Despite the summer vacation season, the United States is facing neglect from overseas tourists. The anti-immigration policies of the Trump administration, strengthened regulations on foreign entrants, and retaliatory tariffs on Canadian and European products are cumulatively leading to a diversion of tourism demand to other countries.
The Wall Street Journal (WSJ) reported on 31st (local time) that, citing the U.S. Customs and Border Protection (CBP), the number of foreigners entering the U.S. through major airports has decreased by 6% compared to the same period last year. According to Canadian government statistics, flights from Canada to the U.S. decreased by 20% and overland travel by 35% in April. Travel data analysis firm Cirium indicated that summer bookings for flights from Europe to the U.S. have decreased by about 12%, with major cities like Los Angeles and Washington, D.C., showing even larger declines.
Overseas tourists have turned to travel within Europe or their own countries. Citizens from the UK, Canada, and Germany who canceled their trips to the U.S. told WSJ, "There is nothing politically we can do against the U.S., but we can choose not to spend money there." Some expressed anxiety about cellphone checks and detention cases during U.S. entry inspections.
As a result, the economic damage to the U.S. is also becoming apparent. The U.S. tourism industry accounts for about 3% of the overall GDP, but regions heavily reliant on tourism, such as border areas and beach towns, are experiencing direct impacts. In response to the decline in Canadian visitors, restaurants in Plattsburgh, New York, are putting up 'Welcome Canadians' banners and offering discounts. The resort town of Palm Springs in California has hung up a banner saying, "We love Canada" to appeal for more visitors.
According to the Tourism Economics Research Institute under the global economic analysis firm Oxford Economics, U.S. expenditures by overseas tourists are expected to decrease by about $8.5 billion this year compared to earlier estimates, which corresponds to a 5% decline. JPMorgan analyzed that while the impact on the overall U.S. economy is limited, it could lead to structural damage in certain regions.