Foreign tourist boycott begins, as businesses brace for impact

The town of Anacortes, nestled on the coast of Washington state, is usually a hotspot for tourists during the summer season. However, this year, local business owners like Kaia Matheny, co-owner of Adrift Restaurant, are preparing for a decrease in foot traffic and financial losses. The current trade tensions and immigration concerns are causing foreigners to rethink their travel plans to the U.S.

Adrift Restaurant, a charming farm-to-table eatery with a nautical theme, is feeling the impact of fewer customers from Canada, the top source of international visitors to the U.S. In March, air and land arrivals from Canadians dropped significantly compared to the same time in 2024, according to Tourism Economics. This decline in foreign tourists is expected to continue through the summer, making Matheny cautious about the upcoming peak season.

The tourism industry is a significant export for the U.S., with foreign visitors spending over $180 billion in 2024. However, international visits to the U.S. have decreased by 12% year-over-year in March, affecting markets from Western Europe, Asia, and South America. Data shows that overseas summer travel bookings to the U.S. are lagging behind last year’s numbers, with Canada and Mexico experiencing even steeper declines.

The loss in international tourism is projected to cost the U.S. economy billions of dollars in 2025. This trend is worrisome for many businesses and destinations that rely on international visitors for revenue. While the decline in tourism seems to be more of a U.S. issue rather than a global one, it still poses challenges for the travel industry.

Various factors contribute to the decline in international visitors, including trade tensions, security concerns, and immigration policies. President Donald Trump’s tariffs and trade actions have raised fears of a global trade war, leading to warnings from countries like China and European nations about traveling to the U.S. Additionally, concerns about immigration policies and border security are deterring potential visitors.

The recent drop in Canadian search activity for travel to the U.S. indicates a shift in travelers’ preferences. Many are choosing alternative destinations like Europe and Mexico instead of the U.S. due to the current climate. Social media posts reflect this sentiment, with some individuals canceling U.S.-based trips in favor of other countries.

Overall, the outlook for U.S. tourism in 2025 is uncertain, with experts predicting a challenging year ahead. The industry will need to adapt to changing traveler preferences and address concerns about trade, security, and immigration to attract visitors back to the country. Business profits have taken a sharp hit as a result of lost customers due to the travel slowdown. According to economist Aaron Terrazas from Gusto, small and mid-sized businesses have seen a significant decline in profitability, with the share of profitable tourism companies dropping to 32% in April 2025 from 41% and 43% in the previous two years. This category includes tour operators, condo or time-share agencies, and ticket or reservation agencies.

Similarly, the share of profitable accommodation businesses has also decreased to 36% from 44% and 45%. This category comprises small hotels and motels, guesthouses, cottages and cabins, and RV parks and campgrounds. The main reason for this decline in profitability is slower customer traffic and lost income, rather than increased expenses from inflation or labor costs.

The unexpected and sudden collapse in domestic travel has caught many businesses off guard, leading to a rapid erosion in profitability and revenue. If the slowdown persists, businesses may be forced to make tough decisions, including potential staff cuts. Ryan Sweet, chief U.S. economist at Oxford Economics, noted that foreign visitations to the U.S. are the largest services export in the country, and the outlook is quickly deteriorating.

The financial losses come at a time when the U.S. has not yet returned to pre-pandemic levels of travel, further straining businesses that rely on tourism. While non-residents account for less than 10% of U.S. tourism demand, they are significant spenders. The average overseas visitor spends more than $4,000 per person per visit, which is eight times more than the average American tourist spends domestically.

The decline in foreign travel will have a disproportionate impact on certain areas such as Las Vegas, Los Angeles, Miami, New York, Orlando, and San Francisco, which attract a large number of foreign tourists. These cities are heavily reliant on tourism as their main economic driver and may struggle to absorb the loss without going into recession.

One example of the community impact of reduced tourism is seen in Anacortes, where the co-owner of Adrift Restaurant, Matheny, has experienced a 4% drop in monthly sales compared to last year. This has led to a decrease in buying from local farms and fisheries, further impacting the local economy. Matheny emphasized the ripple effect of reduced tourism on the community as a whole.

In conclusion, the ongoing travel slowdown has created a great deal of fear among businesses that rely on tourism for their revenue. The uncertainty surrounding the future of travel and the economic impact of lost customers has put many businesses in a precarious position, with tough decisions on the horizon. Water is one of the most vital resources on Earth, essential for all living organisms. It covers about 71% of the Earth’s surface and is found in various forms such as oceans, rivers, lakes, and glaciers. In addition to being crucial for survival, water also plays a key role in shaping the planet’s landscape and climate.

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