A 2016 report by the U.S. Travel Association predicted that China is projected to be the U.S.' second-largest overseas inbound market by 2020. However, experts are not optimistic about that happening under the current strained ties between the two countries.

A report published by ForwardKeys, a Spain-based travel intelligence provider, shows that bookings by Chinese tourists to the United States were down 8.4% for the year to August compared to the same period last year.

“Looking at the year to date, we see a setback in Chinese tourism arrivals of just under 5%,” said Olivier Jager, CEO and co-founder of ForwardKeys.

"If that continues to the end of this year, we estimate that the cost to the U.S. economy will be worth of half a billion in 2018," he warned.

It estimates that between August and December 2018, Chinese bookings for overseas travel will grow by 5.5%, while that to the United States will be down by 9.6% on an annual basis.