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SACRAMENTO, the United States, July 24 (Xinhua) -- Retailers in major U.S. cities are facing severe losses due to a sharp decline in international tourists, with an estimated 20 billion U.S. dollars in retail sales expected to vanish this year, according to reports by Bloomberg Intelligence and Travel and Tour World published on Thursday.

In key metropolitan hubs such as New York, Los Angeles and Chicago, luxury brands and prominent retail chains are particularly affected, Bloomberg's report said, adding these cities traditionally depend heavily on foreign visitors who, prior to the downturn, spent significantly on apparel, electronics, and luxury goods.

Retail experts attributed the decline to several critical factors.

Economic slowdowns in key source markets had reduced consumer spending power abroad. Additionally, the persistent strength of the U.S. dollar had further dampened foreign travelers' purchasing ability, discouraging shopping during visits, Travel and Tour World noted.

New York City alone anticipated retail losses of approximately 4 billion U.S. dollars, while Los Angeles expected a decrease of around 2 billion dollars, according to Travel and Tour World.

These losses reflected the broader national trend of diminished international travel, which dropped notably from pre-pandemic highs. Industry analysts cited by Bloomberg warned that the trend may extend into 2026 unless global economic conditions improve significantly.

Retail districts, especially those heavily reliant on international tourist traffic, experienced declining foot traffic and weakening sales figures. Shops along iconic avenues such as New York's Fifth Avenue and Chicago's Magnificent Mile have seen the sharpest downturn. Luxury brands in these locations reported drops in sales exceeding 15 percent year-on-year, Bloomberg reported.

The implications extended beyond individual businesses to affect local economies. Reduced sales tax revenues and fewer employment opportunities in retail sectors posed significant challenges for municipal budgets. Consequently, city officials and business leaders expressed growing concerns over the long-term economic impacts, according to Bloomberg.

In response, some retailers are shifting strategies, focusing on domestic customers through promotional campaigns and loyalty programs to stimulate local spending. However, analysts from Bloomberg suggested that these initiatives might not fully offset the loss of international visitor spending.

The retail downturn posed broader economic risks. The World Travel &Tourism Council 2025 Economic Impact Research report, published in May, projects that a 21 billion-dollar reduction in international visitor spending could cost the U.S. economy 230,645 jobs, slash labor income by 13.25 billion dollars, and shave 23.17 billion dollars off GDP.