A recent survey conducted between March 25 and April 9, 2025, reveals troubling trends in the U.S. tourism industry. The study, a joint effort by the National Tour Association (NTA), American Bus Association (ABA), and the Student & Youth Travel Association (SYTA), found that many tourism businesses are struggling. The survey was taken shortly before and after the U.S. President’s new tariffs were introduced on April 2, heightening concerns over a decline in international travel to the U.S.
The survey results show that more than half (51%) of respondents, including operators, destination marketing organizations (DMOs), hotels, attractions, and restaurants, reported a decline in business. This decline includes a decrease in visitors and bookings, particularly from Canadian and international tourists. In contrast, only 25% of respondents said they saw no impact, while 16% were unsure, and the rest did not deal with international travel.
Revenue Losses and Cancellations in Key Sectors
The survey also highlighted that nearly two-thirds (63%) of businesses, including hotels, attractions, and restaurants, felt the effects. Among these businesses, 61% experienced canceled bookings, 56% reported lost revenue, and 41% saw a drop in visitation. Tour and coach operators fared slightly better, with only a third (32%) of them reporting impacts. However, 42% of these operators also experienced revenue losses.
The decline in international visitors, especially from Canada, has had a significant effect on many U.S. tourism businesses. NTA President Catherine Prather noted that the reduction in Canadian tourists has been especially damaging, leading to cancellations across U.S. destinations. Prather pointed out that these economic losses are not short-term and are expected to continue.
Uncertain Future for U.S. Tourism
Looking ahead, the future of U.S. tourism remains uncertain. Nearly half (46%) of those surveyed reported a decrease in interest from international groups, which could have long-lasting effects on the industry. The ongoing economic uncertainty and reduced international visitation are creating major challenges for tourism operators. Only 22% of respondents said they had not seen a decline in interest from international groups.
ABA CEO Fred Furguson acknowledged the difficulties faced by the industry, citing economic uncertainty and a decline in group travel demand. Despite these challenges, he expressed optimism, stating that the U.S. tourism industry has bounced back in the past and will continue to adapt. Furguson, along with other leaders, emphasized the importance of collaboration in promoting the value of group travel and preparing for events that could help revitalize the industry.
Rising Concerns Over Economic and Political Factors
The survey results also highlighted growing concerns about economic and political issues affecting the tourism sector. Economic uncertainty and falling demand for group travel were identified as top concerns by business owners and tourism professionals. While workforce shortages and rising operational costs had been major concerns in the past, these issues have become less of a priority for the industry.
Tourism businesses are calling for stronger advocacy for travel-friendly policies to attract international visitors. The survey stressed the need for greater promotion of U.S. destinations abroad, especially in light of current economic and political challenges.
Global Impact of U.S. Tourism Decline
The decline in U.S. tourism is not only affecting businesses within the country. As international tourism plays a crucial role in shaping global travel trends, the slowdown in U.S. tourism is likely to have a ripple effect on countries that depend on American visitors. The reduced revenue from overseas travelers will have far-reaching consequences for the global travel industry.
The decrease in international tourists to the U.S. may also alter global travel patterns, with travelers seeking alternative destinations.
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