Canadian travelers have been giving the United States the cold shoulder since President Donald Trump increased tariffs and sovereignty attacks, but they are not the only ones.
The latest travel data show that international arrivals to the United States fell into all areas as commercial tensions and stricter border policies stimulated international travelers to cancel or postpone trips, Ksenia Bushmeneva, economist from Toronto Dominion Bank, said in a report yesterday.
“The negative feeling among potential travelers has increased, which caused boycott and more doubts to visit the United States,” he said.
Arrivals abroad to the United States fell around 12 percent in March since last year, with the most popular states among foreign visitors: New York, Florida, California, Nevada and Texas, suffering more, he said.
Caribbean air arrivals and Central America led the decrease by percentage, followed by Mexico, Western Europe and Canada.
Western Europe travelers, which represent approximately 18 percent of international visitors to the United States and are the main source of the New York state, 190,000 visitors decreased.
The closest neighbors in the United States, Canada and Mexico represent 50 percent of international traffic and both saw a strong decrease in March, Bushmeneva said.
The arrivals of airports in Canada, the largest source of international travelers to the US, fell 13.5 percent (around 112,000 visitors) and the return trips by car decreased even more, falling by 32 percent or 700,000. The fall will arrive in Florida, New York, Washington, California and Michigan the most difficult.
Nor does it seem that the summer travel season will change this trend.
“Future Flight reserves in Canada have collapsed, decreasing by 70 percent for each month until September,” Bushmeneva said. Hotel reserves have fallen by 7.8 percent of a year ago, and have dropped 13 percent in New York City.
Travel and tourism is a multimillion -dollar industry in the United States, the largest in the world, and the slowdown of foreign visitors will weigh not only in this sector but also throughout the economy. Last year, international visitors spent $ 286 billion in the US.
New data from the World Travel and Tourism Council (WTTC), shared exclusively with Bloomberg, projects that the United States is on the way to losing US $ 12.5 billion in travel revenues this year. Of the 184 economies analyzed by WTTC, the United States is the only country that will lose tourism dollars.
“Other countries are really deploying the welcome carpet, and it seems that the United States is placing a sign of ‘we are closed’ at its door,” said WTTC executive director Julia Simpson.
Tourism represents about 3 percent of the Gross Domestic Product of the USA. UU. And uses 20 million people.
“As an intensive laboratory sector, it is a powerful engine for job creation: only last year, leisure and hospitality represented 16 percent of all new private sector jobs,” Bushmeneva said.
Although foreign travelers are important, domestic tourism is the true money creator, which represents about 75 percent of the US spending. UU. Now it also shows signs of tension. Less Americans plan to travel this year, even within their own country, such as volatile values ​​markets, economic uncertainty and the threat of growing inflation undermine trust, as the latest data show.
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Finally some good news about Canada’s trade. March data may have shown a strong decrease in exports to the United States, but was compensated by an increase in shipments to the rest of the world, as the Toronto Dominion Bank picture shows.
Other positive side, about 50 percent of Canadian goods that were addressed to the US.
“However, while the uncertainty about the business relationship persists, companies are understandably cautious. With the discomfort hung on the economy, things are unlikely to become soon,” wrote Andrew Hencic, a senior economist of TD.
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Today’s position was written by Pamela Heaven with additional reports of Financial Post, Canadian Press and Bloomberg.
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