The once-glamorous American holiday seems to be losing its shine for many Australians, with new data revealing a significant shift in our travel habits.
The United States (US), long a favourite destination for Australian adventurers, is now being left off the itinerary as more people opt to spend their hard-earned dollars elsewhere.
But what’s behind this change, and where are we heading instead? Let’s unpack the latest trends, their reasons, and what it means for your next big trip.
According to the latest figures from the Australian Travel Industry Association, outbound travel from Australia to the US dropped by 6.2 per cent in April compared to the same month last year.
This is despite overall overseas travel by Australians increasing by 8.3 per cent. That’s a pretty stark contrast, and it’s not just a blip—travel industry insiders are calling it a ‘noticeable softening’ in our enthusiasm for the US.
A recent Finder survey supports this, with 40 per cent of respondents saying they’ve either cancelled US travel plans or wouldn’t consider visiting due to stricter immigration vetting.
Millennials (born between 1981 and 1996) and Gen Z (born between 1997 and 2012) are leading the charge, but even older Australians are starting to think twice.
So, what’s causing this sudden cold shoulder? The answer is a mix of politics, policy, and personal experience.
The US has ramped up its border security, with stories circulating of tourists being denied entry, subjected to invasive searches, or even spending a night in federal prison.
These aren’t just urban legends—there are real cases, like that of former New South Wales police officer Nikki Saroukos, who was detained and deported despite having a valid Electronic System for Travel Authorisation (ESTA).
The Trump administration’s tough stance on immigration and trade, along with high-profile protests and political unrest (especially in cities like Los Angeles), have made the US feel less welcoming and, for some, less safe.
Many Australians also report feeling like suspects rather than tourists at US borders.
As Sarah Megginson from Finder puts it, ‘If travellers feel they’re being treated like suspects at the border, they’ll simply take their travel dollars elsewhere.’
The impact on the travel industry
The ripple effects are being felt across the travel sector. Flight Centre, one of Australia’s biggest travel agencies, has revised its profit forecasts downward, citing US travel policies as a ‘significant’ factor.
Graham Turner, Flight Centre chief executive and founder, noted that leisure bookings to the US have dropped by 12 to 15 per cent in the first quarter of this year alone, and he expects the decline to accelerate.
Another major player, Intrepid Travel, has seen a 13 per cent drop in US sales to Australian and New Zealand travellers.
Meanwhile, destinations like South America are booming, suggesting Australians are still keen to explore, just not in the US.
Interestingly, the data shows that older Australians are less likely to be deterred by the political climate.
Intrepid Travel reports that this age group travels more to the US than last year.
Perhaps it’s a case of ‘seen it all before’, or maybe the lure of Route 66 and the Grand Canyon is too strong to resist.
What happens if you’re denied entry?
One of the most alarming aspects of the new US travel environment is what happens if you’re denied entry.
US Customs and Border Protection has broad powers to detain and deport travellers—even those with valid visas or ESTA approvals.
In places like Hawaii, where there’s no dedicated immigration facility, denied travellers can end up in federal prison alongside people accused of serious crimes.
In other cities, you might be detained or stuck in ‘secondary inspection’ for hours (or even overnight) until the next flight home.
And don’t think Australians are exempt. Immigration lawyers warn that Australians are just as likely as anyone else to face intense scrutiny, including searches of emails, texts, and social media accounts.
With the US off the table for many, where are Australians spending their travel dollars? South America is gaining popularity, with its vibrant cultures, stunning landscapes, and (for now) less complicated entry requirements.
Europe, Southeast Asia, and even domestic travel within Australia also benefit from the US downturn.
Have you changed your travel plans because of what’s happening in the US? Or have you discovered a new favourite destination you’d recommend to fellow YourLifeChoices readers? We’d love to hear your stories and tips—share your thoughts in the comments below!
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Some of my best travel experiences have been in the US. So have some of my worst.
Treatment at the US border has rarely been friendly. Now they’ve added Trump. He won votes by convincing dumb Americans that all foreigners were threats in one form or another, and that he would do something about it.
Not going back.
Not just tourists but even many business people are cancelling travel to America for the same reasons.
You didn’t mention the consequences of being deported from America. It carries consequences world wide as many countries ask on electronic arrival platforms if you have ever been deported or denied entry to another country. If you’ve been deported by America you must declare this which may deny you entry into another country. It’s also on your record for life.
Went to Hawaii in 2014 and loved it. But I will not consider going back there nor to any other part of the US until the orange felon is well and truly gone and the USA is more welcoming.
I have been there, work related, and will NEVER go back again !!!!
The people that I worked with were extremely nice, but some of the rest, especially those in Hospitality were extremely rude, and most demanded “unrealistic tips” for just bringing your meal or drink !!