The U.S. economy faces an expected decline of $8.5 billion in international tourism during this year based on Oxford Economics research. The research firm predicts a 9% decline in foreign arrivals and a 5% decrease in visitor spending, driven by negative perceptions of U.S. trade and immigration policy.
The World Travel & Tourism Council predicts a more severe impact which would result in $12.5 billion less in visitor spending by 2025 based on current trends. Air travel bookings from Europe and Canada have decreased by more than 10% and 30% respectively.
According to Aran Ryan who analyzes tourism the way people choose their travel destinations depends on their perceptions. “Policies and posturing matter.”
The tourism industry faces severe challenges because international visitors form a significant portion of their visitor base in destinations like New York, Las Vegas and Orlando. The growing economic risks have prompted industry groups to demand federal government action for easing entry restrictions and rebuilding America’s reputation as a welcoming destination.
The decline in international tourism demonstrates how protectionist policies together with strained international relations create economic dangers for the country. The domestic travel sector remains strong but ongoing overseas visitor decline threatens to create economic impacts throughout hospitality services and retail businesses and local communities across the United States.
