Tag Archives: US travel industry

Leading Travel Trade Association, ASTA, Decries Trump Travel Bans, Tariffs as Economically, Diplomatically Crippling,

Tourists on the ferry to visit Ellis Island and the Statue of Liberty in New York Harbor. Trump travel bans and tariffs are conservatively estimated to cost the $2.6 trillion U.S. travel industry $13 billion in lost receipts from international visitors, and billions more in travel by Americans. “Safe and secure travel is not just good policy. It is the foundation of international cooperation, economic growth and mutual understanding.”  © Karen Rubin/goingplacesfarandnear.com

The American Society of Travel Advisors, a leading travel trade association, is urging the Trump Administration to reconsider its travel bans.

“Every administration has the responsibility to protect national security, and that duty should never be taken lightly,” stated ASTA President & CEO Zane Kerby.But sweeping, country-wide travel bans are a blunt instrument accompanied by sweeping, unintended consequences—hindering legitimate business, discouraging visitors who strengthen our economy while simultaneously discouraging Americans from traveling abroad.

“Travel bans, and simply the threat of such bans, don’t just disrupt inbound travel, they risk diplomatic strain and create uncertainty that ripples throughout the travel industry. That uncertainty harms the businesses of our travel advisor members, 98 percent of which are small businesses comprising an essential piece of the U.S. economy.

“ASTA acknowledges the real need for effective visa compliance and traveler vetting, and we hope our leaders will work collaboratively with the nations involved to resolve those issues without cutting off entire populations. We urge U.S. policymakers to pursue balanced, thoughtful solutions that uphold both our safety and our ideals while allowing the travel industry to thrive in an increasingly competitive environment.

“Safe and secure travel is not just good policy. It is the foundation of international cooperation, economic growth and mutual understanding.” 

On June 17, 2025, the Administration demanded action from 36 additional countries within 60 days to avoid a potential “travel ban” enacted by the U.S. government. This follows a full ban on 12 countries and restrictions on seven others, effective June 9.

The full list contains numerous destinations important both for leisure and business travel. Travel bans are intended to impact those coming in—but can trigger reciprocal restrictions, meaning U.S. citizens may find themselves unwelcome abroad. Even without formal retaliation, these actions can make Americans hesitant to travel to targeted countries, chilling outbound demand and complicating global travel planning.

ASTA fundamentally believes that the U.S. government has both a right and obligation to keep our country safe, but also that safe and secure travel are foundational to the world and the U.S. travel industry.

ASTA strongly restates this position and encourages policymakers to seek solutions that balance security with the fundamental rewards of travel—understanding, cultural exchange and economic growth. 

The U.S. travel industry contributed $2.6 trillion to the economy last year and supported more than 20 million jobs. It also contributed more than $585 billion in tax revenue. As of May, before the latest round of tariffs and travel bans, Trump’s actions were estimated to cost $13 billion in lost receipts from international visitors.

Travel Advisors Signal Growing Concern Amid Shifting International Travel Landscape    

Meanwhile, ASTA released findings from its June 2025 follow-up survey of U.S. travel advisors, highlighting a noticeable shift in sentiment and business strategies compared to similar data gathered in March 2025. The surveys explored the impact of recent federal executive actions, travel bans and tariffs on the travel industry.

“Our members expressed their views plainly in our most recent national survey,” said Zane Kerby, ASTA President and CEO. “They are seeing hesitation in their clients, cancellations in their bookings and fear in their conversations. They are shouldering the burden of misinformation and working overtime to educate and protect the travelers who count on them most. For some, business is still thriving. For others, survival demands a pivot toward new markets, safer regions, more flexible pricing and above all, clear-eyed strategy.”

The full results of the survey are proprietary and an ASTA Premium Member benefit along with an accompanying white paper compiled by ASTA staff. The efforts are intended to help guide industry leaders during this time of uncertainty.

“In the travel industry, uncertainty is poison,” Kerby said. “We know that when consumers feel unsure about the state of the economy, about global conflict, about whether they’ll be welcome at their destination—they pause. They wait. Sometimes, they cancel their travel plans altogether. In that moment, our members who are the backbone of the travel economy pay the price.”

  • Survey results show a moderate but clear downward shift in consumer demand between March and June. While the proportion of agencies reporting a significant drop in demand held steady, those noting a slight decrease rose from 32.5% to 38.8%. This reflects a broadening impact across consumer segments.
    • The perception of policy-driven disruption also intensified. In June, more advisors pointed to both tariffs (27.9%) and travel bans (12.4%) as key factors affecting their business, up from 23.1% and 8.3%, respectively, in March.
    • Postponements of international travel climbed to nearly 59% in June, up from 49% in March. While outright cancellations saw a slight decrease, this shift suggests that while travelers haven’t given up on international trips entirely, they’re increasingly opting to wait and see.
    • International leisure travel remains the hardest hit segment of advisor business, with 69.2% of advisors citing it as the most affected category—up a striking 9.2 percentage points from March.

Respondents across both surveys voiced concerns over economic instability, misinformation and fears related to international safety and immigration policy. However, tone and urgency shifted notably from March to June. Many advisors are “anxiously reactive,” noting the mounting sense of burnout, client frustration and realignment of business models.

Themes in commentary included concerns about international perception of U.S. travelers, client hesitations rooted in political rhetoric and economic headwinds impacting discretionary spending.

“Looking ahead to the rest of 2025, travel interest is still high, but so are the potential risks and roadblocks,” said Michael Schottey, ASTA Vice President of Membership, Marketing and Communications. “Understanding what’s changing and how agencies are responding is key. ASTA is here to support that process and ensure the travel advisor community stays informed, prepared and connected.”

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Federal Government Shutdown Would Cost U.S. Travel Economy $140 Million Per Day

Six in 10 Americans would cancel or avoid trips by air in the event of a government shutdown

National Parks like the Grand Canyon would be forced to close if Republicans force a federal government shutdown by failing to pass budget authorization. The USTA estimates the shutdown will cost the $1.2 trillion travel industry which employs 10 million people –one of the largest contributors to GDP and employers –  $140 million a day © Karen Rubin/goingplacesfarandnear.com

WASHINGTON – A federal government shutdown is estimated to cost the U.S. travel economy as much as $140 million a day, according to new analysis for the U.S. Travel Association—underscoring the dire consequences of Congress failing to pass a short-term extension by September 30. 

“Each day that passes will cost the travel economy $140 million, an unacceptable prospect that Congress must avoid before the clock runs out and the damages mount,” said U.S. Travel Association President and CEO Geoff Freeman. “The federal government is already failing the traveler—a shutdown would be further proof of Washington’s inability to find reasonable solutions to problems that affect Americans nationwide.”

Other government-related travel issues—such as lengthy visitor visa interview wait times and passport and Global Entry processing delays—further constrain travel growth and spending.

SURVEY: AMERICANS WILL CANCEL OR AVOID AIR TRAVEL IN FACE OF SHUTDOWN 

During a government shutdown, the U.S. air travel system is hampered by more flight delays, longer screening lines and setbacks in air travel modernization.

A new survey from Ipsos and U.S. Travel further underscores these steep negative consequences: Six in 10 Americans (60%) would cancel or avoid trips by air in the event of a shutdown. 

Further, a large majority of Americans—regardless of political party—are not in favor of a government shutdown, especially from a travel perspective. More than eight in 10 of all Americans agree government shutdowns hurt the economy (81%), inconvenience air travelers (86%), impact businesses that depend on air travelers (83%) as well as tourist attractions like national parks, museums and local businesses (83%).

CONGRESS MUST PASS SHORT-TERM FAA EXTENSION 

Coinciding with the federal budget deadline, the Federal Aviation Administration’s (FAA) authorization is set to expire on September 30. Congress has yet to pass a full FAA reauthorization bill, so they must pass a temporary extension of FAA programs. Inaction on an FAA renewal bill would further compound challenges for travelers. 

U.S. Travel Association is calling on Congress to pass a short-term extension by September 30 and continues to call on the Senate to act quickly on a long-term FAA reauthorization bill. 

“This completely avoidable situation threatens livelihoods and jobs across the U.S. economy,” said Freeman. “Ultimately, travelers, businesses and workers will pay the price if lawmakers fail to enact a stop-gap funding bill.”

The U.S. travel industry, on the rebound after the crushing pandemic, generates $1.9 trillion in economic output, accounts for 2.9% of U.S. GDP, and employs 15 million people.  

View U.S. Travel’s federal government shutdown fact sheet.

U.S. Travel Association is the national, non-profit organization representing the $1.2 trillion travel industry, an essential contributor to our nation’s economy and success. U.S. Travel produces programs and insights and advocates for policies to increase travel to and within the United States. Visit ustravel.org for information and recovery-related data.