A recent analysis by economic research firm IMPLAN, reported by CBS on May 26, reveals that the ongoing decline in international tourists visiting the United States could result in the loss of more than 230,000 jobs domestically. The food service and accommodation sectors are expected to be hit the hardest.
The drop in tourism numbers threatens the stability of the US travel industry, which plays a crucial role in supporting the nation’s economy. “The impact of the decline in international tourist arrivals on employment will be significant,” said Jenny Sovalsson, Chief Economist and Data Officer at IMPLAN. According to the World Travel & Tourism Council, nearly 10% of US jobs are linked to the tourism sector.
A spokesperson for the US Travel Association affirmed the economic importance of international inbound tourism, noting that visitors typically spend around $4,000 per trip. The World Travel & Tourism Council forecasts that total international tourist spending in the US will drop 7% this year, from $181 billion in 2024 to $169 billion.
Experts attribute the slowdown in international travel to the US to factors such as stricter immigration policies by the federal government and long visa processing times. “Shifts in global sentiment and perceptions of the US are expected to continue significantly impacting travel demand,” said Alan Ryan, Head of Industry Research at Tourism Economics, a division of Oxford Economics.
Statistics from Tourism Economics show that international arrivals to the US fell 14% in March compared to last year. Flight bookings to the US from May to July are down 10.8% year – on – year, and the annual number of international tourists is projected to decline by 8.7%.
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