Tourism in the Crosshairs: The Global Fallout of Tariffs and the Leadership UN Tourism Must Now Show

We are living in a new global reality. A reality where politics, economics, and personal choices are not separate silos but tightly intertwined. A reality where tariffs may target goods, but their shadow falls over hearts, plans, perceptions, and plane tickets.

As a former Deputy Finance Minister and Minister of Tourism for Greece, I have long witnessed how macroeconomic disruptions ripple through the real economy. Amidst the uncertainty we see around the world, we are seeing this play out again today.

A New Era of Global Retaliation

The escalation of tariffs between the United States and China - now reaching a 125% levy from Beijing and 145% from Washington has injected enormous uncertainty into the travel and tourism ecosystem. China’s Ministry of Finance has declared U.S. goods “no longer viable,” and the reverberations are being felt in unexpected sectors.

Tourism is one of them.

Sentiment across Asia is deteriorating rapidly. GDP forecasts are being redone citing fallout from tariffs and job exposure for millions of workers in export industries.

Delayed Impact, Long Recovery

Tourism is collateral damage. Again! And, global fallout in numbers and behaviour shows that U.S. Inbound Tourism is declining fast.

• 12% drop in total overseas visitors to the U.S. (March 2025 vs. 2024) — the steepest decline since March 2021.
• 17% fall in European visitors overall, with Germany, Ireland, and Norway down 20%+.
• 25% decline in U.S. summer bookings from Europe (Accor).
• 40% cancellation rate among UK, Germany, and France bookings (Omio).
• Canadian Tourism to the U.S. is impacted with 23% drop in road travel; 2.4% drop in air travel.
• Bookings between April–September 2025 are down 70% YoY.
• Delta has pulled its 2025 guidance; stock down 41% YTD

Tourism doesn’t react like the stock market. We’ve seen this before: after 9/11 and during the 2008 global financial crisis. There’s a lag effect as travellers book months in advance. Tour operators, airlines, and hotels plan seasons ahead. But once sentiment shifts, rebuilding trust can take years.

This isn’t just a dip. It’s a warning.

Tourism Diplomacy is No Longer Optional

Tourism is not just transactional. It is emotional, relational, and deeply human. It builds trust. It opens minds. It reinforces diplomacy without speeches.

Tourism is also deeply interconnected. When one market suffers, others feel it. The multiplier effect is real.

As a former Deputy Finance Minister, I understand trade logics. But as a tourism minister, I know perception drives behaviour—and perception is policy. The sector’s long-term health depends on how we manage today’s shocks.

A Time for UN Tourism to Lead

Tourism is not just another industry - it is a geopolitical asset. And yet, too often, we ask for a seat at the table without acting like we are the table. It’s time that changes.

Top 5 Global Policy Actions I will launch in UN Tourism:

1. Shield Tourism from Trade War Retaliation- Tourism must be carved out as a non-retaliatory sector in future trade and diplomatic negotiations.
2. Establish a Global Tourism Resilience Fund - Create a pooled fund to support countries hit by sudden declines due to geopolitical or health shocks.
3. Accelerate Intra-Regional Travel Agreements - Fast-track visa liberalization and infrastructure harmonization within blocs like ASEAN, MERCOSUR, ECOWAS, and the African Union.
4. Invest in Real-Time Sentiment Tracking - Launch systems integrating bookings, flight capacity, traveller reviews, and digital chatter to identify early warning signs of market disruption.
5. Activate Tourism Diplomacy Programs - Launch bilateral travel recovery summits, cultural exchanges, and city diplomacy to repair fractured narratives. Expand cultural exchange, sister city programs, and trust.

Conclusion: A Call to Strategic Maturity

This is a defining inflection point. Tourism can no longer afford to wait, react, or remain on the sidelines. UN Tourism must lead with clarity, speed, and conviction. The time for promotional campaigns and marketing events is over. What we now need is an immediate academic assessment of short- and medium-term impacts, and urgent policy guidance issued by UN Tourism at the highest level.

In a world facing unprecedented volatility, we either continue as a fragmented network of interests, or we rise as a unified strategic force. The choice is ours — but the moment to act is now.