Wednesday, 11 July 2018

US TOURISM SECTOR ON DECLINE FOLLOWING TRUMPS TRAVEL BAN

The supreme court has ruled to uphold president Trump’s travel ban.
So, what does this mean for the future of the travel industry?
It cannot be denied that the cumulative impact of the travel bans over the past 18 months has been felt by our industry.
The initial reaction alone to the first travel ban issued by the administration was swift and strong – more than $185 million in business travel bookings were lost in one week.
As the second and then third executive orders on travel were narrowed, it lessened the impact, confusion and outcries, but the effect on business travel and the United States economy remains.
In a poll of GBTA members last week, nearly one-quarter (23 per cent) of US travel buyers reported that the administration’s executive orders on travel have driven at least some level of reduction in their company’s travel.
Additionally, 37 per cent expect some level of reduction going forward because of the new ruling to uphold the ban.
More than half (52 per cent) of US travel buyers also reported concerns of increased traveller harassment in general due to this administration’s policies and messaging on travel and immigration, while 40 per cent worry about a reduction in business travel to the United States.
When asked about the lasting impact, US buyers cited the potential for countries to respond, making travel more difficult for US travellers (64 per cent), complications in travel to the United States (56 per cent), increased threats against US travellers abroad (51 per cent) and cancelled projects/contracts between US and foreign companies (36 per cent).
Perhaps most strikingly, 62 per cent of US buyers believe this administration is having a negative impact on business travel.
For every one per cent decrease in business travel spending, the US economy loses 74,000 jobs, $5.5 billion in GDP, $3.3 billion in wages and $1.3 billion in taxes.

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