Los Angeles Faces Tourism Trouble as Trade Policies Take Toll

News Summary

Los Angeles is experiencing a decline in tourism, with empty streets and businesses struggling to attract visitors. Factors such as global tariffs, fears of deportation, and shifting political sentiments particularly impact Canadian tourists. The city, known for its vibrant attractions, faces a projected decrease in visitor spending. Local businesses, reliant on tourism, are feeling the strain as forecasts are revised downwards, raising concerns for the future of L.A.’s tourism industry.

Los Angeles Faces Tourism Trouble as Trade Policies Take Toll

Los Angeles, the city known for its sunshine and glitz, is facing some tough times as tourism struggles to bounce back. The once-crowded Hollywood Boulevard, usually buzzing this time of year, now sees just a trickle of visitors. Open-air tour buses and vans, which are often filled with excited tourists, are now largely empty, reflecting a decline in the tourism sector.

Foot Traffic Woes for Local Businesses

At La La Land, a souvenir shop that typically thrives on foot traffic, the manager reports ongoing challenges as people are still hesitant to explore. The pandemic has left a lasting mark, and the struggles to attract visitors are evident everywhere. The tourism and hospitality sector in L.A. employs around 510,000 people and supports over 1,000 local businesses, making these declines particularly concerning.

Tariffs Making It Tougher

Further complicating things, global tariffs applied during the previous administration are putting even more strain on the industry. Vendors are expected to raise prices as much as 30% on various goods, making travel to L.A. even less affordable. This is especially concerning for international visitors, who often bring their families and help boost the economy. Those from Canada and Mexico tend to stay longer and spend more while enjoying the local attractions.

Impact on Canadian Tourism

Funny enough, Canadian tourists account for about 770,000 guest nights in Los Angeles annually. Yet, due to tariffs and political tensions, there’s been a noticeable decrease in their numbers. Reports suggest some Canadians are opting to boycott American products and canceling their travel plans altogether. This shift leaves many local hotels and businesses feeling uneasy.

The Fallout of Political Decisions

Turning up the heat, threats aimed at Canada have added another layer of concern. The fallout has resulted in a major hotel chain even pausing marketing for all U.S. properties, thanks to negative sentiments swirling on social media. Local hotels are scrambling to maintain prices, all while sensing that conference bookings are at risk, too. Economic pressures seem to loom large, affecting travel expenses across the board.

Deportation Fears Adding to the Stress

Adding to the already shaky tourism landscape are the fears surrounding potential deportations. Many hotel workers, employed under precarious conditions, feel the impact, causing tourists to second-guess their decisions to travel to the U.S. California, known as the No. 1 travel destination in the country with international visitors having spent $26.5 billion last year, is seeing projections for visitor spending in 2025 revised down significantly.

Predictions of Decline

Currently, forecasts now sit at $160 billion instead of $166 billion, indicating a slowdown that locals surely do not want to see. The U.S. is bracing for an expected 5% decrease in travel overall, with the sharpest declines—around 15%—coming from Canadian tourists. This trust erosion is contributing to the downturn, causing a significant decline in bookings for various local businesses.

The Bottom Line

Moses Marjanian, who owns Hollywood City Tours, mentioned that his business is down more than 30% as fewer tourists show interest in visiting. The recent detention of a Canadian worker by immigration only serves to underline worries, making families and individuals feel uneasy about traveling to America.

A Ripple Effect Felt Beyond L.A.

This trend isn’t limited to just Los Angeles. Neighboring areas like Palm Springs, which have often welcomed Canadian visitors, are also feeling the heat. The sense of uncertainty around travel, combined with economic apprehension and the fear of deportation, continues to shake the tourism industry.

As the city holds onto hope for a brighter tourism future, only time will tell how much länger these effects will linger. For now, Los Angeles is facing a challenging road ahead.

Deeper Dive: News & Info About This Topic

• Los Angeles Times
• CBS News Los Angeles
• Yicai Global
• Politico
• Financial Express
• Wikipedia: Tariff
• Google Search: California tourism 2025
• Google Scholar: Impact of tariffs on tourism
• Encyclopedia Britannica: Tourism
• Google News: California tourism tariffs