US is projected to lose over $12 billion in travel spending this year, WTTCI
The US is projected to lose over $12 billion in traveling spending this year, according to a new
report from the The World Travel & Tourism Council (WTTC) released this week
, citing a 22.5% decrease from peak spending, falling to $169 billion from $181 billion last year as many countries issue travel advisories for the US
New Hampshire resident Fabian Schmidt was returning home from visiting his family in Europe when he was stopped at Boston Logan International Airport (BOS) by United States Customs and Border Protection after showing his recently renewed green card. Originally from Germany, he had been living in the US for 18 years, but the 34-year-old was detained for nearly two months after being told he was a flight risk.
Finally released last week, he detailed the 'dehumanizing' experience, which included being strip-searched and locked in a secluded cell, to
GBH News this week
. 'I love this country and the people in it so much—but I'll tell you, the system is broken,' he told the public media outlet.
Schmidt is just one of several American visa holders and permanent legal residents who have been stopped at the border returning from international travel, including a
Brown University kidney transplant doctor,
who has a work visa, but was deported to Lebanon.
Foreign nationals have also recently run into roadblocks trying to visit the country legally, including a researcher who French officials say was
denied entry
after his
phone was searched
and immigration officers found messages that were critical of the Trump administration.
Following these incidents,
Canada
and several
European countries
have issued travel advisories for the US. While most of the government warnings don't specify why they were added, the timing points to the the Trump administration's executive orders regarding immigration and the tightening of border policies.
'The whole purpose is to stop illegal immigration,'
Larry Yu
, professor of hospitality management at The George Washington University's School of Business tells
Condé Nast
Traveler
. 'But then the executive orders are also tied to other issues like transgender identification, so it actually adds quite a bit of confusion, uncertainty, and concern for the US travel industry.'
Many of the European countries that have issued US travel warnings have flagged the
White House's executive order
that states 'it is the policy of the United States to recognize two sexes, male and female,' potentially causing issues for transgender travelers with self-identified or
'X' gender markers on their passports
.
The recent uptick in travel warnings is already having a major impact on US tourism, according to Yu, as several of the advisories were issued by countries that are top drivers of inbound travel to the US, including Canada, the UK, and
Germany
.
'The image the US has always projected is that we're welcoming and diverse,' Yu says, adding that recent events are making people think about how they see the US.
WTTC
warns
'This is a wake-up call for the U.S. government. The world's biggest Travel & Tourism economy is heading in the wrong direction, not because of a lack of demand, but because of a failure to act,'
WTTC's president and CEO Julia Simpson said in a statement
. 'While other nations are rolling out the welcome mat, the U.S. government is putting up the 'closed' sign.'
In fact new international arrivals data for the month of March already show a sharp decline. Visitation from the UK is down 15% compared to last year, whereas Germany has dipped 22% and South Korea 15%.
But the most significant impact is being seen from Canada, as more Canadians are
boycotting travel to America
since March when then-Canadian Prime Minister Justin Trudeau told citizens to prioritize domestic travel ahead of peak summer travel season. The
US Travel Association
has warned that US states visited by Canadians—Florida, California, Nevada, New York, and Texas—could see declines in retail and hospitality revenue as a result.
The latest data from Statistics Canada
for April shows that the number of Canadians returning from US trips decreased by plane (-19.9%) and car (-35.2%) arrivals, compared to the same month last year, marking the fourth consecutive month of year-over-year dips.
Airlines have even started cutting flight capacity to the US, with Canadian carriers
Air Canada
and
WestJet
cutting routes and using smaller aircrafts. US-based airlines have also been
hesitant to release this year's projections
, with flight cuts being a major factor.
International travel advisories for the US are not entirely new; however, most posted in recent years have been in regard to gun violence. Uruguay and Japan both issued alerts to its citizens in wake of
the Dayton, Ohio, shooting in 2019
. Japan's Ministry of Foreign Affairs
currently lists gun crime
as a 'major public safety concern in the US,' including safety advice and statistics on the most common locations and timings of shootings.
Japan
also warns about the high number of hate crimes in the US based on race, sexual orientation, and religion.
Australia-based small-group adventure travel company
Intrepid Travel
has seen a 'clear decline in demand for travel to the US,' according to its
CEO James Thornton
, who says they've seen a 40% drop in year-to-year numbers.
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