Skip to main content

[Yanolja Research Brief] Vol.6 Trump’s Reciprocal Tariff Policy and Its Implications for Global Tourism

How New U.S. Tariffs Are Transforming Global Tourism

Global tourism is entering a new era. Recent U.S. trade policies are sending shockwaves through economies and reshaping travel patterns worldwide. Here’s a look at the key trends and what they mean for travelers, businesses, and industry leaders.


Global Economic Shifts and Tourism

  • A new 10% universal tariff on all U.S. imports, with even higher rates for certain countries, has triggered immediate market volatility and concerns about rising costs and supply chain disruptions.
  • These changes go beyond goods: the tourism sector-reliant on affordable travel, international cooperation, and positive sentiment-is especially vulnerable.
  • Economists warn of higher consumer prices and a squeeze on household budgets, which could lead to less discretionary spending on travel and leisure.


Impact on the U.S. Travel Market

  • Rising costs for hotels and airlines are expected as tariffs drive up prices for construction materials, furnishings, and imported food products.
  • Hotels face a tough choice between raising prices (risking customer loss) or absorbing costs (hurting profitability), with mid-range hotels feeling the greatest pressure.
  • Airlines anticipate increased maintenance and fleet expenses, leading to possible route reductions and service cutbacks.
  • International visitor numbers to the U.S. are projected to fall, with anti-American sentiment and diplomatic tensions further discouraging travel. Notably, Canadian travelers may decline by 15%, and similar trends are expected from Europe and Asia.
  • The overall result: a potential $64 billion drop in U.S. tourism revenue in 2025.


New Travel Patterns: Regionalization and Slowdown

  • Travelers are increasingly choosing destinations closer to home. Canadians are favoring domestic trips or the Caribbean, while Asian tourists are looking to Japan, South Korea, and Southeast Asia instead of the U.S.
  • European travelers are expected to explore their own continent rather than crossing the Atlantic.
  • The global tourism sector, which thrived on international mobility, is seeing a shift toward regional travel and slower overall growth.
  • Business travel and major events may also see cutbacks, reducing the broader economic impact of tourism.



Want to Learn More?

What challenges and opportunities could South Korea face in this shifting tourism landscape?

and How are industry leaders across the globe responding to these global changes? 


Discover in-depth analysis, actionable insights, and the full story on how these changes may affect your business or travel plans. Visit our official website for the complete report.

Yanolja Research Brief Vol.6

Labels:
Location: Seoul, South Korea

Comments

Post a Comment

Popular posts from this blog

📢Yanolja Research Giveaway🎉

📢Yanolja Research Giveaway🎉 We are Yanolja Research , Korea’s first private research institute dedicated to travel and tourism studies. We publish Insights (monthly) and the Quarterly Trends in Korea’s Lodging Industry , along with occasional Briefs and Research Reports . By following Yanolja Research on social media, you will be among the first to receive notice of new publications, as well as updates when summary posts or video features based on our reports are released. 📅 Event Period September 12, 2025 (Fri) – October 12, 2025 (Sun) KST 🏆 Winner Announcement Late October (winners will be notified individually) 📌 How to Join 1. Follow Yanolja Research across our social media channels  (Instagram, Facebook, LinkedIn, Threads, X, YouTube, Blogger). – The more channels you follow, the greater your chances of winning. 2. Post your quiz answer in the comments of the event post on each platform. 3. Complete the Google Form with the platforms you follow, your account ID, and the...
8 comments
Read more

[Yanolja Research Brief] Vol.5 Korea's Inbound and Outbound Tourism Performance in 2024

Korea’s Tourism Landscape in 2024: Key Highlights 2024 marked a dynamic year for Korea’s tourism industry, with both inbound and outbound travel showing strong signs of recovery. Explore the main trends shaping the sector and discover why now is a pivotal moment for Korea’s travel market. Inbound Tourism: Visitor Numbers Surge, Revenue Lags Visitor Recovery Nears Pre-Pandemic Levels Over 16.3 million foreign tourists visited Korea in 2024, reaching 93.5% of the 2019 record and rising 48.4% from the previous year. Asian travelers made up nearly 79% of all visitors, though full recovery from this region remains just out of reach. Diverse Growth Across Regions Arrivals from the Americas, Europe, Africa, and Oceania exceeded 2019 levels, while the Middle East saw a minor dip. Tourism Revenue Stagnates Despite the influx of visitors, tourism income reached only $16.45 billion-just 80% of the 2019 figure. Visitors are Flooding into Korea—But Where’s the Money? Outbound Travel: Koreans Travel...
Post a Comment
Read more

[Yanolja Research Q2 2025 Quarterly Trends in the Korea Lodging Industry] Luxury Hotels Down, Motels on the Rise?

Luxury Slips, Budget Stays Bounce Back According to Yanolja Research’s Q2 2025 Korea Lodging Industry Report, the domestic lodging market demonstrated a pronounced polarization. While the luxury segment recorded sharp declines , budget-friendly accommodations maintained resilience and even expanded their presence . So, what’s behind this contrast? Let’s take a closer look. Sharp Declines in Luxury Hotels and Resorts The luxury sector experienced significant contraction. In Q2 2025, five-star hotels reported a 23% decline in RevPAR (Revenue per Available Room) compared with Q2 2024, while resorts recorded a 19% drop. This downturn reflects two key dynamics: prolonged economic stagnation that has weakened consumer sentiment, and the resurgence of outbound travel , which has redirected demand away from domestic luxury accommodations. In other words, consumers who had previously spent on high-end domestic stays have shifted their spending overseas. Value Strikes Back: Motels and Pensions ...
Post a Comment
Read more