Home » Greece » Greece Travel News » US Joins Greece, Turkey, Spain, France, Croatia Facing Disastrous Losses as Wildfires, Trade War and Inflation Crushing Travel Industry but Eyeing on Shoulder and Autumn Seasons
Published on
September 5, 2025
By: Tuhin Sarkar
The global tourism industry is facing catastrophic losses as major destinations like the U.S., Greece, Turkey, Spain, France, and Croatia struggle with the combined impacts of wildfires, inflation, and trade wars. In 2025, these countries have experienced a dramatic downturn in tourism, with economic pressures pushing travel costs to new highs and natural disasters forcing vacation plans to shift. Wildfires in Greece, Spain, and California have led to the evacuation of thousands of tourists, further destabilizing local economies that rely heavily on tourism revenue. Meanwhile, inflation has made travel significantly more expensive, discouraging international visitors from booking trips to these once-popular destinations.
Along with these challenges, the U.S. finds itself in a particularly precarious position due to ongoing trade wars, which have disrupted international travel flows and led to a decline in arrivals from major markets. However, despite these setbacks, there is still hope for recovery as countries turn their focus to the upcoming shoulder and autumn seasons. With cooler weather and fewer crowds, tourists may be drawn back to these destinations for more affordable and relaxed vacations. While the current situation is grim, many nations are optimistic that the coming months will bring a welcome respite to the struggling tourism sector.
The Impact of Wildfires, Earthquakes, Inflation, Trade Wars, and Policies on Tourism in Europe and the United States
Tourism has always been a vital part of the economy in both Europe and the United States. However, in recent years, several challenges such as natural disasters, economic strain, and political shifts have significantly affected the travel and tourism industries in these regions. In this article, we will explore how wildfires, earthquakes, inflation, trade wars, and government policies have impacted tourism, focusing on Europe and the U.S., providing an in-depth analysis of the consequences.
The Devastating Impact of Wildfires on TourismWildfires in Europe
Europe has experienced some of the worst wildfires in recent years, particularly in southern countries like Greece, Italy, and Spain. In the summer of 2025, wildfires ravaged parts of the Mediterranean, leading to evacuations, destruction of properties, and a sharp decline in tourism. For example, in Greece, islands like Zakynthos and Cephalonia were heavily affected, and many tourists opted to cancel their trips or choose alternative destinations with cooler climates. The wildfires not only disrupted holidays but also caused a severe economic loss in the tourism sector. Areas that were once bustling with visitors became deserted, and many hotels, restaurants, and tourist attractions had to shut down temporarily.
Similarly, Spain and Italy, two of the most popular tourist destinations in Europe, have faced significant challenges. Wildfires, compounded by extreme heatwaves, led to travel warnings and restrictions in some areas. According to reports from news agencies, the Mediterranean region, known for its beautiful beaches and historical sites, has seen a dramatic shift in tourist preferences. Tourists now tend to travel during shoulder seasons or prefer destinations less vulnerable to the impacts of climate change, such as the northern parts of Europe.
Wildfires in the United States
In the United States, wildfires have also had a major impact on tourism, particularly in states like California and Hawaii. In 2023, Hawaii’s tourism sector faced a massive setback due to the Lahaina wildfire on Maui, one of the most destructive events in recent history. The local economy, which heavily depends on tourism, was devastated as many visitors canceled their trips to the island. Hawaii’s tourism authorities urged people to avoid the area to allow recovery efforts to take place. According to data, there was a 20% decrease in tourism to Maui, resulting in millions of dollars in losses. Similarly, California, famous for its beaches, national parks, and attractions like Yosemite, faced severe disruptions due to wildfires, affecting tourist visits to popular destinations.
These natural disasters led to significant delays in travel, restrictions on flights, and heightened security risks, causing uncertainty among travelers and deterring potential visitors.
Earthquakes and Their Effect on TourismEarthquake Impact in Europe
Earthquakes have been another major factor affecting tourism in both Europe and the U.S. In 2023, Turkey and Morocco were both struck by devastating earthquakes that left lasting damage on their tourism industries. Turkey, known for its ancient cities and stunning coastlines, was deeply affected by the 2023 earthquake. Popular destinations like Istanbul and Cappadocia, known for their historical significance, saw a dramatic decrease in international tourists. Although recovery efforts are underway, the aftershock on the country’s tourism reputation remains significant. According to experts, it will take years for some areas to fully recover.
Similarly, Morocco’s tourism sector took a hit after its 2023 earthquake, although it managed a relatively faster recovery compared to Turkey. Despite the damage in certain regions, the country’s main tourist spots, such as Marrakech and Casablanca, continue to attract visitors, with recovery efforts boosting confidence in the country’s safety.
Earthquake Effects in the United States
In the U.S., while earthquakes are less frequent compared to Europe, the state of California faces occasional seismic activity. The impact of earthquakes on tourism in the U.S. is usually more localized, as major cities like Los Angeles and San Francisco are less prone to severe quakes. However, areas close to fault lines, such as Napa Valley and parts of Southern California, have seen drops in tourist numbers during and after earthquake events. Tourists often worry about safety, and this leads to cancellations and a shift in travel preferences.
The Strain of Inflation on Travel CostsInflation in Europe
Inflation has become a significant problem for many European countries, especially since 2023. The rising cost of living, including soaring prices for goods and services, has translated into higher travel costs. Tourists are finding it more expensive to travel across Europe, especially in popular destinations like France, Italy, and Spain. The cost of accommodation, dining, transportation, and activities has risen sharply. For example, the price of hotel rooms in major European cities has increased by over 15% in the last year. As a result, some tourists are choosing to stay at home or look for more affordable vacation options closer to their homes. This economic pressure has led to a decrease in the length of holidays, as people cut back on their spending.
Some destinations, however, are still thriving due to their relatively lower costs. Southern Europe, including Greece and Portugal, has seen an increase in tourism due to its affordability compared to traditional hotspots like Paris or Rome. Additionally, countries in Eastern Europe, such as Croatia and Bulgaria, have experienced a surge in visitors as travelers seek out budget-friendly destinations.
Inflation in the United States
In the United States, inflation has made international travel more expensive for both American travelers and visitors from abroad. The cost of flights, accommodation, and travel packages has increased significantly. For instance, a flight from Europe to the U.S. now costs nearly 30% more than it did before inflation surged. This has led to a decrease in the number of international visitors coming to the U.S. as tourists seek more affordable destinations elsewhere. Furthermore, American tourists are also choosing to stay closer to home, as domestic travel costs have risen dramatically. The higher cost of travel and the economic strain on personal finances have dampened demand for both international and domestic vacations.
Trade Wars and Their Effect on TourismThe U.S.-China Trade War
One of the most significant political events that has affected tourism in recent years is the trade war between the United States and China. The imposition of tariffs on Chinese goods led to economic instability, which in turn impacted the global tourism industry. Chinese tourists, who are some of the biggest spenders in international tourism, reduced their travel to the U.S. due to rising costs and tensions between the two countries. In 2025, the U.S. government reported a 10% drop in Chinese visitors, a substantial decline for the American tourism industry. Furthermore, many Chinese tourists opted to visit countries that were not as affected by the trade war, such as Japan and South Korea.
In Europe, the trade war between the U.S. and China indirectly affected the tourism industry. As China imposed tariffs on goods from the U.S., American companies faced increased prices on goods and services. This led to a reduction in American spending abroad, including tourism expenditures. Some European countries that relied heavily on American tourists saw a decline in visitation.
The Effects of Trump’s Policies on U.S. Tourism
The policies of former President Donald Trump, particularly his “America First” approach, had a profound impact on international tourism. Many foreign visitors found it more difficult to travel to the U.S. due to stricter visa requirements and a perceived lack of hospitality towards tourists. The implementation of the travel ban on several Muslim-majority countries, combined with more rigorous immigration policies, discouraged travelers from visiting the U.S. In 2024, a report by the National Travel and Tourism Office revealed that international arrivals in the U.S. dropped by 8%, with many potential visitors opting for countries with more welcoming policies.
Government Policies and Tourism: The Case of Visa Fees
In 2025, the U.S. introduced a controversial visa integrity fee of $250 for non-immigrant tourists. This move has led to concerns that international tourism could decline even further. Countries like India, China, and Mexico, which are major sources of visitors to the U.S., may see a reduction in the number of people willing to pay extra fees to travel. This policy is likely to result in a further slowdown in U.S. tourism, as travelers from countries outside the Visa Waiver Program face added financial burdens.
Similarly, European countries are also adjusting their visa policies. The introduction of the European Travel Information and Authorization System (ETIAS) is expected to affect tourism, particularly from non-EU countries. While it is designed to enhance security, the added paperwork and processing time may discourage some tourists from visiting the continent.
A Shifting Landscape for Tourism
The tourism industry in Europe and the United States is facing significant challenges, driven by a combination of natural disasters, economic pressures, and political shifts. Wildfires and earthquakes have disrupted travel plans, while inflation has made it more expensive to visit some of the world’s most popular destinations. Trade wars and government policies, particularly in the U.S., have led to a decline in international tourism, with travelers opting for other destinations that offer more favorable conditions.
As the world continues to grapple with these challenges, the future of tourism remains uncertain. However, there is hope for recovery, especially if governments and businesses work together to mitigate the effects of these crises. By focusing on sustainability, offering more affordable options, and making travel easier and safer, Europe and the United States can rebuild their tourism industries and continue to welcome visitors from around the globe.
With the right strategies in place, the tourism sector can recover, adapt, and thrive once again in a post-pandemic, post-crisis world.
