Thursday, June 5, 2025

Welcoming faces for US international tourists

Tourism is a significant economic driver in the United States. In 2023, it amounted to $1.2 trillion and contributed to 2.6% of our GDP. International tourism accounts for $155 billion or 13% of the total revenue. 

Both Mexico and Canada dominate that segment with 40% due to geographic proximity, while Europe (UK, Germany, France) accounts for another 20% of overseas visitors. Asia (Japan, China, South Korea) is still small in comparison with about 12%. Knowing this, one could wonder if the US political troika (Trump, Vance and Musk) will have an impact on these foreign visitations or if a weakening dollar will suffice to offset that?

The potential impact of Trump’s policies (tariffs, immigration rhetoric), JD Vance’s perceived isolationism and extremism, or Musk meddling into foreign politics, based on early indicators and historical precedent suggest possible risks. Tariffs on imports (Chinese goods, EU products) could inflate costs for travel-related services (hotel supplies, rental cars, food), making US trips more expensive. 

Also, countries hit by US tariffs might discourage tourism to the US. as a symbolic or economic response. In addition, Trump’s proposed merit-based immigration, past policies (like travel bans), rhetoric around border security and "America First" may fuel perceptions that the US. is less welcoming and therefore not encouraging tourism. 

Vance’s skepticism of NATO, Ukraine aid, and trade deals could signal the US. disengagement, alienating allies whose citizens are key tourists, same thing with Musk supporting extreme right in Germany and the UK and threatening those who don’t like him with his chainsaw. 

So, will foreign visitors still show up in large numbers to the US over the upcoming months? We’ll see...

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