US to Lose Heavily on Tourism Front: Experts

(3 Minutes Read)

Goldman Sachs Group estimates that in a worst-case scenario, the hit this year from reduced travel and boycotts could total 0.3% of gross domestic product, which would amount to almost USD 90 billion.

The US economy is set to lose billions of dollars in revenue in 2025 from a pullback in foreign tourism and boycotts of American products, adding to a growing list of headwinds keeping recession risk elevated.

Arrivals of non-citizens to the US by plane dropped almost 10% in March from a year earlier, according to data published by the International Trade Administration. Goldman Sachs Group estimates that in a worst-case scenario, the hit this year from reduced travel and boycotts could total 0.3% of gross domestic product, which would amount to almost USD 90 billion.

Foreign tourism has been a tailwind for the US in recent years as the cessation of pandemic-era restrictions sparked a resurgence of international travel. But many potential visitors are now rethinking their vacation plans amid increased hostility at the border, rising geopolitical frictions, and global economic uncertainty.

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One of them is Curtis Allen, a Canadian videographer who cancelled an upcoming US vacation after President Donald Trump imposed punitive tariffs on his home country and suggested it should become the 51st US state. Allen and his partner have been on multiple camping trips to Oregon over the years, but this year, they will be travelling around British Columbia instead.