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Bloomberg Quint
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US Economy Is Set To Lose Billions As Foreign Tourists Stay Away
- The US economy may lose billions of dollars in revenue in 2025 due to reduced foreign tourism and boycotts of American products.
- Arrivals of non-citizens to the US by plane dropped nearly 10% in March compared to the previous year.
- Goldman Sachs estimates that reduced travel and boycotts could result in a GDP hit of almost $90 billion, affecting approximately 0.3% of the GDP.
- International travelers spent a record $254 billion in the US in the previous year, but current geopolitical tensions and economic uncertainty have deterred many potential visitors.
- Concerns over border hostility and rising geopolitical frictions have led individuals like Canadian videographer Curtis Allen to cancel US vacation plans and avoid American products.
- Retail spending from international tourists in the US, amounting to almost $20 billion, could be at risk.
- Early indicators show a decline in airfares, hotel rates, and car rental costs, potentially driven by lower demand from foreign travelers.
- US tourism businesses are already feeling the impact, with declines in flight reservations and summer bookings, attributed to negative perceptions about the US.
- Economists warn that the US GDP growth is likely to underperform consensus expectations in 2025 due to factors like tariffs and reduced international travel.
- Despite challenges, some US entities, like Oregon's tourism commission, are still working to attract foreign visitors while considering a potential shift towards targeting domestic visitors.
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