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U.S. Faces Sharp Decline in International Tourism, Threatening Billions in Economic Losses

Updated travel advisories and restrictive policies are driving a steep drop in arrivals from Canada and Europe, jeopardizing tens of thousands of hospitality jobs.

Conservative Leader Pierre Poilievre's chartered Air Canada plane arrives at Kelowna International Airport, in Kelowna, B.C., on Friday, April 4, 2025.
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Overview

  • International arrivals to the U.S. have dropped over 11% since March 2024, with Canadian air travel to the U.S. plunging 31.9% year-over-year in March 2025.
  • Western European tourism has declined sharply, with arrivals falling 17% year-over-year, including a 44% decrease from Luxembourg.
  • Several European countries, including the UK, Germany, Denmark, and Finland, have issued travel advisories warning that valid visas no longer guarantee entry into the U.S.
  • The U.S. Travel Association projects that a 10% drop in Canadian tourism alone could result in a $2.1 billion loss and jeopardize 140,000 hospitality jobs.
  • Isolationist policies, restrictive immigration measures, and nationalist rhetoric are cited as key factors driving the downturn, echoing similar trends from the first Trump administration.