In a worrying snapshot of the US tourism industry, a new major survey has revealed that one in two tourism operators and destinations have seen a dip in business – and are bracing for worse ahead.
Jointly conducted by the National Tour Association (NTA), American Bus Association (ABA) and Student & Youth Travel Association (SYTA), the survey ran from 25 March to 9 April, which covers a week before and after US President Donald Trump’s tariff rollout on 2 April, capturing growing concerns about declining inbound travel.
In the study, more than half (51%) of respondents say they have lost business, bookings or visitors from Canada or overseas, with just a quarter (25%) reporting no impact. One in six respondents (16%) say they are unsure, while the remaining respondents don’t handle international travel.
Among the findings, nearly two in three (63%) sellers, including destination marketing organisations (DMOs), hotels, attractions and restaurants, report being impacted – and the effects on these businesses are clear: 61 per cent have seen cancelled room nights, 56 per cent reported lost revenue and 41 per cent observed a drop in overall visitation.
Tour and coach operators fared slightly better, with one in three (32%) reporting impacts. However, nearly half (42%) still flagged lost revenue.
“I’ve spoken with many of our Canadian tour operators, and the significant losses they’re experiencing based on Canadian travellers cancelling plans to visit the United States are now being reflected in what our US destinations and suppliers are telling us,” NTA President Catherine Prather said.
“The damage to business is happening now and will continue in the future.”
Poor outlook
Indeed, future business looks shaky too, with almost half (46%) of those polled seeing a drop in international group interest. Less than a quarter (22%) reported no impact.
“This survey reinforces what many of us are seeing across the group travel industry: economic uncertainty and reduced international visitation are creating real headwinds for operators, destinations and service providers alike,” ABA CEO Fred Furguson said.
“But our $100 billion industry has always been resilient, and through our continued partnership with NTA and SYTA, we’re committed to telling the story of group travel’s economic impact.
“Together, we’ll support the recovery and help prepare America for the mega-decade of major events that lies ahead.”
When it comes to chief concerns among the surveyed businesses, economic uncertainty topped the list, followed closely by international relations and falling group demand. Interestingly, former top worries like workforce shortages and operational costs have slipped down the priority list.
The study also revealed what US tourism businesses want next: stronger advocacy for travel-friendly policies and more robust promotion to international travellers.
“The experience of travel outside one’s own immediate environment can expand a person’s understanding of people who differ from them and increase empathy for others,” SYTE CEO Carylann Assante remarked.
“It is also essential to reiterate the importance of tour and travel – including foreign travel – to our national economy.
“Together we ask that you reassure our friends at home and abroad that the United States is ready to accept all secure travel into the country.”
What US govt data shows
The findings come after fresh US Department of Commerce data showed that visitation to the United States had dropped significantly year-on-year in March 2025.
Last month, the States welcomed 2,391,265 international visitors (excluding Canada and Mexico), which was down 12 per cent from 2,706,146 in March 2024.
Visitation from Australia, meanwhile, fell around 7 per cent from 64,418 to 59,859 y-o-y in March 2025.
Trump’s take
According to PBS, when asked last week about the decline in international US tourism, Trump said that, “There’s a little nationalism there, I guess, perhaps”, and that “it’s not a big deal”.
According to CBS News, Wall Street firm Goldman Sachs recently forecast that American revenue could fall by up to $90 billion (AU$140 billion) this year, due to reduced US tourism and US product boycotts.
“Foreign boycotts of US products will likely impose a modest drag on US GDP growth in 2025, mostly driven by a pullback in foreign tourism,” the analysts said in a note to clients two days before the tariff rollout.
After Trump announced the sweeping tariffs, the Australian Travel Industry Association (ATIA) told Karryon the tariffs likely wouldn’t apply to services or people, and hence, US tourism directly.
