The US economy is set to lose billions of dollars this year amid a steady decline in foreign tourism and an escalating boycott of American products, the Financial Express reported.
Recent policies implemented by the Donald Trump administration and rising geopolitical tensions have also spooked potential visitors.
Data published by the International Trade Administration (ITA) indicates that international travellers spent a record $254 billion in the US last year. The ITA had also projected in early March that the US would welcome 77 million visitors this year.
The number however fell sharply as the Trump-led administration cracked down sharply against migrants, initiated a global trade war and sought to expand the American borders.
By the end of March, the number of non-citizens flying into the US had dropped by nearly 10 per cent when compared to the previous year.
According to a Bloomberg Intelligence analysis, the country now stands to lose around $20bn in retail spending from international tourists.
The publication noted that early signs of a pullback were already visible – with airfares, hotel rates and even car rental costs falling in March.
Economists affiliated with Goldman Sachs and HSBC Holdings have suggested that lower demand, including from foreign travellers, likely played a role.
A worst-case scenario outlined by Goldman Sachs adds that the hit from reduced travel and boycotts could total 0.3pc of gross domestic product – amounting to almost $90bn.
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