Sweeping tariffs levied by the Trump administration on most of the world – many of which are paused until Jul 9, pending negotiations – is another reason deterring tourists from visiting, said observers.
Visitors have also voiced concerns about the crackdown on immigration and fears that they could be denied entry or even detained by border agents.
Official data showed that international arrivals to the US were down more than 5 per cent year-on-year in May.
Lower tourist numbers will lead to fewer hotel bookings and less spending in retail, restaurants and entertainment, which will in turn hit the domestic economy, said analysts.
“Foreign visitors to the US spend, on average, twice what domestic visitors spend per capita,” said professor Andrew Coggins of Pace University’s Lubin School of Business.
The World Travel and Tourism Council said the US is set to lose out on US$12.5 billion in international spending this year. It is the only country among the 184 it analyses that is facing a revenue downturn.
Nejc Jus, the council’s head of research, said the effects will ripple out to the broader economy.
“GDP (gross domestic product) that could have been created by increased international spending would not be created,” he noted.
“An enormous number of jobs that are supported by tourism would be at risk, as well as whole tourism communities.”
