Decline in Overseas Visitors to the US Signals Economic Concerns

Decline in Overseas Visitors to the US Signals Economic Concerns

As we mentioned above, the United States has experienced a rapid decline in international arrivals. This reversal can be largely attributed to former President Donald Trump’s hardline immigration approach and the administration’s escalating trade war. In March, the total count of international travelers entering the US was down 11.6% from March 2019. Almost all key markets, including western Europe and Canada, suffered tremendous drops in international travel. This decline not only affects the tourism sector but poses economic risks for various regions dependent on international travel.

The decline in visitors has been most acute among visitors from western Europe, down 17.2%. Other major destinations like Spain and Germany have experienced an even more stunning dropoff, with arrivals down 25% and 28% respectively. The anger directed at Trump’s White House — especially by our northern neighbors — has been a major driver in this recent decline. Many Canadians have expressed dissatisfaction with the former president’s rhetoric and policies, resulting in a sharp decline in cross-border travel. In fact, car visits from Canada to the US dropped by 32% just in March.

The impact of Trump’s trade war only makes matters worse. It risks driving up costs for all goods and businesses, including services that could be used by visitors, harming disposable income for future travelers. Adding to the damaging impacts of declining international tourism, this is sure to discourage domestic trips too.

Tourism heavy-hitters like Texas and Florida are particularly at risk. In addition, Texas is hugely supported economically by European and Latin American markets. At the same time, Florida continues to attract a remarkable amount of travelers from Canada and Europe. The lack of clarity in terms of medium- and long-term travel behavior has created anxiety in the industry. In Los Angeles, workers in the tourism and hospitality sector constitute more than half a million employees. These workers are now bearing the brunt of lost guests during the pandemic.

Tourism and foot traffic has evaporated. By mid-April, ticket sales for other big draws, such as the Statue of Liberty, were down 6%. His department reported that hotel bookings in New York City are down 20% from last year. This dramatic decline foreshadows a huge environmental and economic risk for one of our nation’s busiest tourist destinations.

Travel advisories coming from the UK, Germany and other European countries have exacerbated the anxiety among would-be travelers. This uncertainty is causing many to think twice before planning a trip to the US. These newly revised guidelines are in response to mounting pressure from safety and accessibility advocates that only serve to deter overseas travel even more.

Airlines are feeling the impact as well. Vancouver Sun Last month, major Canadian airlines were forced to reduce service on many US routes, including Las Vegas, New York City and Los Angeles. This decision is a response to decreased demand. This drastic decrease in flight inventory only adds to the challenge the entire tourism industry is experiencing.

Now, amid growing visibility of US border detentions and deportations, a truly terrible deterrent has emerged — for would-be travelers to the United States from abroad. Repression of the very actions you might participate in while there has markedly increased since mid-March, surely discouraging future visitors even more. That sense of an unwelcoming atmosphere would drive a lot of people – particularly international travelers – to decide there are other places they want to go on vacation.

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