Latest news with #AranRyan
Newsweek
6 days ago
- Business
- Newsweek
US Economy Could Lose $8.5 Billion Amid Decrease in Foreign Tourism
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Tourism to the United States is projected to dip this year, with international visitor spending expected to fall by $8.5 billion amid tougher trade and immigration policies, according to an Oxford Economics report. Why It Matters Since taking office in January, the Trump administration has implemented hardline immigration enforcement actions, with tourists facing increased scrutiny and screening measures, while also enacting sweeping global trade measures that have hindered foreign relations. The U.S. is the world's largest market for travel and tourism, according to the World Travel & Tourism Council (WTTC). The industry contributed around $2.6 trillion to the U.S. economy last year, and analysts and economists have estimated that it will significantly drop this year, with the WTTC forecasting a $12.5 billion reduction. International tourism touches many parts of the U.S. economy, driving revenue across hospitality, transport, and retail, as well as supporting millions of jobs. What To Know In a May 21 research briefing, director of industry studies at Tourism Economics, part of Oxford Economics, Aran Ryan said, "We expect a decline of 8.7% in US international arrivals for the year overall." It noted that "perceptions of the US impact these [travel] decisions." He stated, "Factors contributing to the negative outlook include Trump administration posturing and policy announcements, such as 'Liberation Day' tariffs across long-standing trade partners," adding, "Media coverage of border security incidents and national travel advisories also poses risks." The expected dip in tourism forecasts international visitor spending to drop by $8.5 billion. It predicts a 20 percent decrease in visitation from Canada and around a 6 percent decrease from Western Europe. The report found that there are approximately 11 percent fewer flights booked to the U.S. during the summer season, between May to July, than at the same time last year. The summer high season is typically from June to August. Travelers walk through Miami International Airport ahead of the Thanksgiving holiday, Wednesday, Nov. 22, 2023, in Miami. Travelers walk through Miami International Airport ahead of the Thanksgiving holiday, Wednesday, Nov. 22, 2023, in Miami. AP Photo/Lynne Sladky Other experts and financial firms have estimated even larger costs, with Jukka Laitamaki, professor of international hospitality and tourism at New York University, telling Newsweek in March that the economic impact could be "anywhere between 60 to 120 billion USD in 2025." What People Are Saying Geoff Freeman, president and CEO, US Travel Association, told CNBC on May 28, 2025: "Whether fair or not, a perception is taking hold that more people are being detained, more devices [are] being searched and legal travelers [are] being deported back to their origin country. That creates a great deal of fear." Julia Simpson, president and CEO of World Travel & Tourism Council, said in a news release on May 14, 2025: "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. While other nations are rolling out the welcome mat, the U.S. government is putting up the 'closed' sign." Eva Stewart, Global Managing Partner at GSIQ, previously told Newsweek: "Data shows that global negative impressions of the U.S. as a travel destination have continued to rise since the start of this year. Our estimates suggesting this could wipe out up to 10% of potential global travel demand into America. This is undoing years of great work and hundreds of millions in marketing spend by cities, states, and Brand USA to promote U.S. destinations." What Happens Next Ryan expects a near 9 percent decline in international visitors to the U.S. this year.
Axios
16-04-2025
- Business
- Axios
Tourism to America is under threat
International tourism to the U.S. is falling fast, and the actions of the Trump administration are only likely to make things worse, industry experts say. Why it matters: The travel industry was worth $1.3 trillion in 2024, and supported 15 million U.S. jobs, per the U.S. Travel Association. Now, that revenue — and those jobs — are being threatened. The big picture: Non-U.S. citizens were already wary about visiting the U.S. in March, according to Aran Ryan at Tourism Economics. Visits from Germany alone plunged by 28% year-on-year in March, he wrote in a recent report, showing the "early ramifications of a potent mix of negative sentiment, which has developed abroad in response to polarizing rhetoric and policy actions by the Trump administration, as well as concerns around tighter border and immigration policies." What's next: "March may be just the beginning," he added, noting that the "Liberation Day" tariffs will only damage sentiment further. Driving the news: Secretary of State Marco Rubio sent an extremely harsh message on Saturday to anybody thinking of visiting the country. "Visiting America is not an entitlement," he wrote in a Fox News opinion piece. "It is a privilege extended to those who respect our laws and values." "We expect — and the law requires — all visa holders to demonstrate their eligibility every day their visa is valid." Between the lines: "When you're traveling to another country, whether it's for a business trip or a personal trip, you you want to have the assurance that you're going to be able to enter the country and be welcomed," says Henry Harteveldt, president of Atmosphere Research Group. "The actions and words of the U.S. right now are not very welcoming to international visitors." That applies especially to international conferences, Harteveldt said, the kind of events that bring enormous amounts of spending to U.S. cities. If many delegates start indicating they're nervous about traveling to Trump's America, those venues could end up being moved to other countries, including Canada and Mexico. Where it stands: "The travel industry is seeing concerning trends," a spokesperson for U.S. Travel tells Axios, including "a question of America's welcomeness." "The hotel industry and the millions of people who work in it rely on strong domestic and international travel to thrive," adds Ralph Posner of the American Hotel and Lodging Association. "We are closely following any policy that could set back our recovery."
