Donald Trump risks £15bn tourism blow as holidaymakers make pledge

The US economy could be dealt a £15 billion blow as tourists ditch the country for other destinations during Donald Trump's leadership. The president's ongoing trade war and aggressive stance on border security have caused a significant drop in foreign tourism.

In March, the number of arrivals of non-US citizens by plane dipped by 10% compared to the same period last year, according to the International Trade Administration (ITA). This risks a $20 (£15) billion loss in retail spending from international tourists, Bloomberg Intelligence analysis found. The worst-case scenario is a $90 (£67) billion loss to the US economy, which accounts for boycotts and reduced travel, Goldman Sachs said.

Economists Joseph Briggs and Megan Peters wrote: "US tariff announcements and a more aggressive stance toward historical allies have hurt global opinions about the US.

"This headwind provides another reason - in addition to the more direct negative impacts of tariffs and drag on exports from foreign retaliation that are already built into our US GDP forecast - why US GDP growth will likely underperform consensus expectations in 2025."

The cost of travelling by plane, staying in a hotel, and hiring a car have all also decreased, a Bureau of Labour Statistics report found.

Canadians played a particularly important role in this drop, with flight reservations down 70% from now until September compared to the same period last year, according to OAG Aviation Worldwide.

This comes after Canadian actor Jasmine Mooney was detained for nearly two weeks after her work visa was reportedly revoked and she was attempting to file a new one.

European tourists are also taking their money elsewhere, with CEO of hospitality company Accor SA, Sebastien Bazin reportig a 25% drop in bookings for the summer.

He said recent border detentions, two of which involved a French and German tourist, have created a "bad buzz" and sent potential holidaymakers to other countries.

In 2024, international tourists spent a record $254 (£191) billion in the US, as per ITA figures. The administration also predicted that the country would see 77 million visitors this year, but this was before the worst of Mr Trump's trade war and recent detentions.