Tourism Flows in the US

PROSPECTS

So-called “Trump slump” appears to be less influential than initially feared

Expectations that President Trump’s xenophobic rhetoric would have negative effects on inbound tourism flows may have been unfounded. The US Department of Commerce is still finalising its data and there have been reports that there are issues with this data collection process.

Visa restrictions affect some travellers, while others benefit from visa waiver programme

While the Trump’s administration’s travel ban on some countries will have a very matter-of-fact impact on arrivals from the source markets affected, these nations account for a small share of total inbound arrivals. However, several other countries that do contribute a significant share to inbound arrivals such as Brazil and India have faced visa restrictions, new visa requirements or longer waits for their visas.

Strong dollar may encourage many travellers to delay trips to the US

When looking at currency exchange rates, approximately 70% of inbound arrivals come from countries in which the US dollar was stronger than the local currency in 2017 and into 2018. The high value of the US dollar can be a strong deterrent to traveling, leading people to delay trips until the currency loses some of its exchange value.

New York remains top city for inbound arrivals

New York remains the number one city for inbound arrivals in the US and this is largely due to the plethora of sightseeing attractions that the city offers. Furthermore, as New York is the country’s financial epicentre, business travellers contribute strongly to the many millions of international visitors arriving in New York.

Airport renovations, low-cost carriers have power to boost arrivals

Overall, the Airports Council International – North America states that USD75.7 billion has been set aside for infrastructure projects until 2019 and airport renovation projects are underway or in the pipeline in several major cities across the US.

Open skies may open floodgates to Chinese travellers

2019 is expected to see the US and China sign an open skies agreement, which will make it easier to travel between the two countries. Indeed, many US and Chinese airlines have already developed strong relationships.

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