US tourism slumps as policies tighten, image worsens

The United States is experiencing a sharp and sustained slump in international tourism, as political rhetoric, tougher immigration policies, tariffs, and travel bans combine to erode the country's image as a welcoming destination.

Tourism Economics, a travel research firm, projected a steep 8.2 percent fall in international arrivals into the U.S. for 2025, with total inbound spending expected to decline by 4.2 percent -- a loss of 8.3 billion U.S. dollars in visitor spending.

Tariffs had already driven up costs and created uncertainty around imported goods, and the latest slump in international travel is making it even harder for local businesses to stay afloat. The situation has fueled fears of further job cuts in hotels, gift shops and dining businesses.

Restaurants, even in some of Los Angeles' most popular districts, are struggling to cope with rising operating costs and fewer foreign tourists.

"We hope that the tariffs are just temporary. It seems like it's this game that's being played right now, and unfortunately there are real life ramifications from this game. We are holding tight, just because we don't know what's gonna happen," said Pierro Sanchez, general manager of a restaurant named Baja Cantina.

The weakening outlook has been compounded by more complicated visa procedures and heightened policy uncertainty, reinforcing concerns that the United States is becoming harder and less inviting to visit.

Hicham Jaddoud, a professor of Hospitality and Tourism at the Bovard College of the University of Southern California, said many travelers now choose other destinations as the country's image has been undermined.

"We do have a PR problem, mainly from the tourism and hospitality area, where we struggle with the U.S. image right now. A lot of consumers have moved to different destinations," he said.

The professor added that cities like Los Angeles, Las Vegas, and Miami are among the hardest hit, forcing local tourism sector to redirect marketing away from global travelers toward domestic visitors.

"They can't rely on international tourism, advertising or marketing dollars have shifted from international to local, and we don't know how long that is going to last. And we all know about how some Canadians are refusing to come here, even if things go back to normal, they are refusing to come back here," he said.

US tourism slumps as policies tighten, image worsens

"China Shopping" is quickly becoming a trendy choice for inbound visitors as China has been easing and optimizing the departure tax refund policy to make it more economical for foreigners to shop in the country.

As foreign visitors immerse themselves in China's rich cultural heritage, diverse landscapes and vibrant cities, they are also attracted by the competitive prices, high-quality goods and diverse shopping options available in the country.

"Be sure to bring an empty suitcase" has become the tongue-in-cheek travel advice on overseas social media platforms for those planning a trip to China.

China has introduced a series of measures since April to optimize its tax refund system for overseas visitors.

The policy optimization has included the establishment of instant tax refund counters in major shopping districts in cities such as Beijing, Shanghai, Chongqing, Chengdu and Guangzhou. Cities including Shanghai and Hangzhou have also introduced online refund options, making the process more efficient.

The continued optimization of tax refund services has better met overseas visitors' refund needs and further fueled their enthusiasm for traveling in China.

As of the end of November, there were 12,252 departure tax refund shops across the country, with more than 7,000 of them offering immediate refund upon purchase services, according to the administration.

China is also relaxing its visa-free policies, allowing for longer stays for overseas visitors. The favorable policies are translating growing inbound travel flows into consumption momentum and emerging as a fresh driver for inbound tourism spending.

Thanks to these beneficial policies, Huaqiangbei in south China's Shenzhen City, a hub for electronic components, received a daily average of over 7,000 foreign tourists in the first half of this year, doubling the numbers recorded in 2024.

The number of overseas tourists claiming China's departure tax refund surged 285 percent year on year in the first 11 months this year, according to data released by the State Taxation Administration on Monday.

In the same period, the sales volume of goods eligible for departure tax refunds and the amount of tax refunds both increased 98.8 percent, according to the data.

'China Shopping' emerges as hot new craze for incoming tourists