14 February 2008

After Bush, will US travel bounce back?

The US's $650 billion travel industry is looking forward to a change in the White House after President George W. Bush leaves office, according to news reports.

'While the weak US dollar has put the United States on sale for many travelers, tough border controls and an unfriendly image of the United States abroad may have kept some travelers away. A new administration could help change that,' said Reuters.

Despite the falling dollar, the US has lost 17% market share of international arrivals since the last quarter of 2001, according to Marriott International Inc, the second-largest US hotel company.

"I think you probably need not just a new occupant in the White House, but you probably need some meaningful change in visa policy to get some of that lost share back," said Arne Sorenson, Marriott's chief financial officer.

The weak dollar has attracted foreign tourists to various popular US destinations such as New York and Orlando as the slowing US economy threatens to sap domestic travel demand.

"Some of the immigration laws make it difficult for people to enter our country," said Steven Rudnitsky, chief executive of Ramada and Days Inn operator Wyndham Hotel Group, a unit of Wyndham Worldwide Corp. "We need to make it easier."

One of the latest controversial moves by the US administration is pressing the 27 governments of the European Union to agree to a range of new security measures for transatlantic travel, including allowing armed guards on all flights from Europe to America by US airlines.

The demand to put armed air marshals on to the flights is part of a travel clampdown by the Bush administration that officials in Brussels described as "blackmail" and "troublesome," according to The Guardian.

The move could require Europeans and Britons to have US visas if their governments balk at Washington's requirements.

President George Bush is not idly standing by but is attempting to revive his discredited reputation. His diplomatic passport will acquire a slew of new country stamps during his final year in office as he tries to rebuild the US's international standing and create a foreign-policy legacy beyond Iraq, said Bloomberg.

The US travel industry is an important part of the country's economy. It accounts for roughly 5% of gross domestic product and has been growing faster than the overall economy for the last four years, according to data from the Travel Industry Association.

Report by David Wilkening

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Your Comments (4)

The economy is the major tourism driver

Changing Presidents always has an impact on the economy and thus tourism. I believe that it is a shallow aurgument that national security visa policies have been a major driver is decreasing tourism as compared to other factors - such as decreased domestic travel due fears about the economy. It would not be my first choice to make visa restrictions easier in order to increase tourism - the risks are too great.

By John Darley, Tuesday, February 19, 2008
Protecting our Borders

Unfortunately when bad things happen (9/11)the results are usually a bit backwards, however too many come her on vacation and never leave

By aqemanuele, Tuesday, February 19, 2008
Depends on which party in the White House

I think the travel industry should be careful what they wish for. I have had several of my well-traveled clients state that if the Democrats win in Nov, they will NOT travel out of the country because the terrorists will be dancing in the streets.

By liz, Tuesday, February 19, 2008
Not the correct forum to bash Bush

I would NEVER put the industry I am in before our country. Our immigration laws SHOULD make it difficult for people to enter. I know I won't be booking Ramada and Days Inn's now. Everything this president has done is in an effort to make our country safer. If somebody thinks the things he has done has had a negative impact on the industry - so be it. IMO, the person that did the most harm to our industry is not our president but Osama bin Laden.

By Mark McColloch, Tuesday, February 19, 2008