The U.S. Travel Association said the travel industry is seeing concerning trends in both domestic and international-inbound travel, and said a host of factors are to blame, including the strong dollar and the state of U.S. messaging right now.
The remarks come as aviation data company OAG reported this week that advanced bookings between the U.S. and Canada, the No. 1 source market for international travel to the U.S., have plummeted by more than 70% for the summer flying season.
Tourism Economics had revised its U.S. inbound travel forecast last month, predicting a decline of 5.1% in 2025, down from its initial projection of 8.8% growth. The group cited escalating global trade tensions, saying that “as global trade policies remain in flux, industry stakeholders must recognize the critical link between economic policy and travel demand. Our findings warn of high-risk consequences for the U.S. travel sector, with broad economic implications beyond tourism. Industry collaboration will be essential in mitigating negative impacts.”
The research firm also said that inbound travel spending in 2025 could fall 12.3%, a $22 billion annual loss.
U.S. Travel did not mention the tariffs or trade policies among the potential factors reducing travel, which it attributed to “a variety of factors, including a strong dollar, long visa wait times, concerns over travel restrictions, a question of America’s welcomeness, a slowing U.S. economy and recent safety concerns.”
The association said the safety issues refer to “the sentiment in recent months from some travelers expressing safety concerns.”
“These challenges are real and demand decisive action,” U.S. Travel stated. “U.S. Travel is actively working with the White House and Congress to advance policies that drive economic expansion and keep the U.S. competitive on the global stage. In 2024 alone, travel injected $1.3 trillion into the U.S. economy and supported 15 million jobs across the country. By working together with policymakers, we can reinforce travel’s role as a cornerstone of the U.S. economy.”