Yet another study projects the U.S. travel and tourism industry will take a significant hit in the wake of anti-travel policies and growing geopolitical uncertainty.
The Global Business Travel Association (GBTA) released its latest forecast Friday, projecting a $1.3 billion-plus loss in overall travel-related expenditures in the U.S. during 2017.
The expenditures include spending on hotels, food, car rentals and shopping that inbound travelers would have contributed to if not for the current circumstances.
The GBTA's 2017 uncertainty forecast was developed based on Airlines Reporting Corporation (ARC) ticketing data, publicly available travel data and its own economic research and models.
Of the $1.3 billion in anticipated lost spending, $250 million is expected from inbound business travelers from Europe and the Middle East. President Trump has signed two executive orders attempting to ban travel from parts of Africa and the Middle East while a subsequent electronics ban is currently impacting travelers from those regions.
"We urge the Trump Administration to consider the important lasting impact of business travel and enact policies going forward that preserve both our national security AND our economy for the future," the GBTA stated in its report.
The GBTA forecast also anticipates U.S. GDP to sustain a nearly $300 million hit as a result of recent policies and the uncertainty that's followed. More than 4,200 jobs could be lost as well as $175 million in wages, according to the organization, while $70 million in tax collections could be lost.
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The GBTA forecasts $250 million in lost airfare spending in Europe. Meanwhile, the Middle East is projected to miss out on $80 million in airfare. The ARC recently revealed that planned travel from the Middle East to the U.S. was down almost six percent since Trump signed an order seeking to ban visitors from half of a dozen Muslim-majority countries in the Middle East and Africa.
The GBTA warns that the negative economic impact it expects this year could take many more to recover from.
"Business travel drives lasting business growth and is a leading indicator for jobs and the economy at large," the organization stated. "Continuing to enact policies that discourage business travel will cause a rippling effect across the travel industry and the overall economy."
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