'Tourism industry roiled by Trump’s new world order': 'We definitely are collateral damage'

The President has downplayed worries regarding the decrease in trips to the United States.

'Tourism industry roiled by Trump’s new world order': 'We definitely are collateral damage'
American tourism officials had high hopes for a record year in 2025 from international visitors. However, the unexpected impact of Donald Trump's presidency has cast a shadow over those expectations.

Trump's ongoing antagonism towards key allies, particularly Canada and much of Europe, has unsettled the American tourism sector. Reports of tourist detentions at U.S. borders are raising concerns that potential travelers may choose to stay away. Consequently, international arrivals — which had shown a steady rise since the pandemic and were anticipated by some to surpass 2019 levels in the coming year — are now seeing a decline.

Tourism advocates at both city and state levels, along with industry associations, have expressed that this significant downturn in international arrivals poses a serious threat to businesses of all sizes that depend on a thriving tourism sector, potentially resulting in billion-dollar losses.

Caroline Beteta, president and CEO of Visit California, conveyed this sentiment during an industry town hall call in late April: “We weren’t in the crosshairs... But we definitely are collateral damage and part of the domino effect. We’re just caught in a chain reaction of broader economic and political decisions.”

The shift in the industry’s prospects has been striking. Last December, the research organization Tourism Economics forecasted an 8.8 percent increase in international visitors for 2025, alongside a 16 percent boost in visitor spending. By early April, that outlook had changed dramatically, with predictions of a 9.4 percent drop in international visitor arrivals, particularly a steep 20.2 percent decline among Canadian travelers. This shift could lead to a staggering $9 billion decrease in visitor spending, according to the group.

Aran Ryan, director of industry studies at Tourism Economics, attributed much of this downturn to Trump's policies: “Vastly all of it is a direct result of Trump’s actions at the White House."

Lisa Simon, executive director of the International Inbound Travel Association, added, "I’m not one to point fingers, but we definitely have seen this decline and heard these reactions since January, since these policies have changed.”

Data from the Commerce Department’s International Trade Administration revealed that in March, the U.S. saw a 17 percent decline in visitors from Western Europe compared to the same month the previous year. Additionally, the number of travelers arriving from Central America dropped by 24 percent, while the Caribbean saw a 26 percent fall.

Industry representatives are voicing concerns about the broader implications for their members. Catherine Prather, president of the National Tour Association, remarked, "U.S. destinations, our restaurants, our hotels, our attractions — many of these are small businesses — are losing out on a lot of business that they would have received from these Canadian travelers."

Despite the negative trends, Trump has dismissed concerns about the decline in international tourism, expressing confidence in an ABC News interview marking his administration's first 100 days. “Tourism’s doing very well,” he stated. “We’re doing very well. Wait till you see the real numbers come out in about, in six months from now, wait till you see the numbers."

The White House has pointed to major upcoming international events hosting in the U.S. as a positive sign. White House deputy press secretary Anna Kelly commented, “President Trump’s agenda to make America wealthy, safe, and beautiful again benefits Americans and international visitors alike.”

Lena Ross, chair of the board of IITA and chief operating officer at America 4 You, observed a significant decline in fall bookings for her business, with numbers down 30 to 50 percent. She explained that many potential travelers are deterred by the risks associated with cross-border travel, noting concerns about potential detentions and required documentation: “Am I going to be detained at the border? What are the documents I need?”

The apprehension surrounding travel to the U.S. has been amplified by reports of European tourists being detained and deported with minimal explanations in recent months. This concern prompted a Canadian university professors association to advise academics to visit the U.S. “only if essential and necessary." Moreover, countries like Denmark, Finland, and Germany have updated their travel advisories for transgender individuals visiting the U.S. following Trump's executive order to exclude “nonbinary” and “other” options from federal documents.

The rise of nationalist sentiments also contributes to the reluctance among international travelers, particularly as Trump has implemented tariffs and criticized neighboring countries.

When asked about the effect of this growing discontent on tourism, Trump downplayed the issue: “There’s a little nationalism there I guess, perhaps... It’s not a big deal.”

Members from three prominent travel associations — including Prather's NTA — reported already feeling the effects. A survey indicated that over half of the respondents had lost business, bookings, or visitations from Canadian and other international groups, and 61 percent of hoteliers and direct marketing organizations noted canceled room nights.

Prather expressed hope for a recovery, stating, “I hope things calm down and this can change. But right now, it's not only [that] it's looking unfortunate for this year, but also into next year.”

Some state officials and tourism representatives, particularly from blue states that have already confronted Trump on various issues, are attempting to dissociate themselves from the administration’s impact on tourism. In April, California Gov. Gavin Newsom released a video encouraging Canadians to continue their travels to the state, saying, “Sure, you-know-who is trying to stir things up back in D.C., but don’t let that ruin your beach plans. California is the ultimate playground — 2,000 miles from Washington and a world away in mindset."

On May 6, California's tourism nonprofit is set to unveil a new diplomatic initiative called "California Loves Canada."

Anna Muller for TROIB News

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