One American business sector that's about to take a massive hit this summer is foreign tourism. With a little source help from AI, I pulled together some stats and numbers that illustrate the MASSIVE scale of the impact to American business owners. We track business, legal and economic issues that affect our clients' businesses and we have many clients that will be affected by this across the country, ranging from hotel and restaurant owners to people that own a single Airbnb property.

While you can't do anything to increase tourism as an individual business owner, there are things you can and should do and consider NOW to maximize your share of whatever tourism business there is to be done, attract new customers, improve your profile and visibility, increase your efficiency and protect yourself from any possible financial and legal challenges ahead that may lie ahead. This means upping your game by offering the best service, experience and products available. This also means it's time to spend time money on MARKETING and visibility, and that reputation management is more important than event before.

 

 

Who Will Be Affected? 

All hospitality tourism and travel related businesses and the nearly 20 million Americans they employ, including, but certainly not limited to, the following will be affected.

-       Airlines

-       Hotels

-       AirBnB and short term Rentals

-       Restaurants

-       Retail

-       Transport and Tour Operators

-       Car Rentals including Turo operators

·       Travel & Hospitality:

Reduced international travel directly impacts businesses in the travel and hospitality industry. Fewer foreign tourists mean fewer bookings for hotels, restaurants, and airlines, leading to lower revenue and potentially job losses. 

·       Retail:

American retailers, particularly those selling goods that are popular with international travelers, are also affected. International tourists often purchase luxury goods, souvenirs, and other items while visiting the U.S., so a decline in tourism leads to a decline in retail sales. 

·       Local Businesses:

Beyond large chains, smaller local businesses in tourist areas, such as those in New York, Miami, San Francisco, and Las Vegas, also feel the impact. Restaurants, attractions, and other service providers rely on both local and international customers, so reduced international demand can hurt these businesses as well. 

·       Events & Conferences:

The business and professional events industry, heavily reliant on international attendees, is also impacted by travel boycotts. 

Additionally, businesses relying on international retail spending, such as American brands like Nike, Levi's, Ralph Lauren, and Abercrombie & Fitch, also face potential impact. 

Why Are Foreign Tourists Staying Away?

Foreign tourists are avoiding the US due to a combination of factors, including the hostility of the current administration and the actions of U.S. Customs and concerns about safety, political climates, and economic factors. Hard to blame them when their governments are issuing travel warnings against coming here because tourists are getting detained for days, visiting military wives are being subjected to body cavity searches and then deported on aggressive, capricious technicalities.

Several foreign governments have issued travel advisories for the U.S., cautioning their citizens to exercise caution or reconsider travel due to a combination of factors, including stricter immigration policies, heightened security concerns, and concerns about potential discrimination against certain groups. Some countries, like Canada and several European nations, have issued advisories citing concerns about border enforcement and the possibility of detentions, even for minor visa violations. Additionally, some countries have warned about the U.S. government's requirement for individuals to select "male" or "female" on ESTA and visa applications, which excludes transgender and non-binary individuals. 

Here's a more detailed breakdown:

• Political and Ideological Concerns: Some tourists are hesitant to travel to the U.S. due to the political climate and the perceived unwelcoming attitudes towards certain groups, including the LGBTQ+ community. [1, 1, 6, 6] 
• Trade Wars and Tariffs: The ongoing trade wars, particularly with China, have led to higher prices for goods and services in some foreign countries, making travel to the U.S. less affordable. [4, 4, 6, 6, 9] 
• Border Issues and Detentions: Concerns about border detentions, especially for those with visas or who have been flagged as potential security risks, have also discouraged some travelers. [3, 3, 10, 10] 
• Safety Concerns: Some foreign tourists express concerns about safety, particularly in certain areas of the U.S., and the potential for encounters with law enforcement. [1, 1, 11, 11] 
• Strong U.S. Dollar: The strong value of the U.S. dollar compared to other currencies makes travel to the U.S. more expensive for many foreign visitors, potentially deterring them from visiting. [4, 4, 12, 13] 
• Global Economic Uncertainty: Overall global economic uncertainty, coupled with other factors, has also contributed to a decrease in international travel, including to the U.S. [3, 3] 

 

Key concerns driving these advisories:

Increased border enforcement:

Reports of increased detainments and stricter enforcement have prompted concerns about the potential for tourists to face difficulties at the border, even for minor, and often questionable violations. 

Immigration policies:

Shifting immigration policies and stricter border controls have led some countries to advise their citizens to be cautious. 

Concerns about discrimination:

The U.S. government's requirement for individuals to select "male" or "female" on ESTA and visa applications has sparked concern about potential discrimination against transgender and non-binary tourists. 

Safety and security concerns:

Some countries have issued advisories due to concerns about terrorism, civil unrest, and high crime rates. 

 

How Big a Deal Is This to American Business Owners?

The U.S. economy is set to lose $12.5 billion in international traveler spend this year because people are afraid to come here.

Foreign tourism is projected to bring in just under $169 billion in revenue to the US in 2025, a decrease from $181 billion in 2024. This revenue is a significant contributor to the US economy, with international visitors spending an average of over $4,000 per visit. 

Here's a more detailed breakdown:

• 2024 Spending: International visitors spent an estimated $181 billion in the US in 2024. 
• 2025 Projection: This spending is projected to fall to just under $169 billion in 2025. 
• Key Contributors: Many international visitors spend an average of over $4,000 per visit, contributing a total of $155 billion in travel spending annually. 
• Overall Economic Impact: The U.S. travel and tourism market was valued at $2.8 trillion in 2023, with projections estimating growth to $1.35 trillion in 2025 and $1.46 trillion by 2028. 

In 2023 the U.S. was one of the world's most powerful travel and tourism markets that supports up to 18 million jobs across the country. 

Here's a more detailed breakdown:

·       GDP Contribution:

The travel and tourism sector contributed $2.36 trillion to the U.S. GDP in 2023, according to Statista. 

·       Job Creation:

The sector supports 18 million jobs in the U.S., according to the World Travel & Tourism Council. 

·       Global Impact:

The U.S. travel and tourism industry is the world's most powerful, with a GDP contribution nearly double that of its nearest rival, China, according to the World Travel & Tourism Council. 

·       Record Spending:

International travelers spent a record $254 billion in the U.S. in 2023, according to Yahoo Finance. 

 

Even World Cup 2026 is a Target

The Trump administration says foreign soccer fans attending next year's FIFA World Cup are welcome to visit for a good time, but not a long time. “Everyone is welcome to come and see this incredible event,” Vice President JD Vance said. “But when the time is up, they'll have to go home. Otherwise, they'll have to talk to Secretary Noem,” he added, referring to Kristi Noem, the U.S. homeland security secretary, best known for posing for pictures in a Venezuelan prison. Read more: https://nyti.ms/434jN6R

 

MORE READING:

'A hostile state': Why some travelers are avoiding the US https://www.bbc.com/travel/article/20250328-the-people-boycotting-travel-to-the-us

Why foreign tourists are reconsidering travel to the US

https://www.scrippsnews.com/us-news/why-foreign-tourists-are-reconsidering-travel-to-the-us#google_vignette

US Economy to Lose Billions as Foreign Tourists Stay Away

https://finance.yahoo.com/news/us-economy-set-lose-billions-100000258.html

Why Canada, UK, Germany, France, Ireland, Netherlands, China, Japan, and More Are Issuing New Travel Warnings and Urging Caution on Trips to US

https://www.travelandtourworld.com/news/article/why-canada-uk-germany-france-ireland-netherlands-china-japan-and-more-are-issuing-new-travel-warnings-and-urging-caution-on-trips-to-us/

SOURCES: 

[1] https://www.scrippsnews.com/us-news/why-foreign-tourists-are-reconsidering-travel-to-the-us

[2] https://www.abc15.com/us-news/why-foreign-tourists-are-reconsidering-travel-to-the-us

[3] https://finance.yahoo.com/news/us-economy-set-lose-billions-100000258.html

[4] https://www.cnbc.com/2025/04/23/international-tourists-domestic-american-travel-abroad.html

[5] https://www.bbc.com/travel/article/20250328-the-people-boycotting-travel-to-the-us

[6] https://theconversation.com/tourists-are-cancelling-trips-to-the-us-heres-how-this-could-affect-its-economy-252858

[7] https://www.thestar.com/life/travel/foreign-visitors-rethink-travel-to-u-s/article_aa1d2b75-2b5f-41b8-beb9-182028d2b2bb.html

[8] https://www.americancentury.com/insights/broad-impact-of-a-strong-us-dollar/

[9] https://www.travelandtourworld.com/news/article/mexico-canada-italy-uk-france-lithuania-finland-and-more-shift-travel-landscapes-as-us-tourism-suffers-deepest-fall-since-pandemic-triggered-by-trumps-policies-new-report-you-need-to/

[10] https://www.reddit.com/r/Economics/comments/1kbagdt/trump_promises_summer_tourism_rebound_as_visits/

[11] https://www.gov.uk/foreign-travel-advice/usa/safety-and-security

[12] https://www.americancentury.com/insights/broad-impact-of-a-strong-us-dollar/

[13] https://www.travelandtourworld.com/news/article/what-we-expect-happened-as-china-new-travel-warning-to-us-starts-global-trade-war-may-dampen-tourism-sector-slowdown-in-airline-cruise-and-hospitality-industry-whats-next/

Arizona Tourism, Foreign Tourism, U.S. Economy, U.S. Politics, Business Owners, Hospitality Business, Retail, Restaurants Business, Hotel Owners, Summer 2025,