United States likely to lose $1.3 billion in travel-related expenditures In 2017
A Monitor Desk Report 24 May, 2017  |
New York: There was a loss of $185 million in business travel bookings in one week following Brexit and then the Trump Administration’s first travel ban. . It was followed by a second travel ban, which like the first, was halted by court orders. After that, the United States Department of Homeland Security (DHS) barred passengers traveling from 10 airports in eight Middle Eastern and African countries from bringing laptops and other large electronics into the cabin as carry-ons. Hours later, the United Kingdom followed suit issuing their own electronics ban on inbound flights from six countries, impacting six UK airlines and eight foreign airlines.
Using first quarter ticketing data from the Airlines Reporting Corp. (ARC), publicly available travel data and GBTA’s economic research and models, GBTA developed an ‘uncertainty forecast’ for 2017 showing the impact this mounting geopolitical uncertainty is having on the economy. There is no question that uncertainty is bad for business travel and bad for the global economy.
GBTA projects a loss of over $1.3 billion in overall travel-related expenditures in the United States in 2017 including hotels, food, rental cars and shopping expenses that inbound travelers would have spent. That includes $250 million lost in spending from inbound business travelers from Europe and the Middle East.
The even greater concern is that the longer-term impact on business travel will become even larger as companies begin to host meetings and events in other destinations. In an earlier survey of GBTA’s European members, 45 percent indicated their company will be less willing to plan future meetings and events in the United States due to executive orders on travel.
U.S. GDP will take a nearly $300 million hit. More than 4,200 jobs could be lost along with $175 million in wages and $70 million in tax collections. Europe is forecast to lose over $250 million in air fare spending and the Middle East will lose over $80 million in air fare. This devastating economic impact could take years to recover from.