The number of Indian tourists visiting the US in August decreased by 15%, marking the third consecutive month of decline. Due to tariff disputes and geopolitical tensions, the US tourism industry suffered a loss of approximately $340 million this summer alone. Visa delays and the Trump administration's policies have also exacerbated this decline.
Indian tourists: According to the US National Travel and Tourism Office (NTTO), the number of Indian tourists in August 2025 was 15% lower compared to last year, causing significant losses to the US tourism industry. This marks the third consecutive month of decline, with decreases of 8% in June and 6% in July, respectively. Experts believe that challenges such as tariff disputes between India and the US, oil purchases from Russia, and visa delays have dampened the enthusiasm of Indian travelers.
Three consecutive months of decline
In June 2025, the number of Indian tourists visiting the US decreased by 8%. In July, this decline reached 6%. By August, the drop further intensified to 15%. This trend is a cause for concern for the US tourism industry, as Indian tourists are counted among the highest-spending travelers in the US. This reduction has caused American businesses to suffer losses of approximately $340 million this summer alone.
Last year saw a massive surge
Looking back at 2024, there was a record-breaking increase in the number of tourists traveling from India to the US. Growth of 35% was observed in June 2024, 26% in July, and 9% in August. However, this year's scenario has been entirely different. Experts state that the imposition of a 25% tariff on Indian goods by US President Donald Trump and rising geopolitical tensions between the two countries have altered the preferences of Indian tourists.
Why Indian tourists are important
Indian travelers are extremely crucial for the US tourism sector. In 2024, every Indian traveler visiting the US spent an average of $5,200. This expenditure is almost three times higher than that of the average global tourist. Typically, a foreign tourist spends around $1,802 in the US. Statistics indicate that Indian tourists represent a large and reliable customer segment for the US. India ranks fourth in the number of tourists visiting the US, with Canada, Mexico, and the United Kingdom occupying the top three spots.
To attract Indian travelers, the US had taken several significant steps earlier this year. In January 2025, Brand USA organized its largest ever promotional event in Hyderabad. This event involved 48 US companies and 67 exhibitors. A survey conducted at that time revealed that 86% of Indian travelers stated they planned to visit the US within the next two years. However, recent confrontations and tariff disputes have thwarted these plans.
Rising costs and visa process are also obstacles
The US visa remains a major challenge for Indian tourists. Currently, there is an average wait time of four months for a US tourist visa. In contrast, this wait is only three weeks for the United Kingdom and four to six weeks for Canada. This is why many Indian travelers are prioritizing these countries over the US.
India is among the world's fastest-growing outbound tourism markets. It is estimated that by 2030, Indian travelers will spend $144 billion annually on international trips. In this regard, the Indian market is very significant for the US. However, current visa difficulties and political tensions are pushing Indian travelers away from the US.
Direct impact on the US industry
The decline in the number of Indian travelers has directly impacted the US tourism industry. Earnings of hotel, airline, shopping, and entertainment businesses have been affected. US businesses had hoped for significant revenue from Indian travelers this summer, but three consecutive months of decline have impacted their plans.
