California might lose 17 million tourists due to Trump travel ban

Published on : Friday, March 3, 2017

californiaCalifornia is likely to lose a substantial chunk of its high-spending international tourists on account of the complications associated with the Trump administration and the important trade partners.


In the year 2015, the tourism sector of this state had provided employment to 1 million people statewide and had also represented $1of every $40 that had been created by the California economy. This has been reported by the latest statistics that are available from the VisitCalifornia tourist bureau.


This has travel experts speculating whether the heated geopolitical scenario of the United States might be instrumental in scarying away an overwhelming 17 million tourists who had arrived in California from distant lands in 2015.


But then, this state has a risk of incurring yearly spending amounting to $24 million that are generally spent by the foreign tourists.


The international tourists comprise just 6% of all California tourists.


However, their business impact has been amplified by their heavy spending that comes to $1,400 per visit against the $400 each for the domestic tourists. Those large foreign budgets account for about 22% of the tourism spending in the state, as per the VisitCalifornia. International traveller arrivals represent a robust business growth.


The foreign portion of the state’s tourism dollars is up from the existing 18% mid-recession in the year 2009 and 15% in 2003, a short while after the 2001 terror attacks and the war in Iraq and Afghanistan.


To add to the woes of the tourism sector of California, some of the most-lucrative visitors to California generally are based from the countries where the foreign leadership and new administration do not sync with each other.


And, most of the tourists heading to California belong to Mexico, since as much as 7.8 million tourists to the former are from Mexico. Having said that, these Mexican tourists do not prefer spending much. In fact, they spend merely $397 per visit.


This adds up to $3.1 billion of Mexican cash arriving in California.


Much of California’s heavy tourism spending is sourced from China who end up spending nearly $2,191 every trip that adds up to about $2.5 billion or 10% of foreign tourist spending.


The economy of California has close links with several global business leaders all across the world and this precisely leaves the business climate of the state quite vulnerable to any negative ripple effect of new ‘American First’ policy.


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