[THE VIEW] The Crisis of the U.S. Tourism Industry

'Economic Losses Caused by Political Changes'
Tourist Numbers Expected to Drop by 5%... Concerns Over 13 Trillion Won in Losses

The Crisis in the U.S. Tourism Industry: Economic Losses Caused by Political ChangesThe United States is one of the most popular travel destinations in the world. In 2024 alone, it attracted 72.39 million tourists. From major cities like New York, home to the Statue of Liberty, to natural attractions such as Yellowstone National Park, and theme parks like Disney World, the U.S. offers a diverse range of tourism resources. This has enabled the country to consistently attract international tourists for decades.

However, the number of tourists visiting the U.S. is expected to decline this year. The number of Korean visitors to the U.S. has already shown a downward trend. According to data from the Korea Tourism Organization, compared to January of the previous year, the number of Korean overseas tourists traveling to the U.S. in January this year has already decreased by 8.6%.

Tourism research agency Tourism Economics recently predicted in a report that the total number of tourists to the U.S. will decrease by 5% this year. Since President Trump's inauguration, there have been noticeable changes in tourist numbers over the past few months. For example, among tourists to the U.S., Canadians make up the largest share. According to a March 2024 survey, about 40% of Canadians who had planned to travel to the U.S. canceled their trips. Air Canada decided to reduce flights between the U.S. and Canada starting in March this year.

The U.S. Travel Association warned that even a 10% decrease in Canadian tourism to the U.S. could result in a loss of approximately 1.6 trillion won (2.1 billion dollars) in tourism revenue and about 140,000 tourism industry workers could lose their jobs. Not only Canadians but European tourists, who account for about 30% of U.S. visitors, are also expected to decline significantly.

Political Factors and Changing Perceptions

Experts analyze that this phenomenon is mainly due to changes in how foreigners perceive the U.S. Trump's foreign policy has shown hostility toward other countries, and protectionist policies have the potential to trigger tariff wars. Additionally, a culture of exclusion against foreigners and immigrants has begun to spread domestically, along with an increase in aggressive remarks toward sexual minorities.

A study from the United Kingdom found that after Trump's re-election, people in Western Europe have tended to view the U.S. more negatively. This social atmosphere and political change are causing foreigners to perceive the U.S. as a country they no longer want to visit.

Border Issues and Visa Restrictions

Border issues also contribute to the decline in tourists. Recently, some tourists have been arrested or detained at U.S. borders due to visa problems. This issue is particularly prominent at the U.S.-Mexico border. During Trump's first term, Mexican tourists decreased by 3%, and in February this year, flights between the U.S. and Mexico dropped by 6% compared to the previous year.

Visa issuance has also been delayed, with nationals from Brazil or Turkey potentially waiting up to 700 days to obtain a U.S. visa. Western European countries such as the United Kingdom, Germany, and France have issued general travel advisories regarding trips to the U.S. About two weeks ago, the Korean Ministry of Foreign Affairs also posted a notice on its overseas safety travel website concerning the strengthening of U.S. immigration policies.

The Ministry of Foreign Affairs warned that even if entering with a legitimate tourist visa, there is a possibility of deportation due to content posted on social media or minor disputes causing disturbances. In fact, there was a case where a foreign national student legally residing in the U.S. was urgently arrested for participating in an anti-Semitic rally. This has created a situation where even visitors legally holding valid visas must face legal risks.

Economic Factors and Outlook

Besides social and political factors, economic factors also make it inevitable that U.S. tourism will decline overall. Tariffs and trade wars could lead to recessions in countries worldwide, which would reduce overall tourism demand. Moreover, the strong dollar has increased the cost of traveling to the U.S. Experts predict that tourism revenue could decrease by about 13.8 trillion won (18 billion dollars) annually by 2025.

The U.S. government needs to recognize that its conservative foreign policy could cause significant losses not only in the export and import of tariffed goods but also in the tourism service industry.

Seo Boyoung, Professor at Indiana State University, USA