Four Key Reasons Travellers Are Skipping The US — Costing The Tourism Industry $12 Billion

The United States is experiencing a notable drop in international tourism, with major destinations such as New York, Las Vegas, and Los Angeles already seeing fewer visitors. Travellers from Canada, Europe, and Asia are increasingly opting for alternative destinations, avoiding the US due to a mix of political, economic, and social concerns.

Tourism Industry Feels the Financial Fallout

According to the World Travel & Tourism Council (WTTC), which represents the private sector of the global travel and tourism industry, recent Economic Impact Research reveals that the United States is projected to lose approximately £8.8 million ($12 billion) in spending from international visitors this year.

Now, as reported by the New York Post, the following factors are a key part of the multi-billion loss expected in the tourism sector.

1. Mass Deportation Efforts

The United States' stepped-up deportation campaigns are deterring international travellers. Reports of large-scale immigration raids, expanded detention centres, and increased deportation orders have heightened global concern about the treatment of foreign nationals, even those with valid visas.

Under the Trump-era policies being revived or expanded, such efforts have become symbolic of a broader anti-immigration stance. For many potential tourists, especially from Latin America, the Middle East, and parts of Asia, the threat of mistaken detainment or hostile scrutiny at borders is a significant deterrent.

This atmosphere of fear and exclusion has made the US appear less welcoming, undermining its appeal as a safe and open destination.

2. Ongoing Trade Tensions and Tariffs

Rising trade tensions between the US and its international partners are further contributing to the decline in tourism. Tariffs imposed on Canadian and European goods have not only triggered economic retaliation but have also led to widespread public backlash.

Many foreign tourists now view travel to the US as an endorsement of unfriendly foreign policy. This sentiment has directly impacted inbound travel numbers. In March 2025, the number of Canadian visitors dropped by 31.9% in land crossings and a 13.5% decrease in air arrivals. On the other hand, European markets such as Germany and the United Kingdom also recorded double-digit declines.

The negative effects are now being felt across the hospitality, retail, and airline sectors.

3. Anti-LGBTQ Legislation

Several US states have passed or proposed laws seen as discriminatory towards LGBTQ individuals, including restrictions on gender-affirming healthcare, bans on drag performances, and the rollback of protections for transgender people. These policies are not only impacting residents but also discouraging LGBTQ tourists and allies from visiting.

International travel advisories, including those from Canada and various EU member states, have warned citizens about risks faced by LGBTQ individuals in parts of the US. As inclusivity becomes a key travel criterion for many, destinations perceived as regressive or unsafe are falling out of favour.

These laws contribute to a growing perception that the US is becoming less tolerant and more politically divisive, especially among younger travellers and those from progressive countries.

4. Travel Ban on 12 Countries

The reinstatement and expansion of US travel bans targeting predominantly Muslim and African nations have sparked international outrage. As of 2025, travel restrictions now affect citizens from 12 countries, with new visa barriers and increased scrutiny at US embassies.

While US officials cite national security, critics argue the bans are discriminatory and politically motivated. The affected countries include Nigeria, Iran, Libya, and Syria, among others. The bans have disrupted families, business travel, and academic exchanges, further damaging the US' global image.

Many travellers from neighbouring regions now avoid transiting through the US entirely, choosing other hubs with more open policies.

Can the US Win Back the World's Travellers?

A combination of political rhetoric, economic pressure, and global instability is reshaping the global tourism landscape. For the United States, the message is clear. Unless major changes are made to improve policy and public perception, the country risks becoming a far less popular destination.