(TAN): Travel spending from both domestic and foreign travellers in the United States could decline 45% by the end of this year, a research from American analytics company Tourism Economics commissioned by U.S. Travel Association predicted.
While domestic travel spending could sink 40% to USD 583 billion in 2020 compared with USD 972 billion in 2019, international inbound spending is forecast to plunge a staggering 75% to USD 39 billion in 2020 versus USD 155 billion a year earlier.
Americans are expected to take just 1.6 billion trips within the country this year, 30% less than what they took last year, the study indicated. Domestic trips taken by Americans could dip to the lowest level in almost 30 years.
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Tori Emerson Barnes, U.S. Travel Association Executive Vice President for Public Affairs and Policy said the tourism sector, which employed 10% Americans before COVID-19 struck, has been impacted more than any other industry in the country.
“The data is telling us that travel and tourism has been more severely damaged than any other U.S. industry by the economic fallout of the health crisis. Given that travel employed one in 10 Americans and was the No. 2 U.S. export before the pandemic, supporting this industry through to the recovery phase ought to be a national priority,” she said.
The data comes as the U.S. Travel launches its first-ever “Virtual Hill Week”, connecting around 300 industry members with lawmakers in the House and Senate to discuss travel priorities and needs.
Participants could discuss extending Paycheck Protection Program eligibility to destination marketing organisations, tax incentives including a temporary travel tax credit and credits for personal protective equipment, protection from COVID-19-related lawsuits for businesses that follow safety guidelines, and call for USD 10 billion in Economic Development Administration grants for destination marketing organisations and small businesses to promote healthy travel practices.
“Our asks for lawmakers are substantial, but they’re also simple: we need relief, protection, and stimulus for the travel industry to make it past the worst of the crisis and help power an economic recovery,” Barnes added.
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