New data from the US International Trade Administration reveals that Australian visitors to the United States dropped by 7% in March compared to the same period last year. This marks the sharpest decline in Australian visitors since March 2021, during the peak of the COVID-19 pandemic. Overall, overseas arrivals to the US decreased by 11.6%.
Tourism Economics, which had originally forecasted an 8.8% growth in tourist numbers for this year, has now revised its outlook. The organization predicts a 5.1% decline, which includes a loss of US$6.4 billion (around AU$10 billion) in spending at US destinations and US$2.5 billion in transportation-related spending.
The data, which tracks visitors staying for one night or more, also shows significant drops in visitor numbers from other countries. The decrease has been linked to various factors, including the “Trump Slump” caused by tariffs imposed and later paused by the US administration. Countries such as Germany, Denmark, Finland, Portugal, Canada, and the UK have also issued travel warnings for the US. In February, Canada saw a more than 20% drop in visitors to the US.
Bloomberg reports that some European airlines, including Air France and KLM, have reduced airfares to the US in an effort to fill seats on flights this year.
The decline in Australian visitors coincides with a weaker Australian dollar, making overseas travel more expensive. Additionally, the rising cost of living in Australia has put further pressure on travel plans.
Despite some reports of travelers being stopped at the US border, Australians generally experience smoother entry processes due to the ESTA (Electronic System for Travel Authorization), which helps determine eligibility for travel under the US Visa Waiver Program. Travelers are advised to complete the ESTA application as early as possible.
Dean Long, Chief Executive of the Australian Travel Industry Association, highlighted that many travelers are still being denied boarding at major ports due to incomplete or outdated ESTA applications. He also recommended that travelers maintain political neutrality when visiting the US, especially if they plan to attend public demonstrations or express views on US politics.
“Remember, you are traveling on a visa,” Long said. “Stay neutral, and you will have a great time in the US.”
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