International tourists are rethinking travel to the U.S.: What this means for L.A.
It's a small world after all.
As America embarks on its 'America First' foreign policy, many non-Americans are feeling unwelcome. Dozens of countries have issued travel advisories to their citizens amid the crackdown on immigrants in the United States. Some, such as Canada, are advising against travel to the U.S. as President Trump tries to make the case for making their entire country the 51st state.
This unwelcoming environment for foreigners can have a potentially huge impact on the economy, particularly through the tourism industry. Los Angeles, which relies heavily on tourist dollars, is especially vulnerable. The local economy is already in a precarious state due to recent fires.
In 2022, the most recent year for which numbers are available, foreign visitors spent about $34 billion in Los Angeles, supporting roughly half a million local jobs. Canadians alone annually spend more than $400 million in L.A. The absence of these visitors is symptomatic of a broader trend, as more and more foreign tourists avoid Hollywood Boulevard and Grauman's Chinese Theatre.
This decline can ripple throughout the entire domestic economy, especially now that L.A. faces a potential $1 billion budget deficit.
The research firm Tourism Economics had initially forecast a 9% increase in tourist visitors to the United States this year. Now, they are predicting more than a 5% decline, which translates to an $18 billion drop in spending.
So, what's the takeaway from all of this? Quite simply, yes, it is a small world after all. And in places like L.A., it may become an increasingly lonely one.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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