International Tourists Are Avoiding the US: What you need to know about Los Angeles’ Economy? - Travel And Tour World (2025)

Friday, March 28, 2025

As the United States intensifies its “America First” immigration policies under the Trump administration, international tourists are increasingly rethinking their plans to visit the country. Governments worldwide have issued warnings and advisories to their citizens, cautioning them about heightened scrutiny and an unwelcoming environment in the U.S., significantly affecting key tourism destinations, particularly Los Angeles.

The implications of these international advisories are severe for cities like Los Angeles, whose economies heavily rely on tourism revenues. According to the official Los Angeles Tourism & Convention Board, international tourists contributed approximately $34 billion to the local economy in 2022 alone, directly supporting around half a million jobs. Canadian visitors, a critical demographic, typically spend over $400 million annually in Los Angeles. Any sustained downturn in these visitor numbers could have devastating effects.

Recent policy changes and travel restrictions have caused alarm globally. Canada’s government, via official channels like travel.gc.ca, has notably cautioned its citizens about traveling to the U.S., highlighting concerns over increased border scrutiny and unpredictable policy enforcement. While earlier forecasts by Tourism Economics, a reputable industry analytics firm often referenced by government tourism bureaus, predicted a robust 9% increase in international tourist arrivals this year, current projections now estimate a sharp 5% decrease—equivalent to an $18 billion loss in potential spending.

Los Angeles, home to iconic tourist landmarks such as Hollywood Boulevard, Grauman’s Chinese Theatre, and numerous cultural attractions, is acutely vulnerable to this shift. Already grappling with financial pressures from recent wildfires and an estimated $1 billion budget deficit—as detailed in recent fiscal reports from the City of Los Angeles (lacity.gov)—the local economy faces significant uncertainty without the anticipated influx of international tourist dollars.

Moreover, decreased international visitation doesn’t merely affect hotels, restaurants, and entertainment venues—it trickles down through various sectors of the local economy, including transportation services, retail shops, and cultural institutions. Many small businesses dependent on tourism revenue are particularly at risk, potentially leading to higher unemployment and reduced economic stability citywide.

The U.S. Department of Commerce’s National Travel and Tourism Office (travel.trade.gov) acknowledges the substantial economic benefits derived from international tourism, highlighting the importance of maintaining a welcoming environment to sustain economic growth and job creation. Yet, the federal government’s strict immigration enforcement and travel restrictions appear to conflict with these economic goals, inadvertently discouraging tourists and creating an uncertain climate for international visitors.

As a result, the City of Los Angeles and tourism-dependent businesses are left to manage the immediate impacts. Industry leaders advocate for clearer federal guidance and proactive marketing strategies to counter negative perceptions abroad. Meanwhile, local authorities are actively working to reassure international visitors of their welcome status, emphasizing Los Angeles as a safe, diverse, and vibrant destination.

Ultimately, the reality of declining international tourism underscores the interconnectedness of today’s global economy. Policies perceived as unfriendly or restrictive have profound economic repercussions, particularly for tourism-reliant cities like Los Angeles. Without swift action and policy adjustments, the city’s famously bustling tourist sites may become quieter, amplifying economic challenges across Southern California.