The tourism industry is taking a direct hit from a decline in foreign visitors. According to industry reports, spending by international tourists visiting the U.S. this year is projected to fall by 4% compared to last year, amounting to about $8.3 billion in losses.

The World Travel & Tourism Council (WTTC) forecasts that the tourism sector's revenue shortfall could reach up to $12.5 billion this year, making the U.S. the only country among 184 economies expected to see a decline in international visitor spending.

Since the Trump administration took office, tightened immigration visa policies combined with escalating tariff disputes have led to a broader reduction in demand for U.S. travel. As of April, hotel occupancy rates stood at 63.9%, down 1.9 percentage points from the same period last year.

Revenue per available room (RevPAR), the average revenue generated per occupied room, also dipped 0.1 percentage points to $103.11. In a prime tourist destination like Las Vegas, visitor numbers in June totaled just 3.09 million, an 11.3% decrease from the previous year, with occupancy rates falling 6.5 percentage points to 78.7%.

The tourism sector attributes much of the overall revenue drop to reduced visitors from neighboring countries like Canada and Mexico, which have been severely impacted by tariff disputes. Indiscriminate tariffs imposed on allies such as the European Union have fueled anti-U.S. sentiment, while a strong U.S. dollar is adding exchange rate burdens, further deterring travelers.

Inbound revenue from foreign tourists is expected to decline even further moving forward. The federal government is currently advancing a pilot program that could require tourist visa applicants to post a bond of up to $10,000, while from October onward, a $250 "visa fee" will also be imposed.

Additionally, the visa interview waiver program has been significantly curtailed, placing nearly all applicants under in-person scrutiny. The administration plans to subject the approximately 55 million foreigners already holding U.S. visas to re-screening for stricter oversight.