The tourism industry of the United States is experiencing a sharp reversal. Media organizations like CNN and CNBC have described the situation as a self-inflicted injury. The downturn is not driven by external global conditions but rather by political rhetoric, restrictive policies, and negative international perceptions that discourage foreign visitors.
Operators in northern states near Canada have reported cancellations from Canadian tourists. CNN noted that many Canadians cited hostile political statements and unwelcoming behavior as reasons for avoiding travel. This is particularly damaging since Canada has long supplied the largest proportion of foreign visitors to bordering states in the U.S.
Tourism Economics, an international analytics company, initially projected 9 percent growth in international visitation for 2025. However, its updated forecast now estimates an 8.2 percent decline. From January through July, Canadian visitation fell 25 percent compared to 2024, with July land crossings declining 37 percent year on year.
Moreover, the World Travel and Tourism Council, a global industry body, projected in May 2025 that the American economy will lose 12.5 billion dollars in international visitor spending during 2025. The council further underscored the fact that the United States is the only country among 184 analyzed economies expected to record such a decline.
Note that the figure from Tourism Economics is smaller. However, the scale of economic losses is still substantial. Its analysis indicates that overall inbound visitor spending could fall by 4.2 percent in 2025, equating to approximately 8.3 billion dollars. CNBC further reported that broader tourism revenue losses may approach 90 billion dollars.
Industry professionals describe the situation as devastating. A Seattle tour operator told CNN that he felt angry and disappointed after multiple cancellations. Tourism-related businesses that once depended on consistent foreign demand now face weakened bookings, which in turn threatens local employment and community revenues dependent on travel-related taxation.
Political rhetoric has intensified resentment. These include statements suggesting annexation of Canadian territory, which many Canadians considered hostile. Such remarks have reinforced negative impressions abroad. International reluctance to visit the U.S. may persist unless leaders pursue measures to rebuild goodwill and demonstrate openness.
Statistical breakdowns reveal widespread declines. According to CNBC, Canadian land travel decreased by 26 percent and Canadian air arrivals by 14 percent. Western European visits fell by 16 percent, and Asian arrivals declined by as much as 30 percent in early 2025. These patterns demonstrate global hesitancy toward United States tourism.
Further data from the CNBC report showed that the U.S. travel trade deficit has grown to 50 billion dollars. This means that Americans are now spending far more on international travel than foreigners are spending within the United States, weakening what has traditionally been a surplus industry and even contributing further to the overall pervasive trade deficit.
The timing of the downturn is concerning for both the government and businesses exposed to the tourism industry. The United States is set to host the 2026 World Cup and the Los Angeles Olympics. Without urgent strategic action to restore confidence, the nation may miss vital opportunities for economic gain during these globally significant events.
FURTHER READING AND REFERENCE
- Chen, N. 31 August 2025. “The ‘Self-Inflicted Injury’ to US Tourism That’s Making Some Americans Angry and Disappointed.” CNN. Available online
- Kimmins, L. 29 April 2025. “CNBC Host Dumps on Trump’s Latest ‘Self-Inflicted’ Crash.” The Daily Beast. Available online
- Tourism Economics. 22 August 2025. “US International Inbound Travel Remains Weak for 2025.” Tourism Economics. Available online.
- Tourism Economics. 3 April 2025. “US Rolls Up Welcome Mat for International Travel.” Tourism Economics. Available online
- World Travel & Tourism Council. 14 May 2025. “U.S Economy Set to Lose $12.5BN in International Traveler Spend this Year.” World Travel & Tourism Council. Available online