Tourists are cancelling trips to the US - here are three reasons why

International travel spending in the United States is projected to fall by $12.5 billion, or seven per cent, in 2025, according to the World Travel and Tourism Council (WTTC).

WTTC CEO Julia Simpson said the unpopular policies from the administration of President Donald Trump, fear of being stopped at the border and an unfavourable exchange rate had pushed international tourists towards alternative destinations.

"Of 184 countries, the U.S. is the only one that's seeing an absolute decline in international visitor spending," Simpson said.

"The U.S. is definitely losing its crown in this area."

The U.S. is the largest travel and tourism economy globally, she said. However, international visitor spending in the country is projected to fall under $169 billion this year, down from $181 billion in 2024 and 22 per cent below its previous peak in 2019.

A strong dollar, which makes U.S. vacations more expensive, caused a decline in foreign travel spending in the country in 2024, Simpson said, but now politics and worries about crossing the border were also weighing on U.S. visitation figures.

In March, Germany updated its U.S. travel advisory to emphasise that a visa or entry waiver does not guarantee entry after several Germans were detained at the border.

The Trump administration requires all foreigners 14 or older to register and submit fingerprints if they stay beyond 30 days. This includes Canadians, who previously could visit for up to six months without a visa.

"The rest of the world are putting up open signs and getting people to come and see their country," Simpson said. "The U.S. at the minute has firmly got a 'we're not open for business, closed' sign, which is a great shame."

While 90 per cent of U.S. travel and tourism spending comes from domestic tourists, Canadian travellers spend three times more on U.S. vacations than Americans, according to the U.S. Travel Association. Overseas visitors spend seven to eight times more than U.S. travellers.

Travel from Canada and Mexico, the largest source of inbound visitors to the U.S., is down about 20 per cent year-over-year, the organisation said. Visits from British, German and South Korean travellers are also trending lower.

Overall, overseas travel to the U.S. fell about 12 per cent year-over-year in March but rose 8 per cent in April, according to data from the U.S. National Travel and Tourism Office.