U.S. cross-border policies and tariff strategies are creating a crisis that threatens North American events

By all outward signs, 2025 should be a boom year for cross-border tourism and international events. But behind the scenes, the North American travel economy is under serious threat—and meeting and event planners need to pay attention.

Last week, the Beyond Borders Tourism Coalition, (BBTC) an alliance of leading U.S. and Canadian tourism organizations, issued a stark warning: rising tariffs, policy unpredictability, and dramatic funding cuts are putting the visitor economy at risk. Their message? The ripple effects of uncertainty are already hitting budgets, bookings, and long-range event planning.

And if left unchecked, those ripples could turn into shockwaves.

A Sudden Slowdown in Cross-Border Travel

According to figures from the BBTC, foreign tourist spending in the U.S. is expected to drop by 11% in 2025—a loss of $18 billion. Canadian tour operators report an even sharper falloff: a more than 70% year-over-year decline in advance bookings between Canada and the U.S.

These are not isolated figures. They're symptoms of a broader fracture in the infrastructure that supports international meetings and incentive travel.

“Rising tariffs and economic headwinds are cutting into consumer purchasing power, reducing demand for U.S. vacations, and forcing our members to reconsider future investment and hiring,” said Terry Dale, President of the U.S. Tour Operators Association. “The ripple effects across our sector are deeply concerning.”

The Fine Print Is Costing Planners More Than Ever

Crossing the border isn’t just about passports and planning anymore—it’s about padding your budget for the growing pile of mandatory fees and charges that now shape the travel experience.

Starting October 1, 2025, nearly all travelers requiring a non‑immigrant U.S. visa—from tourists to students and temporary workers—will be hit with a new $250 Visa Integrity Fee. This surcharge stacks on top of existing visa costs and is only refundable under narrow circumstances.

Only a small group of travelers are exempt: citizens of countries in the Visa Waiver Program (VWP). This U.S. initiative allows citizens from 42 partner nations to visit for up to 90 days without a visa. Participating countries include major allies such as the United Kingdom, Japan, Germany, France, South Korea, Australia, and New Zealand. Canada and Bermuda are also generally exempt.

But the vast majority of travelers from South America and Asia are not so lucky. Countries like Brazil, Argentina, Colombia, Peru, India, China, the Philippines, Indonesia, and Vietnam—key sources of inbound incentive and business travelers—are not part of the VWP and must pay the full slate of fees.

The financial strain doesn’t stop there. The I‑94 arrival/departure record fee has jumped from $6 to $24, and the ESTA fee—used by VWP travelers—has more than doubled to $40. In some cases, travelers may also be required to post refundable visa bonds of up to $15,000, based on country of origin and overstay risk.

For international meetings, events, and incentive planners, the impact is immediate: higher costs for attendees, lower turnout for cross-border programs, and growing hesitation from international partners. What was once a seamless part of global business planning is now becoming an expensive—and politically fraught—exercise in navigation.

The Cultural and Community Cost

Beyond the numbers, travel leaders warn of longer-term losses that hit communities where it hurts: in cultural exchange, youth travel, and Indigenous tourism.

“Student and youth travel is a cornerstone of North America’s visitor economy,” said Carylann Assante, CEO of the Student and Youth Travel Association. “New tariffs and economic instability are making travel unaffordable for many schools and families. Canceled programs and rising costs are cutting off life-changing experiences for our youth.”

Keith Henry, President of the Indigenous Tourism Association of Canada, added: “The recent wave of tariffs and mounting political instability threatens all we have built. Indigenous-owned businesses are being hit disproportionately, putting livelihoods and intergenerational knowledge at risk.”

Industry Calls for Policy Stability and Cross-Border Collaboration

Across the board, Coalition members agree: protectionist policies and uncertainty are undermining North America’s $2.5 trillion travel economy and putting 22 million jobs at risk.

“Without clear, consistent policy, event professionals can’t plan effectively, and destinations can’t invest confidently,” said Catherine Prather, President of the National Tour Association. “We urgently need to restore global confidence that the U.S. remains a safe, welcoming, and inclusive destination.”

Fred Ferguson of the American Bus Association emphasized the stakes for the group travel sector, which generates $90 billion annually: “Motorcoach tourism fuels local economies and enriches communities. It’s essential that policies promote both vibrant international and domestic travel.”

The Big Takeaway

From sourcing international speakers to booking hotels with cross-border supply chains, the planning landscape is shifting underfoot. Staying informed on trade and travel policy—and aligning with partners who advocate for stable cross-border mobility—will be key to managing risk and delivering successful programs.

As Shannon Stowell of the Adventure Travel Trade Association put it: “The greatest challenge is uncertainty—especially around finances, safety, and the potential for sudden policy changes that disrupt travel plans and business confidence.”

Any thoughts, opinions, or news? Please share them with me at vince@meetingsevents.com.

Image generated by AI using OpenAI’s DALL·E