The number of overseas visitors in the United States is gradually reducing, as tit it a 5.4% drop in March compared to what it was last year.
This represents the worst showing since 2015. This makes country tourism chiefs fear that the US may lose out to rival destinations this year
According to figures released by the US Travel Association Tourism also fell in February, albeit by a more modest 0.2 per cent.
These figures are a cause for concern in an industry that is facing labor shortages because of the increasing difficulties in bringing in seasonal workers from overseas consequent of the Trump’s administration’s tougher line on visas.
“The outlook for international inbound travel remains lackluster, suggesting that a further loss of global market share is in the cards for the US in 2019,” said David Huether, Senior Vice President for Research at US Travel, the industry trade association.
The tourism industry is very vital to the US economy, as it represents about 11 per cent of the country’s total trade surplus of $77.4 billion.
In 2018, international tourism generated $197 billion for the US economy.
During the Obama administration, the economic importance of tourism was recognized, as the Travel Promotion Act was passed to boost the industry.
There was heavy investment in technology in order to cut airport immigration delays. The Brand USA was established to spearhead a global tourism campaign.
However, tourism slumped in the aftermath of Donald Trump’s election as visitors were put off by the rhetoric coming from the White House and the uproar surrounding the attempt to ban people from several Muslim majority countries.
Though the controversy has lessened in intensity, official figures suggest that US immigration officials are continuing to take a tougher line than before.
Statistics produced by Customs and Border Protection show that just over 279,036 people were denied entry into the US at ports of entry in 2018 and 216,370 in 2017. However, so far this year 163,377 have been turned away.
There are other reasons behind the disappointing numbers, as the strength of the dollar has made the holidays more expensive
In a report commissioned by the industry, Oxford Economics warned that this represents “a headwind for international inbound travel.”
“Soft global economic activity, persistent trade tensions and uncertainty surrounding the Trump administration remain major risks to international traveler sentiment,” it added.
“The US share of the international long-haul market has been falling from a peak of 19.2 per cent in 2015 to 16.8 per cent last year.”
The trade war between Beijing and Washington and concerns in Europe over the Brexit negotiations which saw a double-digit slump in Chinese tourism to the US – are some other factors driving tourism down.
The industry’s difficulties have been aggravated by problems finding staff to work in hotels and restaurants.
With the economy booming, there are not enough Americans available to fill the vacancies, leaving the tourism industry to rely on seasonal workers who are allowed into the country on the H-2B visa program.