10% Drop in U.S. Visitors in March
Canadian and European Tourists, Once 'Allies,' Now Traveling Elsewhere
Bloomberg reported on the 15th (local time) that the global public's backlash against the Trump administration's high-intensity tariffs and border policies is expected to cause significant losses to the U.S. economy. The Trump administration has become 'unpopular,' leading to boycotts of American products and avoidance of travel to the U.S.
According to the U.S. International Trade Administration (ITA) announcement on the same day, the number of visitors to the U.S. via air travel in March decreased by nearly 10% compared to the previous year.
Goldman Sachs Group estimated that in the worst-case scenario, the damage caused by the decline in U.S. travel and boycotts this year could amount to 0.3% of the Gross Domestic Product (GDP), nearly $90 billion (approximately 128.565 trillion KRW).
Bloomberg particularly reported that many Canadians who had planned to travel to the U.S. have recently canceled their travel plans. Curtis Allen, a Canadian, recently canceled his Netflix subscription and is actively avoiding American products at grocery stores. He said, "Now I have to check the product origin, so grocery shopping takes twice as long."
In fact, according to the consumer price index released by the U.S. Bureau of Labor Statistics on the 10th, airfare, hotel rates, and rental car prices fell last month. Economists from Goldman Sachs and HSBC Holdings analyzed that the decline in demand, including from foreign tourists, may have influenced this downward trend.
According to Bloomberg Intelligence, retail spending by overseas tourists visiting the U.S. could decrease by about $20 billion.
Inflation Insights, a price analysis firm, explained that hotel rates fell by about 11% particularly in the U.S. Northeast, which may be a result of the decrease in Canadian travelers.
According to a report by market research firm OAG Aviation Worldwide, the number of flight bookings from Canada to the U.S. until September has decreased by 70% compared to the same period last year.
On the hotel booking platform Accor SA, summer hotel bookings in the U.S. by European tourists also dropped by 25%. S?bastien Bazin, CEO of Accor, said that as cases of European tourists being detained during U.S. immigration inspections have become known recently, Europeans seem to be turning their attention to other travel destinations.
Joseph Brics and Megan Peters, economists at Goldman Sachs, stated in a report at the end of last month, "The U.S. tariff announcements and a more aggressive stance toward traditional allies have damaged global public opinion of the U.S. This backlash, in addition to the direct negative effects of tariffs and retaliatory export declines, provides another reason why the U.S. GDP growth rate in 2025 may fall short of market expectations."
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