The United States’ $1.7 trillion tourism industry is being hit hard as foreign visitation continues to plummet. In 2024, the nation received 72 million international arrivals, a clear decline from the 78 million that arrived in 2019. This recent downturn is troubling for a number of reasons. International travel is one of the most important drivers of the U.S. economy, and it is the largest services export.
The forecast for international inbound travel is worsening by the day, a confluence of factors leading to a bleak future. That’s a combined $9 billion plus in visitor spending — overseas visitors spend an average of more than $4,000 each per visit. That’s eight times the amount that domestic tourists typically spend! Those stats show a deeply disturbing pattern in the tourism business. The share of tourism firms reporting profitability fell back to 32% in April 2025, compared to 41% in April 2024 and 43% in April 2023. Profits at accommodation businesses have taken a notably severe overall hit. Now, just 36% are managing to remain profitable, a decrease from 44% and 45% in 2022 and 2021 respectively.
Nationally, small and mid-sized business bottom lines have already worsened significantly in the wake of the avalanche of travel disruptions. For example, Canadian air summer bookings to the United States dropped by over 30%. In addition, inbound travel to the U.S. from abroad was down 12% YOY as of March 2025. Unfortunately, things just got a lot more confusing. Arrivals from Canada have tanked, with air arrivals down 14% and land arrivals down 32%.
Travel data reveals an alarming trend: searches conducted by Canadians for travel to the U.S. dropped by 50% from the same period in 2024. This decline is projected to cost the U.S. economy an estimated $10 billion this year relative to last year.
Several geopolitical factors contribute to this downturn. In fact, only two weeks later, China warned against travel for its citizens to the U.S. The warning reflects rising alarm over fraying economic ties and new threats to domestic security. European countries have increasingly been releasing travel advisories for the U.S. They point out increased border security and possible complications with travel documents.
When President Donald Trump first announced this latest round of tariffs, this act has contributed to deepening worries of a proto–global trade war and increasing import duties to their highest point since the early 1900s. This economic climate has made potential travelers more anxious or unwilling to spend money, causing a steep decline in foreign visits.
Even more crucially, U.S. Travel’s president and CEO Geoff Freeman said travelers today face greater hostility at borders. This increased awareness of surveillance has raised alarm among passengers.
“Whether fair or not, a perception is taking hold that more people are being detained, more devices [are] being searched and legal travelers [are] being deported back to their origin country,” – Geoff Freeman
Freeman underscored that this fear could keep potential tourists from coming to the U.S. This would increase the already-isolated tourism industry’s soaring pandemic-era crisis.
Many industry professionals are still hopeful.
TABLE OF CONTENTS Lorraine Sileo, senior vice president for research for the U.S.
“I don’t think it’s all doom and gloom for the U.S. travel industry.”
On the ground, businesses are already adapting to the new reality of low ridership. To compensate for these lost international travelers, Canadian Prime Minister Justin Trudeau has urged his citizens to make more domestic trips instead. He suggested,
“Now is also the time to choose Canada.”
Trudeau encouraged Canadians to rethink their summer travel plans. He encouraged them to take advantage of the attractions along the way, such as national parks and historical landmarks.
With businesses expecting that the drop in foreign tourism will be permanent, many are bracing for hard days to come. Kaia Matheny, a travel industry professional, commented,
“We’ll batten down the hatches and make the best of it.”
Yet one Redditor recently announced their intention to avoid U.S.-based cruises for at least two years. Rather, they’re looking forward to trips to Europe and Canada.
“Proud to say we’ve cancelled 3 US based cruises over the next 2 years and instead will be vacationing in Europe and Canada,” – Reddit commenter
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