President Trump’s aggressive border and immigration policies are triggering a major drop in tourism from Australia and other allies, significantly denting US travel income and soft power.
At a Glance
- Australian visits to the US dropped by 7 percent in March 2025 vs. March 2024
- Overall international arrivals to the US plunged 11.6 percent in March, signaling potential losses of $9–12 billion in travel revenue for 2025
- Heightened customs checks, device searches, detentions, and a new travel ban on 12 countries are turning travelers away
- Alternative destinations such as Japan, Italy, Portugal, and South Korea are seeing increased bookings
- Business travel is shifting toward Asia and the Middle East, and airlines are cutting flights to major US hubs
Stricter border measures spook tourists
In March 2025, US arrivals from Australia dropped by 7 percent (4,559 fewer visitors)—the steepest decline since COVID-19, according to US Trade Administration data.
Border incidents, including detentions, device inspections, and a deported Australian who was reportedly insulted at customs, have shaken traveler confidence, as detailed in The Guardian’s report on LGBTQ+ cancellations.
Further heightening concerns, the Trump administration reinstated a travel ban for citizens of 12 nations effective June 9, increasing uncertainty for international travelers.
Tourism revenue drops and travel choices shift
The World Travel & Tourism Council estimates up to $12.5 billion in potential tourism spending losses this year due to Trump’s policies.
Travel agencies report sharp declines: Flight Centre saw a 12–15 percent drop in US bookings from Australia, while Intrepid Travel recorded a dramatic 44 percent plunge in April, according to news.com.au.
Meanwhile, Asian and European destinations—like Japan, Italy, Portugal, and South Korea—are enjoying a surge in interest, driven by easier visas, lower entry tensions, and perceptions of safety, as noted in The Australian.
Broader economic and diplomatic ripple effects
Airlines are reducing flight frequencies to US cities like Los Angeles and New York, reflecting weakened demand from outbound Australian carriers, as detailed in news.com.au.
Business travel remains somewhat stable, but increased tariffs and diplomatic tensions are redirecting corporate interest toward Asia and the Middle East.
Watch a report: US tourism numbers decline under Trump administration.
What can the US do next?
To counteract this trend, experts recommend reevaluating border and visa procedures to make them more transparent and traveler-friendly.
Rebuilding the country’s image through cultural diplomacy and consistent policy is essential. Without these reforms, the US risks losing both billions in revenue and its historic appeal as a top global destination.
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