Sunday, June 1, 2025

As tourism to the United States plunges from key markets in the Americas and Europe—including Canada, Brazil, Mexico, the UK, France, and Germany—due to a mix of diplomatic tensions, immigration crackdowns, and rising trade disputes, the US travel sector is urgently pivoting toward Asia. With visitor numbers falling and airlines slashing routes, industry leaders are rebooting global strategies through new airline alliances and deeper commercial ties across India, Vietnam, Thailand, and the Philippines. This eastward shift is not just a reaction to geopolitical fallout—it’s a calculated move to tap into Asia’s booming outbound travel market and stabilize an industry grappling with boycott pressure and fading demand from its longtime Western strongholds.

Facing a deepening slump in arrivals from key Western countries, the US travel sector is shifting its global focus toward Asia, rolling out new airline alliances and trade partnerships aimed at tapping the region’s fast-expanding tourism base. The shift comes as mounting political tensions, trade disputes, and stricter immigration policies have triggered a sharp fall in travel to the United States from nations across Europe and the Americas—including Canada, Brazil, Mexico, the UK, France, and Germany.

This pivot eastward marks the most dramatic recalibration in US international tourism strategy since the post-pandemic recovery began. As traditional tourist flows dry up, airlines, tourism boards, and hospitality companies are increasingly betting on Asian markets such as India, Vietnam, Thailand, the Philippines, Malaysia, and Indonesia to reignite growth.

New data from U.S. Travel and government sources highlights the growing problem. In , fell by , while compared to the same period last year. Canadian travelers are voicing increasing dissatisfaction with heightened entry scrutiny, political rhetoric, and changing visa policies. Advance bookings for summer 2025 are down more than from 2024.

The situation is even more acute in and , where diplomatic friction and tightening U.S. immigration regulations have chilled travel demand. Airlines such as Delta, United, and American have already cut back routes linking key Latin American cities to U.S. hubs, citing underperformance and political sensitivity.

Meanwhile, European markets are showing similar distress. In , . Countries like the —once pillars of transatlantic tourism—are now reporting reduced bookings and outbound travel warnings. European media has increasingly framed travel to the U.S. as “unwelcoming” amid cultural and policy clashes.

Tour operators in Germany and France have cut capacity, while several major European airlines are reducing flight frequencies to U.S. cities for the upcoming winter schedule. A spokesperson for a leading German carrier noted that “American destinations have become harder to sell due to customer anxiety over treatment and perception.”

Amid the fallout from declining arrivals across the West, Asia has emerged as the most viable and dynamic opportunity for U.S. travel recovery—and .

Leading this shift is , India’s largest airline by passenger volume, which is now pivoting from its traditional low-cost, regional strategy to a full-fledged international expansion. In late 2024, IndiGo entered into a landmark , a move designed to strengthen transatlantic travel between India and the U.S. through seamless one-stop connections via Europe.

This alliance enables Indian travelers to access key U.S. destinations—such as —through major European hubs like Paris, Amsterdam, and London. In return, American travelers gain access to over in IndiGo’s network, including major economic centers like Mumbai, Delhi, Bengaluru, and Hyderabad, as well as emerging destinations such as Pune and Kochi.

While IndiGo currently does not operate direct long-haul flights to the U.S., the airline is laying the groundwork to do so. It has ordered a fleet of , powered by , specifically for future nonstop service between India and cities in Europe and North America. This move is part of a broader effort to compete head-to-head with major global carriers and to tap into India’s booming outbound travel market—especially business travelers, students, and the vast Indian diaspora in North America.

Backed by strong financial performance and growing passenger demand, IndiGo’s transformation is reshaping how Indian travelers access the United States—while also giving U.S. carriers a much-needed growth opportunity in a market that’s still surging, even as the West pulls back.

Driving the urgency behind this pivot are looming tariff threats that further jeopardize U.S. relations with some of its largest outbound markets. The Trump administration’s announcement of a 10% tariff on select Vietnamese exports starting April 2, 2025, followed by a potential 46% reciprocal tariff on Vietnamese goods from July 9, has sparked economic anxiety on both sides.

According to Vietnamese officials, such tariffs will weaken competitiveness, shrink profit margins, and cause ripple effects across U.S. agrifood imports and outbound travel. Dr. Nguyen Do Anh Tuan of Vietnam’s Ministry of Agriculture and Environment warned that “raising food prices in the U.S. will hit average-income American households while disrupting shared supply chains.”

This geopolitical turbulence underscores why the U.S. is accelerating tourism and trade ties with Asian partners. The travel sector sees this moment not only as a survival pivot but also as a long-term bet on demographic trends and global economic power shifts.

Major U.S. airlines are already re-routing capacity and expanding codeshare agreements across Asia. Delta’s new partnership with IndiGo provides access to more than 80 Indian cities, many of which are underserved by direct U.S. connections. United and American Airlines are exploring similar expansions with Southeast Asian carriers, leveraging Singapore, Tokyo, and Seoul as future transit points.

U.S. tourism boards are also launching Asia-focused campaigns. Visit California, Brand USA, and NYC & Company are rolling out targeted promotions in Bangkok, Mumbai, Hanoi, and Manila to capture emerging outbound demand.

In parallel, hospitality giants like Marriott and Hilton are ramping up their digital marketing in Asian languages and offering Asia-specialized concierge services in New York, Los Angeles, and Orlando.

As traditional transatlantic and inter-American travel corridors erode under political and economic pressure, the U.S. travel industry is undergoing a historic reorientation toward Asia. What began as a tactical response to boycotts, trade barriers, and falling visitor numbers is now taking shape as a broader strategic reboot.

With fresh alliances, rising interest from Asia-Pacific travelers, and deepening commercial ties, the future of U.S. tourism may well lie across the Pacific.