India’s Changing Travel Preferences Threaten U.S. Tourism Industry as China Offers Attractive Visa Solutions

Published on December 26, 2025

International tourism in the United States has seen a significant downturn, particularly from some of its highest-spending visitor segments. As the country grapples with trade tensions and stricter visa policies, it has also seen a marked drop in arrivals from India, its second-largest tourism market. This shift comes at a time when China has relaxed its visa process for Indian nationals, raising concerns for the future of US tourism.

For the first time since the early 2000s, Indian tourist numbers to the U.S. have dropped. In the summer of 2025, there was an 8.1% decrease in Indian visitors compared to the same period in 2024. These statistics reflect a broader trend that has been unfolding since February, when a 1.8% drop in Indian tourist arrivals was recorded. This decline continued, deepening to 3.7% by March.

Simultaneously, India’s neighbor, China, has made significant strides in attracting Indian tourists. After a prolonged diplomatic stand-off, China has eased visa restrictions for Indian nationals, allowing them to apply for a visa online. This simplified process eliminates the need for in-person visits to consular offices, making it easier and more convenient for Indian travelers. As a result, more Indian nationals are opting for travel to China over the U.S.

This shift has significant implications for both countries. While India’s outbound travel market is one of the fastest-growing in the world, with a $21 billion expenditure in 2024 projected to soar past $60 billion by 2033, the U.S. is facing a considerable challenge in maintaining its grip on this lucrative segment. The growing ease of access to China, with its more lenient visa policies, is increasingly making the U.S. a less appealing destination for Indian tourists.

The impact of these changes is already apparent in U.S. tourism data. According to figures from the National Travel and Tourism Office (NTTO), Indian visitors to the U.S. declined by 1.8% in February 2025 compared to the previous year, followed by a 3.7% dip in March. These figures mark a trend of waning interest, particularly as American visa processes remain challenging and costly for international travelers.

India has been a crucial source market for U.S. tourism, contributing significantly to both visitor numbers and revenue. In 2022, Indian tourists spent approximately $13 billion in the U.S. Yet, despite these impressive figures, the U.S. is increasingly losing its allure to Indian travelers. In contrast, China is positioning itself as a more attractive option with streamlined visa processes, improved connectivity, and a growing demand for Indian travelers eager to explore the country’s rich cultural heritage.

The data shows that between 2023 and 2024, Indian tourist arrivals in the U.S. jumped from 1.7 million to 2.2 million. However, the trend is taking a downward turn in 2025, with projections showing a steep drop to only 1 million arrivals by the summer. This marks a worrying trend for U.S. tourism, which had long relied on international visitors from countries like India, China, and others.

India’s shift toward easier visa procedures for travel to China is compounded by broader geopolitical and economic pressures. Tensions between the U.S. and India, heightened by trade disputes and immigration restrictions under the Trump administration, have pushed many Indian tourists to reconsider their travel plans. Additionally, rising visa fees and a crackdown on immigration have further dissuaded travelers from visiting the U.S.

To make matters worse, China has also introduced more competitive measures to attract tourists, particularly from the Indian market. In addition to the relaxed visa policy, direct flights between India and China resumed in October 2025, further improving connectivity. These developments give China a firm grip on the Indian outbound tourism market and position it as a more appealing destination for Indian travelers seeking cultural and economic engagement.

In the U.S., the situation is further exacerbated by the Trump administration’s tightening of immigration policies, including the controversial travel bans and a requirement for visitors to share their social media history from the last five years. These measures have contributed to the perception that the U.S. is less welcoming to international visitors, creating a climate that makes foreign tourists hesitant to visit.

The National Travel and Tourism Strategy, which aims to welcome 90 million international visitors by 2027, faces significant hurdles unless the U.S. government reconsiders its approach to visa processes. Currently, the U.S. maintains one of the most expensive tourist visa systems in the world, with fees reaching up to $442, which has been a deterrent for many international visitors.

In contrast, the Chinese government has rolled out a more inviting tourism strategy. The newly relaxed visa procedures for Indian nationals have been a direct response to the growing demand for travel between the two countries. The simplification of the visa application process is expected to increase the flow of Indian tourists to China, which will continue to benefit from this new policy shift.

The impact on U.S. tourism from these developments cannot be overstated. While the U.S. remains a top destination for many international travelers, the country faces mounting challenges in maintaining its position in the competitive global tourism market. The decline in Indian tourist numbers, coupled with the rise of China as a more accessible destination, signals a significant shift in global travel patterns.

As the U.S. continues to grapple with trade tensions, political changes, and a shrinking tourism market, it must consider re-evaluating its visa policies and international relations if it hopes to remain a leading destination for tourists in the future. The country’s ability to attract and retain high-spending visitors from key markets like India will be crucial in determining the trajectory of its tourism industry in the coming years.

With China capitalizing on the easier visa rules and India’s growing interest in the destination, the U.S. must reconsider its approach to international tourism before the damage to its industry becomes irreparable.