Foreign tourism in the US collapses and can generate losses of up to $ 90 billion to the country’s economy

Geopolitical boycott and tensions affect travel sector and press GDP projections

Retraction in international travel to the United States and boycott to US products can cause a loss of up to 0.3% in the country’s Gross Domestic Product (GDP) by 2025, according to the Goldman Sachs Inc.

The value represents approximately US $ 90 billion and adds to a set of factors that maintain the risk of economic slowdown.

According to data released Monday by the International Trade Administration Administration, the arrival of foreign passengers by air to the US retreated almost 10% in March in the annual comparison.

The decline occurs after years when international tourism had been contributing positively to the economy, especially with the end of the restrictions imposed by the pandemic.

Analysts attribute part of the retreat to increased diplomatic tensions, tariff policies and the perception of hardening in the country’s entry procedures.

In March, ITA had projected 77 million international visitors to the US in 2025, a number near the record recorded in 2019. The forecast included the possibility of a new peak in 2026. However, the latest indicators have led to projections.

Reports on travelers from travelers from countries such as France and Germany at US airports negatively impact the country’s image among tourists.

In Canada, the main origin of international tourists in the US, recent measures adopted by President Donald Trump, including Canadian products and statements on territorial attachment, have influenced travel decisions.

Curtis Allen, Canadian cameraman, said he had canceled his vacation in the United States after Trump’s statements and also mentioned the suspension of a streaming service signature and refusal to purchase US products. “We will spend the same money elsewhere,” he said.

Bloomberg Intelligence estimates that about $ 20 billion in retail spending on international tourists in the US is at risk. Last year, foreign travelers left a total of $ 254 billion in the country, according to ITA.

The Bureau of Labor Statistics (Department of Labor Statistics) reported that airlines, hotel rates and car rentals fell in March, partly reflecting the lowest international demand.

The price reduction was observed especially in the Northeast region, where the fall in hosting tariffs reached 11%, according to Omar Sharif, president of the consultancy Inflation Insights.

“Considering what we know about the fall in travel to Canada, this can be a little worrying for the region,” said Sharif.

Rainbow Air Helicopter Tours, a company located in Niagara Falls, has invested US $ 25 million in new structure and equipment in preparation for high season. The company’s sales and marketing manager, Patrick Keyes, said the moment is expectant. “We are waiting to see the results,” he said.

According to the OAG Aviation Worldwide report, Canada flight reserves to the United States fell 70% until September compared to the same period last year.

The Accor Hotel Hotel network pointed to a 25% drop in European tourist reserves for summer 2025. The company’s CEO, Sébastien Bazin, related the reduction to episodes of border arrests, which generate fear and direct tourists to other destinations.

Goldman Sachs economists, Joseph Briggs and Megan Peters, said that “US tariff ads and a more aggressive stance on historic allies have impaired global opinions about the US.”

For them, the retraction in tourism represents another factor that can lead to the country’s economic growth to be below expectations by 2025.

Travel Oregon, Oregon State Tourism Commission, said it continues to promote the destination abroad, even in the face of the adverse scenario.

The entity’s executive director, Todd Davidson, said the team participated in an adventure tourism conference in Vancouver and should receive, in the coming weeks, sales representatives from countries such as United Kingdom, India and Brazil.

Despite international efforts, Davidson indicated that the entity already considers the possibility of realizing the focus to the domestic audience. “Oregon is not and will not divert the eyes of these international markets. We will be here when our international visitors feel they are ready to return,” he said.

The impact of tourism on the economic performance of the United States is monitored by different institutions. In addition to the direct contribution to consumption and the service sector, the flow of visitors has influence on the supply, local employment and regional investments.

The worsening diplomatic tensions and the consequences of ongoing trade policies add new elements of risk to the economic conjuncture designed for the next quarters.