Surprise shift in Aussies visiting the US

News.com.au

3 days ago

There's been a surprising spike in Aussies heading to the US after many were deterred by President Donald Trump's strict border stance and other controversial government policies.
According to new data released by the Australian Travel Industry Association (ATIA), travel from Australia to the US increased by 4.8 per cent year-on-year and was up 8 per cent in May 2025 compared to May 2024.
Figures from the Australian Bureau of Statistics (ABS) were also up in various categories including travelling on a holiday (up 12 per cent compared with last year), visiting friends or relatives (up 15 per cent) or for business (up 8 per cent).
It shows a solid improvement compared to April where there was a 6.2 per cent decline.
US inbound travel to Australia, however, slipped by 3.7 per cent in May and remained flat year-on-year with a modest 0.6 per cent rise.
'The USA remains popular with outbound travellers, but the muted inbound response highlights challenges in achieving a balanced two-way tourism recovery,' ATIA director of compliance and membership, Nina Hedges said.
Destinations Aussies are travelling to over the US
The US continues to take a back seat to destinations like Bali, Japan and Vietnam, which lead the way as Australia's favourite overseas locations.
According to recent ATIA figures, for the year ending May 2025, outbound travel surged by 12.5 per cent to 12.21 million trips, driven by a strong appetite for travel across Asia.
Standout growth included Indonesia (Bali) up 16.3 per cent, Japan, up 32.4 per cent, Vietnam, up 25.8 per cent and China, up 26.9 per cent.
'Asia continues to shine as the preferred playground for Australian travellers, with Bali, Tokyo and Ho Chi Minh City topping itineraries for millions,' Ms Hedges said.
Japan specifically continues to see a growth in visitor numbers thanks to expanded flight options and the region's strength with the AUD, allowing it to stretch further for accommodation, dining and shopping.
'Australia's love affair with America could fade'
Flight Centre chief executive and founder Graham Turner told news.com.au that in the first three months of 2025, leisure bookings to the US from Australia dropped about 12 to 15 per cent compared to last year, while business travel remained 'on par'.
But he anticipated the decline to 'accelerate' for both leisure and business travel across April, May and June.
June figures are yet to be released.
Meanwhile, Sarah Megginson, a personal finance expert at Finder, previously said perceptions of hostility and the current political climate 'could see Australia's love affair with America fade'.
She warned Australians to check their travel insurance policies carefully before going to the US as many insurers would not provide cover if you are denied entry at the border.
There's been reported cases of tourists being denied entry on arrival and at times, strip searched and thrown in prison.
It comes as the US maintains strict immigration rules with significant emphasis on border security and entry eligibility.
'With tensions rising on American soil, Australians are rethinking holidays to the US at the moment,' Ms Megginson told news.com.au in June.
'There's growing sentiment among Australians that the potential issues that could arise when visiting the US are beginning to outweigh the appeal of visiting some of our favourite cities.
'My husband recently got back from a week in Los Angeles, and he noticed a huge shift from previous visits: he was questioned in detail about all aspects of his trip and why he was travelling alone.
'It was a really hostile welcome, and if travellers feel they're being treated like suspects at the border, they'll simply take their travel dollars elsewhere.'
Meanwhile, according to Finder survey results, it appears older Australians are less likely to be deterred by what is happening politically in the US, with this age group actually travelling to the States more on Intrepid trips this year than they did last year.
Leigh Barnes, who is the company's managing director of the Americas, told news.com.au his team had increased their focus on domestic travel within the US, promoting the right products at the right time, and increasing their brand presence.
Canadians visiting the US plummets
Other visitors from other countries aren't so enthusiastic about the US with Canada –
the country's biggest market for international visitors – having plummeted more than 14 per cent, according to the US International Trade Administration, with almost a million fewer Canadians so far in 2025 compared to last year.
Visitors from other countries, such as China, South Korea and Germany, have also declined.
The drop in Canadian figures come as then-Canadian Prime Minister Justin Trudeau told Canadians not to spend holiday dollars in the US after Mr Trump's talks about tariffs and referring to Canada as 'the 51st state' in February.
He repeated that call to action until he left office in April.
Forbes reported that three-quarters of Canadians who had previously planned a trip to the US say the tariff announcements influenced their plans.
Over half (56 per cent) of those who had been planning to visit the US have since decided to travel elsewhere, according to a survey by Leger Marketing of over 1,500 Canadian adults fielded mid-May.
Tourism Economics, which forecasts foreign traveller arrivals in the states, said the US is looking at a significant nine per cent drop in international arrivals for 2025, and a drop of $US8.5 billion – $A13 billion (-4.7 per cent) in international visitor spending compared to last year.
The travel data company's May report cited factors contributing to the negative outlook include Mr Trump's administration posturing and policy announcements, such as 'Liberation Day' tariffs across longstanding trade partners.