility at borders and punitive tariffs have led travelers like Curtis Allen to cancel trips and reconsider spending in the US.
- European tourists are also diverting their travel plans, with a reported 25% drop in summer bookings.
Future Outlook
- The International Trade Administration had projected 77 million visitors to the US in 2025, but this outlook is now uncertain due to recent events.
- The hospitality sector, particularly in regions like Oregon, is bracing for potential fallout as international travel declines.
What the papers say
According to Bloomberg, arrivals of non-citizens to the US by plane dropped almost 10% in March, with Goldman Sachs projecting a $90 billion GDP loss due to reduced travel and boycotts. The South China Morning Post highlights that travelers are rethinking their plans amid increased border scrutiny and geopolitical tensions. The Mirror reports on individual cases, such as Curtis Allen, who canceled his US holiday due to tariffs and border policies. This sentiment is echoed by hospitality executives, noting a significant drop in bookings from both Canadian and European tourists, as reported by Accor SA's CEO, Sebastien Bazin.
How we got here
The decline in travel to the US follows a series of punitive tariffs imposed by the Trump administration and increased scrutiny at borders. This has led to a significant drop in bookings from Canadian and European tourists, who previously contributed to a record $254 billion in spending in 2024.
Go deeper
- What are the reasons behind the drop in travel?
- How are US businesses affected by this decline?
- What measures are being taken to attract tourists back?
Common question
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What is Causing the Decline in US Travel and Its Economic Impact?
The recent decline in US travel has raised concerns about its economic implications. With a nearly 10% drop in non-citizen arrivals, many are left wondering what factors are driving this trend and how it will affect the economy. Below, we explore the reasons behind this decline and its potential long-term effects.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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The Goldman Sachs Group, Inc., is an American multinational investment bank and financial services company headquartered in New York City.
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Accor S.A. is a French multinational hospitality company that owns, manages and franchises hotels, resorts and vacation properties. It is the single largest hospitality company in Europe, and the sixth largest worldwide.
Accor operates in 100 countries, w
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Canada is a country in the northern part of North America. Its ten provinces and three territories extend from the Atlantic to the Pacific and northward into the Arctic Ocean, covering 9.98 million square kilometres, making it the world's second-largest c