Forbes - How Trump Is Torpedoing Foreign Tourism To The US—Potentially For Years To Come
The Trump administration's aggressive tariff policies and nationalistic rhetoric are deterring international tourists, as evidenced by travel data. Adam Sacks, president of Tourism Economics, highlights that these factors are creating substantial barriers for the US travel industry, setting back international travel by several years. Originally, a 9% growth in international inbound travel was forecasted for 2024, but this has been revised to a 5% decline. This downturn is expected to result in a $64 billion loss for the US economy this year. Inbound travel from Canada and Mexico, which constitutes a significant portion of foreign travel to the US, is particularly affected. Airline bookings from Canada to the US have dropped by 70% compared to the previous year. The US Travel Association warns that a 10% reduction in Canadian travel could lead to a $2.1 billion loss in spending and threaten 14,000 jobs in the hospitality sector. Preliminary data from Statistics Canada shows a 23% decrease in cross-border car travel from Canada to the US.
Key Points:
- Trump's tariffs and rhetoric are deterring international tourists, impacting the US travel industry.
- Tourism Economics revised its forecast from 9% growth to a 5% decline in international travel to the US.
- The US economy is expected to lose $64 billion due to decreased travel.
- Canadian travel to the US has dropped significantly, with airline bookings down 70%.
- A 10% reduction in Canadian travel could result in a $2.1 billion loss and 14,000 job losses in hospitality.
Details:
1. 📉 Decline in International Tourism
- International tourism is declining partly due to the Trump administration's tariff wars and escalating rhetoric, which create a negative perception deterring potential international tourists.
- In addition to tariff wars, global health issues and economic downturns are also significant factors contributing to the decline in tourism.
- Statistics show a 15% decrease in international tourist arrivals in regions heavily impacted by trade tensions and health advisories.
- Economic downturns in key tourist markets have led to reduced disposable income, impacting travel decisions and reducing global tourism figures.
2. ⚠️ Barriers Affecting US Travel Industry
- President Trump's tariffs and public rhetoric are significantly impacting the US travel industry, as they create uncertainty and deter potential travelers.
- Incidents of foreign tourists with legal visas being detained have led to negative viral headlines, exacerbating the perception of the US as an unwelcoming destination.
- These factors contribute to a decline in international travel interest to the US, as reflected in recent travel data showing decreased bookings and visitor numbers.
3. 🔍 Tourism Economics' Insight
- The US Travel industry is facing significant hurdles that could set back international travel by several years, according to Adam Sack, president of Tourism Economics. These challenges may include economic factors, policy changes, and global health concerns, although specific examples and data are needed to fully understand these impacts.
4. 📊 Economic Forecasts and Impacts
- Oxford Economics has revised its forecast for international inbound travel to the US, initially predicting a 9% growth but now projecting a 5% year-over-year decline, indicating a significant shift in travel expectations.
- Total US Travel spending, including both domestic and inbound, is forecasted to be 3.7% lower than the original prediction, leading to an estimated $64 billion loss for the US economy this year.
- The decline in travel and spending is attributed to ongoing global economic uncertainties and potential travel restrictions, which impact consumer confidence and international travel plans.
- This $64 billion shortfall could have cascading effects on the US economy, particularly affecting the hospitality and retail sectors that heavily rely on tourism-related revenue.
- Strategies to mitigate these impacts could include enhancing domestic tourism campaigns and offering incentives for international travelers.
5. 🇨🇦🇲🇽 Canadian and Mexican Travel Trends
5.1. Canadian Travel Trends
5.2. Mexican Travel Trends
6. 📰 Further Reading and References
- Preliminary data from Statistics Canada for February showed a 23% drop in cross-border car travel from Canada to the US, indicating potential impacts on tourism and business travel sectors.
- This significant decrease in travel could reflect broader economic trends or changes in travel regulations.
- For more on this story, read Suzanne Rowan Keller's article linked in the description, which provides an in-depth analysis of the factors contributing to this decline.