The United States potentially faces billions of dollars in lost revenue this year due to a decline in tourism and a growing boycott of American products.
Figures from the International Trade Administration (ITA) reveal that the number of foreign travellers arriving in the US by air in March was almost 10 percent lower than in the same period last year. Contributing factors include perceived hostility at US borders, escalating geopolitical tensions worldwide, and persistent economic uncertainty. Furthermore, disapproval of President Trump’s policies is also playing a role in the decision-making of potential travellers.
Investment bank Goldman Sachs warns that the economic damage in the worst-case scenario could amount to 0.3 percent of the gross domestic product (GDP), which translates to nearly 90 billion dollars. Foreign tourism has been a significant pillar of the US economy in recent years, partly due to the easing of travel restrictions following the COVID-19 pandemic. However, an increasing number of tourists are currently reconsidering their travel plans to the US.
Reduced prices
Recently, several airlines have already reported a (albeit limited) decrease in demand for flight tickets to the United States. These airlines include major carriers such as Delta Air Lines and Virgin Atlantic. The Franco-Dutch airline group Air France-KLM has also noted a slight decline in bookings for Economy Class. In the premium classes, demand remains stable according to the airline group. To maintain occupancy rates in Economy Class, ticket prices are being reduced slightly on certain routes.