Hotels & Motels NAICS 721110

Feb 6, 2026 - Trump Policies Take Toll on International Travel in 2025

• International travel to the US fell in 2025 as global tourism grew, making it the only major destination seeing a decline in international visitors, according to the US Travel Association. Inbound travel dropped about 4% year over year - 11 million fewer visitors and a $50 billion hit to airlines, hotels, restaurants and attractions - while worldwide tourism rose about 4% (per the International Travel Association). The slide reflects a sharp shift in US entry policy under Trump, including expanded travel bans, widespread visa suspensions, and broader social-media vetting, measures that industry groups say have made the US feel less welcoming to foreign travelers. Those policies, coupled with confrontational rhetoric toward allies, have dampened demand from key markets of Canada, Europe and parts of the Middle East. Travel leaders warn the resulting slump could have lasting consequences for US competitiveness, even with potential tailwinds from events like the 2026 FIFA World Cup.
• New York City Mayor Zohran Mamdani signed a final rule through the city’s Department of Consumer and Worker Protection that bans hotels from charging hidden mandatory “junk fees” - such as destination or resort fees - and from imposing unexpected credit card holds or deposits that aren’t clearly disclosed before booking. The policy classifies those practices as deceptive under city law, and even applies to hotels outside New York City if they advertise to city residents. Effective February 21st, the rule goes further than the Federal Trade Commission’s 2025 junk-fee rule, which focuses on price transparency rather than prohibiting specific fees. For the broader US hotel industry, New York’s approach raises the stakes: other cities or states could adopt similar bans, potentially forcing hotels nationwide to rethink fee-based revenue streams, standardize pricing, and compete more directly on room rates rather than add-ons.

• The US hotel industry started 2026 on a weak note, with key performance metrics slipping compared with the same week last year, according to real estate data firm CoStar. National occupancy fell to 48.1%, down 2.4 points year over year, while average daily rate (ADR) edged lower to $142.85. Revenue per available room (RevPAR) declined 3.3% to $68.69, reflecting soft demand and pricing pressure. Several major markets posted notable declines, led by Tampa, where occupancy, ADR and RevPAR all dropped sharply, and San Diego, which also saw year-over-year losses. St. Louis stood out as an exception, recording strong gains across all three metrics as the US Figure Skating Championships boosted demand. Overall, 16 of the top 25 US hotel markets reported RevPAR declines, an early-year challenge for the hospitality sector amid a chaotic political environment, even as major events continue to create pockets of optimism.
• A proposed US rule would require foreign visitors from the Visa Waiver Program - which consists of about 40 mainly European countries - to provide social media handles from the past five years when applying for travel authorization, along with email addresses from the past 10 years for the applicant and all immediate family, detailed personal data, and even DNA. The US Travel Association warns this could deter travel and have a “chilling effect” on tourism and business visits, potentially harming an industry still recovering from the backlash to Trump’s immigration policies. The requirement stems from a broader administration effort to strengthen vetting of foreign entrants. (Immigrant and non-immigrant visa applicants already face social media disclosure.) Critics say the timing is poor with the US preparing to co-host the 2026 World Cup, which is expected to draw many international visitors.