April 15, 2017

A story in the Washington Post details the devastating effects on tourism from Trump's proposed travel ban. An Industry analytics firm pegs the losses at $7.4bil in 2017, and $10.8bil next year. Demand is down across the board, including from Canada, usually a reliable source of tourism but not anymore. The lone exception? Travel from Russia, where inquiries are up 60%.

Source: Washington Post

The cancellations came quickly and in rapid succession. Within days of President Trump’s first executive order restricting travelers from seven Muslim-majority countries, a number of European travel groups pulled their plans, amounting to a loss of 2,000 overnight stays for Hostelling International USA.

The ban would complicate travel for citizens of the countries cited — among them Iran, Syria and Libya. But Canadians and Europeans and others were dropping their plans, too. As group organizers put it, people suddenly had an unsettling sense that the United States wasn’t as welcoming a place as it once was.

The result was a wave of withdrawals. “Getting those cancellations all at once, that was startling,” said Russ Hedge, chief executive of HIU, which oversees 52 hostels across the country. “We’ve never seen something like that.”
...
Demand for flights to the United States has fallen in nearly every country since January, ­according to Hopper, a travel-booking app that analyzes more than 10 billion daily airfare price quotes to derive its data. Searches for U.S. flights from China and Iraq have dropped 40 percent since Trump’s inauguration, while demand in Ireland and New Zealand is down about 35 percent. (One exception: Russia, where searches for flights to the United States have surged 60 percent since January.)

The result could be an estimated 4.3 million fewer people coming to the United States this year, resulting in $7.4 billion in lost revenue, according to Tourism Economics, a Philadelphia-based analytics firm. Next year, the fallout is expected to be even larger, with 6.3 million fewer tourists and $10.8 billion in losses. Miami is expected to be hit hardest, followed by San Francisco and New York, the firm said.       

The administration’s travel ban deals a blow to an industry that has only recently recovered from a $600 billion loss following the Sept. 11, 2001, attacks.

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