The United States' tourism industry is facing a significant challenge as Australian travelers are increasingly turning their backs on the country. This shift in travel preferences is a cause for concern, especially with the proposed changes to the ESTA application, which could further deter visitors.
The latest travel data from the Australian Bureau of Statistics reveals a 5.5% decline in outbound travel to the US for the year ending March 2026. This decline is unique among the top 10 most visited countries by Australians, with all other destinations experiencing growth.
Dean Long, CEO of the Australian Travel Industry Association (ATIA), attributes this shift to a "seismic change" in travel preferences, with Australians opting for Asian destinations over America. Long highlights the impressive growth in travel to Japan, Vietnam, and China, emphasizing that Australians are actively choosing these destinations over the US.
One of the key factors contributing to this shift is the high cost of traveling to the US compared to shorter haul destinations in Asia. Additionally, controversial trade and entry policies, including enhanced vetting and denial of entry for some travelers, have created a sense of unease among potential visitors.
The World Travel & Tourism Council (WTTC) reports that globally, international travel increased in 2025, but the US saw a 5.5% drop in foreign visitor numbers and a 4.6% decline in international visitor spending. This decline is particularly concerning as Asia-Pacific is the fastest-growing region, while North America lags behind.
WTTC President Gloria Guevara has urged the US to take action to maintain its position as the largest travel and tourism market. She suggests investing in promoting the country's attractiveness, changing perceptions to position the US as a welcoming destination, and encouraging stopovers and new experiences.
However, the proposed changes to the ESTA application, which would require travelers to disclose five years of social media history, have been met with resistance from the tourism industry. The US Travel Association describes the potential impact of this policy as "chilling," warning that it could drive away millions of travelers and their spending.
Despite these concerns, Brand USA, which promotes international tourism to the US, emphasizes the importance of the Australian and New Zealand markets. Chris Heywood, Brand USA's chief communications officer, assures travelers that the proposed ESTA changes are under review and not yet in effect.
Heywood highlights upcoming events like the 2026 FIFA World Cup, America's 250th birthday, and the Route 66 Centennial as opportunities to attract visitors. He encourages travelers to approach their visit with common sense and be prepared for processing by US Customs and Border Protection upon arrival.
Los Angeles, a popular gateway city for Australian visitors, is also working to maintain its appeal. Adam Burke, CEO of the Los Angeles Tourism and Convention Board, emphasizes the city's diversity and inclusivity, aiming to reassure visitors that they are welcome.
Burke acknowledges the challenges posed by the declining sentiment toward the US but remains optimistic due to new world-class attractions and global sporting events coming to Los Angeles. He notes the increasing demand for luxury experiences among Australian travelers and hopes that the upcoming NFL game in Australia will inspire more visits to LA.
The "City of Angels" is also looking to capitalize on the growing trend of Australians cruising overseas. With a major cruise expansion underway at the Port of Los Angeles, the city aims to position itself as the "West-Coast Gateway for Cruising."
In conclusion, while the US tourism industry faces challenges, there are efforts to address the decline in Australian visitors. The proposed ESTA changes and the overall perception of the US as a travel destination are key factors that need to be carefully managed to ensure the country's continued appeal to international travelers.
