Travel, tourism-related US businesses feel pinch from lower visitor arrivals

Key Concepts:

• Tourism decline in Washington D.C.
• Impact of Trump administration policies on international tourism
• Economic consequences of reduced tourism spending
• Tariffs and border control measures affecting tourism
• Comparison of international vs. domestic tourist spending

Tourism Decline in Washington D.C.

• Catherine, a tour guide in Washington D.C., experiences a significant drop in business during the peak season (July and August).
• Her business has decreased by 85% since Donald Trump resumed office.
• Inquiries from Canadian tourists have significantly decreased due to Trump's suggestions about Canada becoming the 51st US state.
• Catherine gave only five tours in June, compared to her usual 25.

Impact of Trump Administration Policies

• Tourists feel unwelcome due to the political climate.
• Trump's April tariff announcement is seen as detrimental to tourism.
• Reports of tourists being denied entry or detained by border agents contribute to the decline.

Economic Consequences of Reduced Tourism Spending

• International arrivals to the US were down more than 5% year-on-year in May.
• This decline leads to fewer hotel bookings and reduced spending at shops, restaurants, and entertainment venues.
• Professor Andrew Cogginings of Pace University notes the negative impact on the domestic economy.
• New York City, for example, is still recovering from the pre-COVID visitor numbers of over 65 million.
• Foreign visitors spend twice as much per capita compared to domestic visitors.

Comparison of International vs. Domestic Tourist Spending

• Foreign visitors spend on average twice what domestic visitors spend per capita.
• This higher spending by international tourists significantly boosts the economy.

Financial Losses and Economic Ripple Effects

• The World Travel and Tourism Council projects a $12.5 billion loss in international spending for the US this year.
• The US is the only country among 184 analyzed facing a revenue downturn in tourism.
• Neck Use, Head of Research, emphasizes that reduced international spending will negatively impact GDP and job creation.
• Tourism communities are at risk due to the decline in revenue.

Survival Strategies

• Catherine is no longer hiring additional tour guides.
• She is personally conducting the few tours she has.
• She expresses confidence in her ability to survive, drawing on her experience during the pandemic.

Notable Quotes:

• Catherine: "It's not welcoming. You know, you don't feel welcome...Second reason, economically, uh it's a war. It's an economic war announced to everyone."
• Andrew Cogginings: "Foreign visitors to the United States spend on average twice what domestic visitors spend per capita."
• Neck Use: "GDP that could have been created by increased international spending would not would not be created. Um jobs an enormous amount amount of jobs that are supported by tourism would be at risk as well as whole tourism communities to stay afloat."

Synthesis/Conclusion:

The tourism industry in Washington D.C. is facing a significant downturn, primarily attributed to the policies and rhetoric of the Trump administration. This decline is resulting in substantial financial losses, impacting GDP, job creation, and the overall economic health of tourism-dependent communities. The decrease in international tourism, coupled with the higher spending habits of foreign visitors compared to domestic tourists, exacerbates the economic consequences. While businesses are adopting survival strategies, the long-term impact remains a concern.