Trump Administration Rattles Tourists: "Vacationers Pause USA Travel Plans"

United States - Ekhbary News Agency

Trump Administration Rattles Tourists: "Vacationers Pause USA Travel Plans"

The U.S. tourism industry is facing growing uncertainty, with reports indicating a decline in inquiries and bookings, particularly from key European markets. Industry experts attribute this trend to policies and measures enacted by the U.S. administration, which have instilled a sense of hesitation among potential travelers.

According to the World Travel & Tourism Council, the United States was the only country globally to record a decline in tourism expenditure in 2025. In this context, Tilo Krause-Dünow, a specialist in North American travel for Canusa Touristik, confirmed that his company observed a 10% decrease in inquiries related to travel to the U.S. last year. This apprehension was particularly noticeable following the Munich Security Conference, negatively impacting travel decisions.

Despite these challenges, Canusa Touristik managed to navigate the year with minimal losses, largely due to its business model relying on long booking lead times. Approximately 80% of trips for 2025 were already confirmed before the wave of political uncertainty began. However, the impact on German travelers, a significant demographic for U.S. tourism (around 1.7 million annually), is becoming increasingly apparent.

Second Trump Presidency's Impact on Travel Plans

Krause-Dünow observes that the second Trump presidency is exerting a more pronounced influence on travelers' vacation plans. Currently, inquiries are down by approximately 10% to 12% compared to the previous year. Notably, customers are making their travel decisions much closer to the departure date, a shift partly attributed to global unrest. On a positive note, the "realization rate" – the proportion of interested individuals who actually book – has increased, indicating that those who express interest are more likely to commit to a trip than before.

Entry Complexities to the United States

Proposed changes to the ESTA system, such as mandatory social media disclosure and DNA collection, have raised significant concerns. Many travel agents question whether they can ethically promote the United States as a destination given the potential hurdles at the border.

Krause-Dünow acknowledges the unease but stresses the need for a factual approach. Social media accounts are already optionally requested, and he deems a DNA collection requirement highly improbable. He also points out that the U.S. employs the Mobile Passport Control (MPC) system, an app that significantly expedites entry by allowing travelers to submit their data digitally in advance. He shared a personal experience of clearing immigration in under five minutes using this system.

The U.S. as a Travel Destination: Challenges and Opportunities

Estimates suggest that about 10% to 15% of potential tourists are currently pausing their U.S. travel plans due to the prevailing news cycle. While the adage "bad news is good news" doesn't apply to tourism, the confidence of those who do travel to the U.S. remains steadfast. Regarding reported entry rejections, Krause-Dünow clarified that some cases stem from travelers lacking the correct visas for their specific purposes. Furthermore, Lufthansa data indicates a roughly 15% decrease in such problematic cases encountered at U.S. borders for flights operated by the airline.

Canada's Rise as an Alternative Destination

In stark contrast, Canada is experiencing a substantial tourism boom. Bookings for 2026 are already up by nearly 20% compared to the previous year, indicating a sustainable trend rather than a mere "Trump protest" phenomenon. However, Canada does not fully replace the U.S. as a destination; it remains a highly seasonal choice for summer or winter ski trips. The U.S., with destinations like Florida and Hawaii, offers year-round appeal.

Factors Driving U.S. Travel Affordability

Despite the perceived image deficit, travel to the U.S. is currently more affordable than it has been in a long time. This is partly due to favorable exchange rates and local price reductions, leading to an estimated 15% to 20% decrease in travel costs compared to 2025. A significant contributing factor is the 28% drop in Canadian visitors to the U.S., which has freed up substantial hotel capacity. Weakening domestic demand also appears to be putting further downward pressure on prices, resulting in highly attractive rates.

Brand USA Budget Cuts and State-Level Promotion

Regarding the significant reduction in the "Brand USA" budget for promoting the country, from $100 million to $20 million, Krause-Dünow noted an unexpected positive outcome. Travel agencies are now receiving unprecedented levels of co-op marketing funds from individual U.S. states. This proactive promotion by states, visible in airports and city centers, effectively cushions the impact of the national budget cuts.

Impact of the FIFA World Cup

The upcoming FIFA World Cup hosted in the U.S. presents a mixed bag. While initial concerns arose about exorbitant hotel prices in host cities (reaching $700 per night for basic hotels), the situation is stabilizing. FIFA is releasing large blocks of reserved rooms back into the market as demand failed to materialize at such extreme rates.

A Message of Welcome

Krause-Dünow offered a piece of advice for the interim U.S. Ambassador in Berlin, Alan Meltzer: "Clearly signal to the German population: 'You are still very welcome!'" He emphasized the need for clear communication that there are no impediments to tourism, as it constitutes a vital economic sector supporting 15.8 million direct and indirect jobs, according to the U.S. Travel Association. Maintaining this requires a prominent and visible welcoming culture.

Ekhbary News Agency