‘I don’t trust America.’ Trump’s tariffs, detentions take a toll on local tourism
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- Among the casualties in the ongoing trade hostilities is tourism.
- State and local tourism officials are increasingly worried about the potential adverse effects on travel to Los Angeles and California.
On Tuesday, a trickle of visitors traversed the sidewalks of star-studded Hollywood Boulevard, which is usually bustling this time of year with families and students on spring break trips. Parked open-air tour buses and vans were largely empty.
But Jose Ayon, manager at La La Land, a souvenir and gift shop, was not surprised. Foot traffic has struggled to rebound after the pandemic shutdowns and now global tariffs imposed by the Trump administration could make matters worse.
That morning, Ayon said, several vendors that supply mugs, chocolates, plates, magnets and other knickknacks to the store told him that they would hike prices as much as 30%.
“It’s pretty concerning,” said Ayon, who has worked at the store for 10 years. “Everyone in the back is panicking.”
In the face of market turmoil, Trump on Wednesday paused some of the tariffs he had imposed on most countries, while escalating duties on China.
But the twists and turns in the trade war have shaken Wall Street and deepened anxieties among business owners in Los Angeles and nationwide who fear a rise in prices and a disruption in their supply chains.
The fallout for tourism to L.A.
Among the casualties in the ongoing trade hostilities is tourism. Amid news of visa cancellations and deportations, state and local tourism officials are increasingly worried about the potential adverse effects on travel to Los Angeles and California.
“California’s message to all visitors remains the same: You’re welcomed and respected,” Caroline Beteta, president of Visit California, the state’s marketing agency, said in a statement.
Jackie Filla, president of the Hotel Assn. of Los Angeles, said local hoteliers are scrambling to keep foreign visitors coming.
“The way we are perceived globally, is we are blowing up not just our economy but everyone else’s economy,” Filla said. “People don’t think it’s good, they don’t think it’s fair, so why would they go to America?”
Instead of cowing Canadians, President Trump’s threats to annex their country have unleashed a wave of patriotic fervor unmatched in living memory.
The worries are rippling across the local tourism and hospitality industry that employs about 510,000 Angelenos and supports more than 1,000 local businesses, according to the Los Angeles Tourism and Convention Board.
International visitors are crucial to the regional industry because they tend to stay longer and spend more, tourism officials say. Canada and Mexico, which send the most visitors, were hit early on with steep tariffs — some of which remain in place, even after Trump announced Wednesday that he would pause some global tariffs for 90 days.
A Canadian backlash
Canadians, furious over Trump threats to annex their country, are boycotting American products and canceling travel plans south of the border, including scrapping visits to popular winter destinations such as Palm Springs.
That’s especially concerning because Canadians account for a large share of bookings — 770,000 guest nights annually in Los Angeles, Filla said.
The recent two-week detention of a Canadian on a work visa by immigration authorities did not help matters, Filla said. At least one major hotel brand has paused marketing for all of its U.S. properties in reaction to angry comments on its social media accounts, she said.
“How do we attract people from other countries when the tide of media they’re getting is, ‘You may be snatched off the street?’” Filla said. “But we need them to come here, it’s very vital to our economy.”
Aside from fewer visitors, local hotels are bracing for price increases on cleaning products, technical equipment for elevators, golf simulators, spas and other amenities, food imports and a host of other goods because of tariffs, she said.
They are also worried about businesses canceling conferences and cutting travel expenses, and families forgoing vacations because of heightening economic pressures. Hotels that employ unauthorized immigrants also have been rattled by deportation threats.
Los Angeles-area hotel workers urge employers to protect them from Trump deportation threats.
Adam Burke, president and chief executive of the Los Angeles Tourism and Convention Board, said his organization is “concerned about any factors that could negatively impact perceptions of the U.S. as a preferred travel destination.”
California is the No. 1 travel destination in the U.S., with international visitors spending $26.5 billion last year, a 17.5% increase over 2023, according to Visit California.
That growth is slowing, however. In March, the organization revised its projections for 2025 visitor spending in California to $160 billion, down from $166 billion it had originally. That represents 2.3% annual growth, down from an earlier projection of 6.2%.
The U.S. as a whole is expected to be even more hard hit. Tourism Economics, a Philadelphia-based travel data company, expects international travel to the U.S. to decrease 5% this year, with a 15% decline in travel from Canada.
One bright spot: California is seeing less negative sentiment and a proportionally smaller decline in consideration for travel, according to Visit California, citing data from market research firm YouGov.
Along Hollywood Boulevard on Tuesday afternoon, Canadian tourist Harpreet Kaur, 24, perused shops with her cousins and uncle in tow. Kaur, who lives in Nova Scotia, said Trump’s threats to turn the nation’s northern neighbor into the “51st state” have made people angry.
Kaur was on a two-week trip to see L.A. and visit cousins in Bakersfield.
“I’m not sure what’s going to happen in the future,” she said. “I wanted to see them before anything drastic happens. I don’t trust America, as a tourist.”
Business has been slow all year at Hollywood City Tours, owner Moses Marjanian said. First it was the fires, which caused tourists to cancel their trips because they thought the inferno had reached the Hollywood sign and other major attractions.
“We had a very slow January and February,” he said. “But it’s been carrying on all the way until now. I’m guessing it’s because of the tariffs. Our business is probably down over 30%.”
Palm Springs is bracing for an economic hit. Canadian snowbirds are canceling vacations and selling property because of Trump.
Marjanian started his company 11 years ago, weathering the pandemic, Hollywood strikes, inflation and other business challenges.
But this is “the worst it’s been,” he said.“We’re giving our tour guides a lot more days off because we’re running less tour buses and they’re not going out full,” he said.
Marjanian believes the decline in bookings is also a result of deportation threats.
“There’s a lot of Hispanic customer base that we have that aren’t out and visiting as much as before,” he said. “Because of the uncertainties they’re facing, they’re probably not spending as much money anymore as they figure out what the future brings.”
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