Asians are avoiding trips to the U.S. this year — for a variety of reasons

A CNBC Travel survey indicates a significant decline in the U.S.'s appeal as a travel destination, with nearly 80% of Southeast Asian travelers expressing reduced interest primarily due to concerns over discrimination, gun violence, and Trump administration policies, rather than cost. While some markets like Vietnam and the Philippines show increased interest, overall global travel interest to the U.S. has fallen 13% according to corroborating YouGov data, signaling a broader shift in international tourism patterns that could impact hospitality and related sectors.

Analysis

Recent survey data indicates a material erosion in the appeal of the United States as a travel destination for key international markets, posing a potential headwind for the U.S. hospitality and travel sectors. A CNBC Travel survey of 6,000 travelers from Southeast Asia found nearly 80% view the U.S. as less appealing, with non-economic factors such as potential discrimination, gun violence, and Trump administration policies cited as primary concerns over cost. This sentiment is corroborated by a YouGov report showing a 13% decline in overall global travel interest and falling net 'impression' scores in Europe, MENA, Canada, and Mexico. The trend is not uniform; interest from Vietnam and the Philippines has increased by 57% and 49% respectively, potentially driven by strong diaspora connections. Conversely, interest from Singapore has plummeted, with 55% of respondents now less interested. Online sentiment data from Sprout Social reinforces this regional divergence, showing 45% of Canadian mentions were negative, while 96% of mentions from India were positive or neutral. The introduction of specific trade tariffs, such as the 46% tariff initially announced for Vietnam, is also explicitly cited as a negative factor, particularly for younger travelers.

Key Decisions for Investors

• Investors with exposure to U.S. tourism-dependent sectors like hospitality, airlines, and retail should monitor inbound international arrivals data for signs of weakening demand, particularly from Canada and Europe.
• Consider the geographic diversification of revenue for companies in the travel sector, as those with a broader international customer base may be better insulated from sentiment declines in specific regions like Southeast Asia and Western Europe.
• Geopolitical risk is a key variable; monitor U.S. political rhetoric and trade policy developments, as the report directly links declining travel interest to administration policies and tariff announcements.
• While the overall trend is negative, look for nuanced opportunities in companies that cater to resilient or growing inbound markets such as India, Vietnam, and the Philippines, which could buck the broader trend.