Travel is a Major Economic Driver for the U.S., But Trump’s Policies Could Dampen Its Appeal Pre-FIFA World Cup

The travel industry is poised to bring in substantial revenue from high-profile international events. However, this boom is under threat.

President Trump’s policy decisions and how they are perceived might prompt some potential visitors to reconsider their travel plans to the U.S., prior to significant events like the FIFA World Cup, the nation's 250th anniversary, and the upcoming Summer Olympics.

Lisa Simon, head of the International Inbound Travel Association, described the current situation as a "perfect storm."

The U.S. administration's stance on immigration and intensified enforcement by ICE have led to apprehensions overseas about visiting the U.S. The 'Big Beautiful Bill' increased visa charges and cut financial support for the entity that markets U.S. tourism, potentially discouraging international tourists even further.

Even in the absence of mega-events such as the World Cup, tourism is a critical economic sector. In 2024, it witnessed $1.3 trillion in expenditures, supporting 15 million jobs, and is one of America’s top service exports, pulling in $181 billion from international visitors.

The travel sector is already experiencing drawbacks. There has been a reduction of over 6% in year-to-date international arrivals under Trump, according to Simon, and projections suggest that the trend might worsen. Some association members have reported as much as a 40-60% drop in bookings in specific markets.

Despite maintaining its status as a preferred destination, the United States' share of international tourism is declining, while other regions, notably in Europe and Asia, are appealing more to global travelers. For instance, China’s easing of visa restrictions has attracted more tourists.

Policy Impacts on Travel Costs

Erik Hansen, who manages government relations at the U.S. Travel Association, explained the two main barriers discouraging foreign visitors: travel costs and a lack of perceived hospitality.

"The 'Big Beautiful Bill' exacerbated issues in both areas," Hansen indicated. The bill increases fees significantly for foreign visitors, adding a new $250 Visa Integrity Charge for those from visa-required countries, raising overall visa costs to $435.

This fee hike means higher expenditures just to enter the U.S., potentially diverting funds away from American businesses. Additionally, government support to Brand USA, the group promoting U.S. tourism, was slashed from $100 million to $20 million.

Brand USA plays a pivotal role in positioning the U.S. as a tourist destination, particularly vital for less prominent locales that could suffer significantly from reduced funding. These areas often rely on Brand USA to attract international visitors.

Navigating Messaging and Perception Issues

Although U.S. policy has not officially changed for most tourists—except those from travel-banned nations—reports of aggressive immigration enforcement have created an unwelcoming atmosphere. This perception is underscored by travel advisories issued by some countries like Germany and the U.K.

There is a focus on illegal immigration that, according to Hansen, might be misconstrued internationally as hostile to all foreign visitors, which he insists is not true.

Efforts like the establishment of a World Cup task force underscore a desire to project a welcoming image for global events.

During the task force’s inaugural meeting, Vice President JD Vance expressed a desire for visitors to enjoy the events but emphasized departure afterward, alluding to penalties for overstaying.

This mixed messaging could result in fewer tourists. Consequently, the travel industry is urging the U.S. government to reinstate Brand USA's funding and reduce visa fees, as increasing travel costs contradicts the administration's goals of expanding exports and reducing trade deficits, according to Hansen.

Hansen concluded, "We’re effectively placing additional tariffs on one of our highest-grossing exports—tourism."