A number of US President Donald Trump’s policies could cost the country a staggering £49 billion, as international tourism to the country drops by five per cent this year
The Trump administration’s potential travel bans from countries worldwide are causing would-be international tourists to reconsider their holiday plans in the US, new studies indicate.
Rumours of entry restrictions are contributing to America’s shift towards isolationism on the global stage, epitomised by President Trump’s “America First” mantra.
Should a decrease in foreign visitors reflect the success of such policies, it could simultaneously strike a blow to the American economy. International travel is expected to plummet by about five per cent this year, leading to a staggering £49 billion ($64 billion) hit to the travel sector, as per Tourism Economics’ analysis.
The firm also hinted that Trump’s liking for tariffs might impact domestic travel, with US residents likely to tighten their belts in response to “slower income growth and higher prices”. Furthermore, overseas tourism may suffer due to “a trifecta of slower economies, a stronger dollar, and antipathy towards the US”.
These significant financial losses correlate with a 5.1 percent decline in international trips to the States, a stark contrast to the 8.8 percent rise previously forecasted. This is coupled with an 11 percent fall in expenditures by non-US tourists.
A controversial stance on the Russia-Ukraine conflict and outlandish threats to annex Greenland and Canada have led countries worldwide to keep their distance from the US, with Canadian visits to the States already plummeting by 15 per cent this year, reports the Express.
“In key origin markets, a situation with polarising Trump administration policies and rhetoric, accompanied by economic losses to nationally important industries, small businesses and households, will discourage travel to the US,” the report highlighted. “Some organisations will feel pressure to avoid hosting events in the US, or sending employees to the US, cutting into business travel.
“Travel from Western Europe, which represented 37 per cent of overseas travel to the US last year, is susceptible to declines as a result of both tariffs and the administration’s perceived recent realignment with Russia in the war with Ukraine.”
The UK’s economic outlook has also taken a hit from the escalating global trade war, with the Organisation for Economic Co-operation and Development (OECD) slashing its growth forecast from 1.7 per cent to 1.4 per cent for 2025.
However, it’s Canada and Mexico that have suffered the most severe cuts to their annual growth forecasts after President Trump slapped a hefty 25 per cent tariff on imports from these nations, along with China, just last month. Canada’s growth is now expected to crawl at a mere 0.7 per cent, while Mexico’s economy is predicted to shrink by 1.3 per cent.
“Further fragmentation of the global economy is a key concern,” declared the OECD in its interim economic outlook report. The illustrious organisation also delivered a stark warning about a potential “significant” impact on living standards, cautioning that “consumers [facing] much of the burden of higher tariffs”.