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Time of India
12 hours ago
- Business
- Time of India
US braces for a $12.5-billion chill in summer travel as foreigners give America a miss
It was supposed to be a big year for travel in the United States , with airlines and hotel companies projecting strong growth. But with the summer travel season about to start, it has instead become a year of uncertainty. Canadian travel to the United States is down for a third consecutive month, falling 15.2% compared with April of last year. Airlines have reduced fares in response to softening demand. U.S.-based hotel chains Marriott, Hyatt and Hilton say they are experiencing slower growth, and all three have lowered their revenue outlook. Airbnb expects growth to ease in the second quarter, and Expedia downgraded its expectations for booking and revenue growth. "Unpopular policy decisions, whether it be related to Ukraine or trade, are having an effect and the brand of the country has taken a beating," said Adam Sacks, president of research firm Tourism Economics, which projects a 9.4% decline in international arrivals to the United States for 2025. At the start of the year, the company was expecting a 9% increase. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Moose Approaches Girl At Bus Stop In Barisal - Watch What Happens Happy in Shape Undo An earlier New York Times analysis found that international travel to the United States had declined only modestly through April, with the exception of arrivals by Canadians, which were down sharply. (Join our ETNRI WhatsApp channel for all the latest updates) But, as that article noted, travel analysts were uncertain whether the numbers would hold up and "the situation could worsen if economies are further weakened by the trade war or if anti-American sentiment rises." Live Events Increasingly, it seems, political and economic confusion created by the Trump administration's " America First" agenda is causing both domestic and international tourists to reconsider their plans. Foreigners are canceling trips in response to threats of steep tariffs on U.S. trade partners, polarizing rhetoric and an immigration crackdown that has resulted in tourists being detained at the U.S. border. American travelers are cutting back over fears of a recession and job insecurity. "U.S. demand was soft, driven by declining consumer sentiment, and we saw pressure on key inbound U.S. corridors," Expedia CEO Ariane Gorin told investors this month. Bank of America's credit card and debit card spending also shows softening in travel spending across all income groups. With fewer Americans planning expensive trips abroad, domestic travel, which is generally cheaper, is up 3 percentage points. According to the bank's Summer Travel and Entertainment Outlook report published last week, 70% of Americans planning trips are opting for domestic travel. On the international front, arrivals from most of the 20 top tourist-generating countries such as Britain and Germany actually rebounded after a steep drop in March, with a 0.4% year-over-year increase for April, according to U.S. Department of Commerce data. The decline in March can be attributed, in part, to the fact that the Easter holidays, which are particularly popular in Western Europe, fell later this year. Still, the number of visitors from France, normally a reliable source of tourists, remained lower than expected in April, with arrivals down 12.2%. (The data did not include arrivals from Canada, the top source of travelers to the United States.) Sacks anticipates more pain. "We believe that pure leisure travel will be the most reactive, and we're not quite in the peak window yet," he said. "I expect as we get into May, June and July, the effects will be more pronounced." Monique Dubas, 35, an engineer from Paris, canceled a June trip to New York to show solidarity with a French scientist who was denied entry into the United States in March after immigration officers searched his phone and found messages deemed to be critical of President Donald Trump, according to French authorities. (The Department of Homeland Security later said the decision had nothing to do with Trump. ) "This is wrong and should not be accepted," Dubas said. After paying expensive cancellation fees, she changed her destination to Mexico. "I love America, but there are many more inviting places to go right now," she said. Canadian travelers are, by far, the biggest loss. Arrivals have declined significantly for a third consecutive month as Canadians continue to boycott the United States in reaction to tariffs and Trump's comments on annexation. In April, the number of Canadians returning from the United States by car fell 35.2% compared with the same month in 2024, and returning Canadian airline passengers fell by 19.9%, according to the latest data published by the government office Statistics Canada. A $12.5 Billion Loss The tourism industry projects a drop in international visitors that will cost the United States $12.5 billion in travel spending this year, falling to less than $169 billion from $181 billion in 2024. That's a 22.5% decline from the prepandemic peak reached in 2019 and sets the United States apart as the only country among the 184 analyzed that is forecast to see an international visitor drop in 2025. "People are worried that their devices are going to be searched and that there is a risk of deportation before you even get into the country," said Geoff Freeman, CEO of the U.S. Travel Association. "What is most concerning is that to this date, we have not done anything to counter that fear and send a message that we want travelers to come." Freeman stressed the urgent need for a coordinated marketing strategy to shape more favorable perceptions of America before the current ones become ingrained. Pointing to upcoming events -- the 250th anniversary of the Declaration of Independence next year, the 2026 FIFA World Cup and the 2028 Summer Olympics -- he said the government needs to set a goal for how many of the world's travelers it wants to attract and then develop a way to achieve that aim. "In the absence of doing that, we are just responding to this problem here, this problem there and losing billions upon billions of dollars," he said. The National Travel and Tourism Office, part of the U.S. government's International Trade Administration, did not respond to multiple requests for comment. Brand USA, a nonprofit destination marketing organization partially funded by the federal government, was recently shaken by the abrupt dismissal of five board members by the Trump administration. It said it is preparing "a bold global tourism campaign" that will be launched in June to "showcase the best of the USA from small, rural communities to iconic destinations" in advance of major events such as the FIFA World Cup. "Whether visiting for sporting events or memorable holidays, the USA remains the world's most aspirational destination for vacationers," said Chris Heywood, the organization's senior vice president of public relations. Looking for Strategies The tourism agencies for popular destinations such as New York and California updated their projections this month to reflect an anticipated decline in visitors. New York City Tourism and Conventions entered the year with optimism, forecasting 67.6 million international and domestic visitors, but that number has fallen to 64.1 million, a 350,000 decline from last year. Visit California expects overall visitation to drop by 1%, to 268 million. Both agencies have developed new campaigns to combat negative sentiment. Visit California has partnered with Expedia in its "California loves Canada" campaign, offering Canadians up to 25% off hotels, activities and attractions. Similarly, New York City Tourism and Conventions is running a campaign abroad called "With Love + Liberty, New York City." Jessica Walker, president and CEO of the Manhattan Chamber of Commerce, said local businesses are being buoyed by an increase in domestic tourism. However, there are concerns about the expected international shortfall, especially as foreign travelers tend to stay longer and spend more. "A lot of businesses are just getting over COVID and the debt they had to pay down," Walker said. Air Travel Lagging On the airline front, both international and domestic fares have been falling, indicating weaker demand. Ticket prices fell 5.3% in March compared with the previous year, according to the U.S. consumer price index. Looking ahead to the summer, the average domestic ticket is down 7%, according to the Airlines Reporting Corporation, whose data covers about two-thirds of global sales. While domestic air travel is up 4% this year, fewer Americans have made international summer plans; outbound travel to the top 10 international destinations, which include Mexico and Canada, is down 3% compared with last year, while all international tickets are down 6%, according to ARC. The European Travel Commission, which represents tourism organizations across the continent, said it is bracing for a dip in American travelers. Major U.S. airlines, including Alaska, Southwest, Delta and JetBlue, have recently pulled their 2025 forecasts, citing economic uncertainty. United is lowering international and domestic capacity and axing routes, but said the ebb in demand has partly been offset by the strength of premium cabin bookings, which have continued to rise. Upscale on the Rise Indeed, the one segment that has so far managed to withstand the volatile economy is luxury travel. Virtuoso, a network of upscale travel agencies, said summer demand is up 23%. "The U.S. is our No. 1 destination, and domestic travel is still holding really strong," said Misty Belles, the company's vice president of global public relations. Looking beyond the summer, Sacks said the United States remains a highly desirable destination, with "unique experiences and attractions that will remain attractive for long after this presidency is over."
Straits Times
17-05-2025
- Business
- Straits Times
Summer travel slump? Amid uncertainty, the US brand ‘has taken a beating'
New York City is expecting fewer tourists, with forecasts now at 64.1 million from 67.6 million. PHOTO: BLOOMBERG WASHINGTON – It was supposed to be a big year for travel in the United States, with airlines and hotel companies projecting strong growth. But with the summer travel season about to start, it has instead become a year of uncertainty. Canadian travel to the US is down for a third consecutive month, falling 15.2 per cent compared with April of 2024. Airlines have reduced fares in response to softening demand. US-based hotel chains Marriott, Hyatt and Hilton say they are experiencing slower growth, and all three have lowered their revenue outlook. Airbnb expects growth to ease in the second quarter, and Expedia downgraded its expectations for booking and revenue growth. 'Unpopular policy decisions, whether it be related to Ukraine or trade, are having an effect, and the brand of the country has taken a beating,' said Mr Adam Sacks, president of research firm Tourism Economics, which projects a 9.4 per cent decline in international arrivals to the US for 2025. At the start of 2025, the company was expecting a 9 per cent increase. An earlier New York Times analysis found that international travel to the US had declined only modestly through April, with the exception of arrivals by Canadians, which were down sharply. But, as that article noted, travel analysts were uncertain whether the numbers would hold up and 'the situation could worsen if economies are further weakened by the trade war or if anti-American sentiment rises'. Increasingly, it seems, political and economic confusion created by the Trump administration's 'America First' agenda is causing both domestic and international tourists to reconsider their plans. Foreigners are canceling trips in response to threats of steep tariffs on US trade partners, polarising rhetoric and an immigration crackdown that has resulted in tourists being detained at the US border. American travelers are cutting back over fears of a recession and job insecurity. 'US demand was soft, driven by declining consumer sentiment, and we saw pressure on key inbound US corridors,' Expedia CEO Ariane Gorin told investors in May. Bank of America's credit card and debit card spending also shows softening in travel spending across all income groups. With fewer Americans planning expensive trips abroad, domestic travel, which is generally cheaper, is up 3 percentage points. According to the bank's Summer Travel and Entertainment Outlook report published this week, 70 per cent of Americans planning trips are opting for domestic travel. On the international front, arrivals from most of the 20 top tourist-generating countries such as Britain and Germany actually rebounded after a steep drop in March, with a 0.4 per cent year-over-year increase for April, according to US Department of Commerce data. The decline in March can be attributed, in part, to the fact that the Easter holidays, which are particularly popular in Western Europe, fell later in 2025. Still, the number of visitors from France, normally a reliable source of tourists, remained lower than expected in April, with arrivals down 12.2 per cent. (The data did not include arrivals from Canada, the top source of travelers to the US.) Ms Monique Dubas, 35, an engineer from Paris, cancelled a June trip to New York to show solidarity with a French scientist who was denied entry into the US in March after immigration officers searched his phone and found messages deemed to be critical of President Donald Trump, according to the French authorities. (The Department of Homeland Security later said the decision had nothing to do with Mr Trump.) 'This is wrong and should not be accepted,' Ms Dubas said. After paying expensive cancellation fees, she changed her destination to Mexico. 'I love America, but there are many more inviting places to go right now,' she said. Canadian travellers are, by far, the biggest loss. Arrivals have declined significantly for a third consecutive month as Canadians continue to boycott the US in reaction to tariffs and Mr Trump's comments on annexation. In April, the number of Canadians returning from the US by car fell 35.2 per cent compared with the same month in 2024, and returning Canadian airline passengers fell by 19.9 per cent, according to the latest data published by the government office Statistics Canada. Fewer Americans are planning expensive trips abroad and instead opting for domestic travel. PHOTO: REUTERS A $16 billion loss The tourism industry projects a drop in international visitors that will cost the United States US$12.5 billion (S$16 billion) in travel spending in 2025, falling to less than US$169 billion from US$181 billion in 2024. That is a 22.5 per cent decline from the pre-pandemic peak reached in 2019 and sets the US apart as the only country among the 184 analysed that is forecast to see an international visitor drop in 2025. 'People are worried that their devices are going to be searched, and that there is a risk of deportation before you even get into the country,' said Mr Geoff Freeman, CEO of the US Travel Association. 'What is most concerning is that to this date, we have not done anything to counter that fear and send a message that we want travellers to come.' Mr Freeman stressed the urgent need for a coordinated marketing strategy to shape more favourable perceptions of America before the current ones become ingrained. Pointing to upcoming events – the 250th anniversary of the Declaration of Independence in 2026, the 2026 Fifa World Cup and the 2028 Summer Olympics – he said the government needs to set a goal for how many of the world's travellers it wants to attract and then develop a way to achieve that aim. Brand USA, a nonprofit destination marketing organisation partially funded by the federal government, was recently shaken by the abrupt dismissal of five board members by the Trump administration. It said it is preparing 'a bold global tourism campaign' that will be launched in June to 'showcase the best of the USA from small, rural communities to iconic destinations' in advance of major events such as the Fifa World Cup. 'Whether visiting for sporting events or memorable holidays, the USA remains the world's most aspirational destination for vacationers,' said Mr Chris Heywood, the organisation's senior vice-president of public relations. Looking for strategies The tourism agencies for popular destinations such as New York and California updated their projections in May to reflect an anticipated decline in visitors. New York City Tourism and Conventions entered 2025 with optimism, forecasting 67.6 million international and domestic visitors, but that number has fallen to 64.1 million, a 350,000 decline from 2024. Visit California expects overall visitation to drop by 1 per cent, to 268 million. Both agencies have developed new campaigns to combat negative sentiment. Visit California has partnered with Expedia in its 'California loves Canada' campaign, offering Canadians up to 25 per cent off hotels, activities and attractions. Similarly, New York City Tourism and Conventions is running a campaign abroad called 'With Love + Liberty, New York City'. Ms Jessica Walker, president and CEO of the Manhattan Chamber of Commerce, said local businesses are being buoyed by an increase in domestic tourism. However, there are concerns about the expected international shortfall, especially as foreign travelers tend to stay longer and spend more. 'A lot of businesses are just getting over Covid and the debt they had to pay down,' Ms Walker said. Airlines: 'Growth has largely stalled' On the airline front, both international and domestic fares have been falling, indicating weaker demand. Ticket prices fell 5.3 per cent in March compared with the previous year, according to the US consumer price index. Looking ahead to the summer, the average domestic ticket is down 7 per cent, according to the Airlines Reporting Corporation (ARC), whose data covers about two-thirds of global sales. While domestic air travel is up 4 per cent in 2025, fewer Americans have made international summer plans; outbound travel to the top 10 international destinations, which include Mexico and Canada, is down 3 per cent compared with 2024, while all international tickets are down 6 per cent, according to ARC. The European Travel Commission, which represents tourism organiSations across the continent, said it is bracing itself for a dip in American travellers. Major US airlines, including Alaska, Southwest, Delta and JetBlue, have recently pulled their 2025 forecasts, citing economic uncertainty. United is lowering international and domestic capacity and axing routes, but said the ebb in demand has partly been offset by the strength of premium cabin bookings, which have continued to rise. Both international and domestic fares have been falling, indicating weaker demand. PHOTO: NYTIMES Luxury travel remains strong Indeed, the one segment that has so far managed to withstand the volatile economy is luxury travel. Virtuoso, a network of upscale travel agencies, said summer demand is up 23 per cent. 'The US is our No. 1 destination, and domestic travel is still holding really strong,' said Ms Misty Belles, the company's vice-president of global public relations. Looking beyond the summer, Mr Sacks said the US remains a highly desirable destination, with 'unique experiences and attractions that will remain attractive for long after this presidency is over'. NYTIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Daily Mail
30-04-2025
- Business
- Daily Mail
Report: Decline in visitors to Las Vegas as foreigners snub US
The number of tourists visiting Las Vegas has plummeted as international visitors have begun to shun the United States. Sin City welcomed 3.39 million visitors last month, down almost eight percent from 3.68 million in February, according to a report by the Las Vegas Convention and Visitors Authority. The report, obtained by 8 News Now , also revealed that hotel occupancy has slumped over the past year. Hotels were 82.9 percent full last month, compared with 85.3 percent full in March 2024. Midweek occupancy recorded a decline of 2.5 percent in the same period, despite more than half a million people attending conferences. Casinos also reported an almost five percent drop over the past year. Statewide, the figure fell by 1.1 percent. In downtown Las Vegas, rooms were fractionally cheaper than they were a year ago at an average of $100.31 compared with $100.97. It comes as hotel rates on the Strip have soared, while the number of overseas air passengers had dropped. A report by the International Trade Administration found that the number of foreign air passengers had plunged by 10 percent over the past year. In Las Vegas, Harry Reid International Airport recorded a four percent decline in passengers according to the Clark County Department of Aviation. Road traffic also dipped by 3.1 percent, according to the LVCVA. Bloomberg reports that the decline in international tourism could cost the US economy almost $90 billion. The article quoted a Canadian family who is shunning the US in the wake of punitive tariffs and inflammatory remarks by President Trump. Tourists from elsewhere have cancelled trips to the US amid fears they could be caught up in the president's immigration crackdown. Last week two young German tourists found themselves detained and deported for not having any accommodation booked when they arrived in Hawaii. In March a British backpacker found herself locked up for nearly three weeks after allegedly having the wrong type of visa when she tried to enter the US from Canada. 'There's been a dramatic shift in our outlook,' Adam Sacks, president of Tourism Economics, told the Washington Post. 'You're looking at a much weaker economic engine than what otherwise would've been, not just because of tariffs, but the rhetoric and condescending tone around it.' Want more stories like this from the Daily Mail? Visit our profile page and hit the follow button above for more of the news you need.
Daily Mail
30-04-2025
- Daily Mail
Shocking decline in visitors to Las Vegas revealed as foreign tourists shun the United States
The number of tourists visiting Las Vegas has plummeted as international visitors have begun to shun the United States. Sin City welcomed 3.39 million visitors last month, down almost eight percent from 3.68 million in February, according to a report by the Las Vegas Convention and Visitors Authority. The report, obtained by 8 News Now, also revealed that hotel occupancy has slumped over the past year. Hotels were 82.9 percent full last month, compared with 85.3 percent full in March 2024. Midweek occupancy recorded a decline of 2.5 percent in the same period, despite more than half a million people attending conferences. Casinos also reported an almost five percent drop over the past year. Statewide, the figure fell by 1.1 percent. In downtown Las Vegas, rooms were fractionally cheaper than they were a year ago at an average of $100.31 compared with $100.97. It comes as hotel rates on the Strip have soared, while the number of overseas air passengers had dropped. A report by the International Trade Administration found that the number of foreign air passengers had plunged by 10 percent over the past year. In Las Vegas, Harry Reid International Airport recorded a four percent decline in passengers according to the Clark County Department of Aviation. Road traffic also dipped by 3.1 percent, according to the LVCVA. Bloomberg reports that the decline in international tourism could cost the US economy almost $90billion. The article quoted a Canadian family who is shunning the US in the wake of punitive tariffs and inflammatory remarks by President Trump. Tourists from elsewhere have cancelled trips to the US amid fears they could be caught up in the president's immigration crackdown. Last week two young German tourists found themselves detained and deported for not having any accommodation booked when they arrived in Hawaii. In March a British backpacker found herself locked up for nearly three weeks after allegedly having the wrong type of visa when she tried to enter the US from Canada. The British government has warned that travelers could face being arrested or detained if they fail to abide by rules which are being strictly enforced by US border agents. The picture is not all negative in Las Vegas however, where occupancy on the Strip was still above levels seen in March 2024. This is despite prices for hotel rooms soaring by almost four percent to an average of $188.75 a night. Research firm Tourism Economics estimates that visits to the US will decline by 5.1 percent in 2025, which will ultimately contribute to a $64 billion loss for the domestic tourism industry. The company originally forecasted a nearly 9 percent tourism jump this year, a prediction that was revised late last month because of 'polarizing Trump Administration policies and rhetoric.' 'There's been a dramatic shift in our outlook,' Adam Sacks, president of Tourism Economics, told the Washington Post. 'You're looking at a much weaker economic engine than what otherwise would've been, not just because of tariffs, but the rhetoric and condescending tone around it.'
CBS News
19-03-2025
- Business
- CBS News
Trump trade wars could tank foreign tourism in the U.S., report finds
President Trump's trade policies and aggressive rhetoric threatens to hurt the American tourism sector by discouraging foreign travelers from visiting the U.S., according to a recent analysis. The White House's escalating trade war with Canada, China, Mexico and the European Union, combined with other factors, could weigh heavily on foreign tourism in the U.S. this year, the report from Tourism Economics found. Canada accounts for the sharpest projected decline in travelers to the U.S., with the firm forecasting a 15% drop in the number of visits from the U.S.' northern neighbor in 2025. Overall, international travel from all foreign countries to the U.S. is expected to drop by just over 5%, according to the report. Factoring in diminished spending by Americans traveling domestically this year, overall travel spending in the U.S. could drop up to $64 billion in 2025, according to Tourism Economics, a unit of investment advisory firm Oxford Economics. "The negative effects of an expanded trade war scenario will reach U.S. hotel room demand in 2025," Tourism Economics said in the report. "Domestic travel will be negatively affected by slower income growth and higher prices while international travel to the U.S. will be hit by a trifecta of slower economies, a stronger dollar and antipathy towards the U.S." The group's forecast assumes the U.S. moves ahead with an additional 25% tariff on imports from Canada and Mexico, a 25% tariff on steel and aluminum from all countries, and additional levies on Europe, Taiwan and other nations, along with retaliatory trade restrictions. President Trump has affirmed that the tariffs on Canada and Mexico, which were paused earlier this month, are set to take effect on April 2 . That same day, the U.S. has also vowed to impose matching tariffs on other countries equal to their levies on American imports. In February, air travel from Canada to the U.S. fell a modest 2%, presumably because fliers had already booked and paid for their trips before tensions between the two nations surged, Tourism Economics said. But cross-border trips from Canada by car fell 24% the same month, the group found. Canadians made more than 20 million visits to the U.S. in 2024, accounting for $20.5 billion in spending, according to the U.S. Travel Association . Instead of heading south, more Canadians are likely to travel within the country or head to locales in the Caribbean and Latin America, Tourism Economics President Adam Sacks told CBS MoneyWatch. In a speech last month, former Canadian Prime Minister Justin Trudeau urged residents to "choose Canada" and travel domestically. "It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites and tourist destinations our great country has to offer," he said. Other factors are dampening travel to the U.S., according to Tourism Economics. That includes the U.S. threatening 200% tariffs on European wine and Mr. Trump's fierce criticism of the EU's trade policies, along with the White House's handling of Russia's war on Ukraine, Sacks said. "You get the perception that the U.S. is sympathetic to Russia in a conflict where they are the clear aggressor, and Western Europe is advocating for Ukraine," he said. "So there are three different levels, including recent tensions around handling Ukraine, that could affect European sentiment toward the U.S. and therefore their interest in traveling to the U.S." Americans contribute substantially to domestic tourism, and they, too, are expected to pull back on travel spending this year amid signs of slowing economic growth. Citing the potential hit from U.S. tariffs, the Federal Reserve on Wednesday lowered its outlook for economic growth this year to 1.7%, while forecasting a rise in inflation. U.S. airlines including Delta, Southwest and United have all recently cut their 2025 earnings forecasts because of lower consumer demand stemming from rising economic uncertainty. "With weaker job and income growth and greater uncertainty, households and businesses will pull back on travel spending," Tourism Economics said. "Tariffs are expected to raise the prices paid by U.S. consumers, having a negative impact to lower-income households in particular and applying further pressure on performance at hotels in lower tier chain scales." Tourism Economics projects a 1.4% overall decline in domestic U.S. travel, which it attributed to weaker economic growth and consumers' reduced purchasing power. "Whatever one might think of these policies, their merits and longer term goals, the immediate effects are categorically negative," Sacks said of the Trump administration's tariffs.
