The American travel and tourism sector is threatened with a loss of $ 90 billion

The American economy is expected to lose billions of dollars in revenue during 2025, as a result of the decline in the number of foreign tourists and the boycott of some American products, which exacerbates the risks that keep the specter of economic recession existing, according to the Bloomberg Network.

A significant decrease in the number of expatriates

Data issued by the International Trade Administration on Monday showed that the number of foreign travelers to the United States decreased by approximately 10% during the month of March compared to last year.
Also read: How does trade war affect global investment in 2025?
In the worst scenarios, Goldman Sachs estimated that the losses resulting from tourism and boycott are about 0.3% of US GDP, equivalent to about $ 90 billion.

International tourism was a growth engine

International tourism has always been an important source of economic growth in the United States, especially after raising the restrictions imposed by the Kofid-19, which helped recover external travel.
Also read:
But recently, many tourists began to reconsider their destinations, as a result of the escalation of geopolitical tensions, the increase in border scrutiny, and the ambiguity surrounding the global economic situation.
In a remarkable example, a number of Canadians abolished their flights to the United States after President Donald Trump imposed punitive customs duties on Canada, and his controversial suggestion by making it the 51st American state.

An increased boycott of American products and services

The repercussions of the situation were not limited to the decline in the number of visitors, but rather extended to a boycott campaign targeting American products and services, as some consumers canceled their subscriptions on platforms such as “Netflix” and avoided buying American goods.
International travelers spent a record number of $ 254 billion in the United States during 2024, according to the International Tourism Authority.
Last March, the authority expected America to receive about 77 million tourists in 2025, a number close to the pre -pandemic peak, with weightings to achieve a new record in 2026.

The travel sector is under threat

However, those expectations preceded the reports of arrests that affected travelers from European countries such as France and Germany within American airports, which may lose the country a large part of foreign tourism spending, which is estimated at 20 billion dollars, according to an analysis conducted by “Bloomberg Intelligence”.

A sharp slowdown in the sector

Indications have already appeared on a noticeable decline in the tourism sector, where the prices of airline tickets, hotels and car rental services decreased during March, according to a report issued by the American Labor Statistics Office.
Economists in Goldman Sachs and HSBC believe that the decrease in demand from foreign tourists played a pivotal role in this decline.

Fears of tourists turning into alternative destinations

The head of the “Inflies Insights” company pointed out that the decline in hotel prices, especially in the northeast of the country, is approximately 11%, attributed to restrictions and detention on the border, which created a “negative climate” and affected travel decisions.
In the same context, Economists at Goldman Sachs Joseph Brigz and Meghan Peters stressed that customs escalation and extremist attitudes towards traditional allies have damaged the image of the United States globally.
They added that “these opposite winds are an additional factor, in addition to the direct negative effects of customs duties and the weak exports as a result of commercial revenge, which makes us expect less than expected growth in US gross domestic product during 2025.”