US set to lose $16 billion in foreign tourism in 2025: Industry group

PARIS - The US is on track to lose some US$12.5 billion (S$16.2 billion) in revenue from foreign tourists in 2025, a tourism industry group said on May 15, as the Trump administration leads a crackdown on immigrants.

The study by the World Travel and Tourism Council (WTTC) and Oxford Economics found that the US was the only country set to see a drop in spending from foreign tourists in 2025.

The drop to US$181 billion in spending by foreign tourists will put it 22.5 per cent from the peak set a decade ago.

The WTTC, made up of leading travel firms, said this “represents a direct blow to the US economy overall, impacting communities, jobs, and businesses from coast to coast”.

WTTC president Julia Simpson said that US government support was needed to ensure tourism growth.

“While other nations are rolling out the welcome mat, the US government is putting up the ‘closed’ sign,” she said in a statement.

With President Donald Trump leading a crackdown on illegal immigration, making politically charged comments about other nations, and slapping tariffs on foreign goods, there have been numerous efforts by consumers in other countries to boycott US products and calls to skip travel to the US.

Visitors ‘fearful’

Ms Simpson told The New York Times that some foreign travellers were afraid to travel to the US.

“There are also concerns over visas – whether they’ve got the right visa or might accidentally get arrested, which has made people quite fearful,” she was quoted as saying.

The report highlighted US Department of Commerce data showing sharp drops in March 2020 arrivals from key countries, including nearly 15 per cent drops from Britain and South Korea.

The drops were over 20 per cent from Germany, Ireland and Spain.

The WTTC report also noted other data showing a 20 per cent drop in early summer bookings from Canada.

“This is more than a dip. It’s a wake-up call,” said the WTTC.

“The US is welcoming fewer visitors from its neighbours and countries farther afield, which is a clear indicator that the global appeal of the US is slipping.”

Meanwhile, the report found that US citizens are travelling abroad more, further hurting the US travel sector.

In 2024, the tourism sector contributed $2.6 trillion to the US economy and supported more than 20 million jobs.

It also contributed more than $585 billion in tax revenues – or almost 7 per cent of the total. AFP