For foreign travelers, visiting America doesn’t seem as appealing as it used to be.
Five years after the COVID-19 pandemic brought global travel to a standstill, the U.S. travel industry is once again on the decline. According to the International Trade Administration, foreign travel dropped 10% in March compared to the same time last year.
Why are foreign travelers skipping the states? Trade wars, tariffs, and mass deportations have something to do with it.
According to the report, travel decline came mostly from Canada, Mexico, the U.K., Asia, and South America. And if it continues, the U.S. is expected to take a multi-billion dollar hit. Per the U.S. Travel Association, the U.S. loses $1.8 billion in export revenue for every 1% drop in international visitors’ spending.
International travelers spent $254 billion in the U.S. last year, according to Yahoo! Finance. The U.S. stands to lose around $21 billion in travel-related revenue, according to U.S. Travel Association.
California, which depends heavily on tourism, saw a 15% drop in foreign tourism in March. Other tourist hot spots like Las Vegas have started laying off workers as tourism slows. Florida was the top destination for foreign visitors in March 2024 despite an overall dip in international tourism.
More than 4.5 million foreign travelers visited the U.S. in March 2024, nearly 97% of pre-pandemic levels. The Easter holiday — which took place in April this year instead of March — also impacted travel numbers.
Meanwhile, Americans are trying to get out of the country. Trips overseas rose to 6.5 million in March, slightly up from last year and up more than 21% since 2019.
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