International Travel to the U.S. Declines, costing Billions and Raising Economic Concerns
WASHINGTON, D.C. – A downturn in international tourism is poised to considerably impact the U.S. economy, with forecasts predicting a 6% drop in international visits by year’s end, according to U.S. Travel.This decline translates to a projected $31 billion loss in spending by international visitors this year, impacting businesses reliant on tourism revenue like hotels and restaurants.
The U.S. had been recovering from pandemic-era lows, jumping from 20 million international travelers in 2020 to over 72 million in 2023. Though,this progress is now being hampered by a combination of factors,according to Aran Ryan,director of industry studies at Tourism Economics.
Speaking on “Marketplace Morning Report,” Ryan attributed the dip to “a mix of rhetoric and policy that’s contributed to negative sentiment effects.” He explained that some travelers are reconsidering the U.S. as a destination, citing concerns about border crossings and potential complications.
“I think for Canadians there’s probably a good mix that are showing national pride and saying, ‘No, we don’t want to be a 51st state,'” Ryan said. “I think there’s probably other travelers globally that feel that, you know, their sensibilities have been challenged, and maybe it gives them a little pause and they choose another destination.”
The financial impact is substantial. ryan illustrated the scale of the loss by stating its equivalent to the annual revenue of all 2,400 Hampton by Hilton hotels in the U.S. over a three-year period.
As international travelers seek alternatives, Western Europe, the Middle East, and emerging European destinations are seeing increased tourism.
Despite the current decline, Ryan remains optimistic about the potential for recovery.”I think they certainly can be won back,” he stated,emphasizing the importance of presenting the U.S. as “a welcoming, exciting, expansive destination.”