The cost of isolation
Trump-era policies are leading to real, measurable setbacks: fewer travelers, lost billions in revenue, and a ripple effect on new hotel developments
Since revisiting the topic in April, Hospitality‑On observes that Trump's restrictive entry policies and escalating global tensions have taken a toll on U.S. hotels. Three key developments—stricter travel bans, a steep drop in international visitors, and sluggish hotel market growth—are shaping a challenging environment for the sector today.
Key Takeaways
- Tightened border control: Trump’s new travel ban affects nationals from 12 countries, including Afghanistan, Iran, and Congo. This comes ahead of major events like the 2026 FIFA World Cup, further limiting entry options.
- Decline in international demand: France alone has seen an 8.3% drop in visitors this year, with April down 12%—confirmation of already reported softening interest. Even flagship markets like New York are expected to host 400,000 fewer tourists, dropping forecasts from 67.6 M to 64.1 M visitors.
- Economic drag on hotels: The World Travel & Tourism Council projects a $12.5 billion loss in foreign tourism revenue. Crucially, the U.S. is the only country in its panel forecast to see a decline in international visitor spending this year.
- Long-term investment risk: While many June hotel openings were planned pre-COVID, future investment could suffer—Trump’s immigration and visa policies may cool investor sentiment even after his tenure.
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