Are the tariffs and other policies of the Trump administration having an impact on inbound US travel and those suppliers? According to a recent survey by American Bus Association (ABA), National Tour Association (NTA), and Student & Youth Travel Association (SYTA), demand has dropped from international leisure travelers in recent months, including one of the US’ most significant partners: Canada.
NTA published the findings of the report in late April, finding that:
- Just over half of all respondents (51%) say their business or destination has lost business, bookings, or visitation from Canadian or other international groups; 25% say they’ve seen no impact; while another 16% are unsure at this time. The remaining respondents do not operate international inbound travel.
- Participants were asked to be specific about the impact of reduced international visitation. 61% of DMOs and hoteliers say they have experienced canceled room nights, 56% are seeing lost revenue, and 41% have seen a drop in overall visitation.
- Asked if they have seen a reduction in future business leads or interest from Canadian or international groups, 46% of all respondents report seeing a decline; 22% say they’ve seen no impact; while 17% are unsure at this time. The remaining respondents do not operate international inbound travel.
- While only 32% of U.S. tour and motorcoach operators say they’ve been impacted, 63% of sellers (DMOs, attractions, hotels, and restaurants) report being impacted.
According to the report, DMOs, hotels, and restaurants are having the greatest impact, with 63% of sellers saying it’s impacting their business. Among tour and motorcoach operators, 32% report a loss of business from international travelers. Additionally, those surveyed “cited economic uncertainty/recession risk/consumer confidence” as the primary concern for the coming year.
“I’ve spoken with many of our Canadian tour operators, and the significant losses they’re experiencing based on Canadian travelers canceling plans to visit the United States are now being reflected in what our U.S. destinations and suppliers are telling us,” said NTA President Catherine Prather. “The damage to business is happening now and will continue in the future.”
For additional context, the US National Travel & Tourism office, a division of the US Commerce Department, reported that inbound travel from Western Europe had dropped 12% in March, including usually reliable tourists from the UK and Germany. The administration has also proposed making entry into the US more difficult for dozens of nationals from countries deemed dangerous to American security, which included countries like Venezuela, Cuba, and North Korea. Several other countries, including Russia, Pakistan, and several African nations, may face heightened restrictions rather than outright bans.
“This survey reinforces what many of us are seeing across the group travel industry: Economic uncertainty and reduced international visitation are creating real headwinds for operators, destinations, and service providers alike,” said ABA CEO Fred Furguson. “But our $100 billion industry has always been resilient, and through our continued partnership with NTA and SYTA, we’re committed to telling the story of group travel’s economic impact. Together, we’ll support the recovery and help prepare America for the mega-decade of major events that lies ahead.”
While the news is certainly raising concerns, Business Travel News reports that inbound corporate travel—including from Canada—is not facing the same precipitous drops as leisure, with the US National Travel & Tourism Office backing up those claims based on demand for business visas.
Visit ntaonline.com, buses.org, and syta.org for more information about the report.
[04.29.25]