What a slowdown in travel to U.S. could mean for America's tourist hubs

Guno צְבִי

We fight, We win, Am Yisrael Chai
According to Sault Ste. Marie's International Bridge Administration, the passenger car traffic in April was down 44% compared with last year. And while the waning bridge traffic may not mean much from the view of Canada's second-largest province and most popular destination, to the historic Michigan town it certainly does.

"They have 70,000 people," Hoath said. "And if they're not coming over and buying in our stores, then it affects us much more."

Slowdown in travel to the U.S.

Sault Ste. Marie is not alone in its tourism concerns. Though travel this Memorial Day weekend is expected to be the highest on record, one group has been noticeably absent at U.S. travel checkpoints in recent months: international travelers.

As to what's behind the overall slowdown in international travel to the U.S., experts point to the Trump administration's stricter immigration policies, the strength of the U.S. dollar and long visa wait times. Aggressive tariff policies have also left a bad taste in many travelers' mouths.

"Shifting sentiment and perceptions of the U.S. are expected to continue to weigh heavily on travel demand," said Aran Ryan, director of industry studies at Tourism Economics.

As of April, flight bookings to the U.S. for the May–July travel window are 10.8% lower than they were the same period last year, according to the research firm. It projects an 8.7% decline in international arrivals in 2025.

International travel to the U.S. fell 14% in March compared with the same period last year, according to the the U.S. Travel Association.

The slowdown in international travel threatens to destabilize America's tourism industry which plays a vital role in supporting the nation's economy.

"International inbound travel is hugely important from an economic standpoint — people that come to the U.S. and visit spend on average $4,000 per visit," a spokesperson from the U.S. Travel Association, told CBS MoneyWatch.

Those dollars may already be slipping away: The World Travel & Tourism Council projects that spending by international visitors to the U.S. will drop to $169 billion, or 7%, this year, from $181 billion in 2024. That's a 22.5% decrease from peak tourist spending of $217 billion in 2019, before the pandemic.

Fewer international travelers could also take a toll on the workforce that props up America's tourism industry: Nearly 10% of American jobs are tied to the travel industry, according to the World Travel & Tourism Council.

 
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