Published on : Thursday, June 7, 2018
Travel and tourism is an $8 trillion market – approximately 10% of the world’s GDP, and is expected to increase by 44% in the next decade, according to Jonathan Tisch, the chairman and CEO of Loews Hotels & Co. Tisch was addressing an audience at the 40th Annual NYU International Hospitality Industry Investment Conference.
However he warned, “Even though the global travel market is growing, the US share of the market fell nearly 13% over the past few years. That means we missed out on 7.4 million international visitors, $32 billion in lost spending at American destinations and businesses and 100,000 additional jobs.”
Tisch said that many leaders in the hotel and tourism business believe that America currently is giving off an unwelcoming message. As example, he cited President Donald Trump’s policy of “extreme vetting.”
People in other countries are aware of the US administration’s travel ban, immigration policies, anti-globalist rhetoric, and recent call for a 25% steel tariff.
Tisch pointed out, “If people don’t feel welcome, they won’t visit the US. They won’t shop in our stores, eat in our restaurants, stay at our hotels and vacation at our destinations.”
The US tourism industry needs well-planned, proactive marketing. With intense global competition for travelers, Tisch continues to support Brand USA, a public-private marketing organization focused on increasing international visitors to visit the US.
In addition, he said advancements in technology such as facial recognition software and 3-D baggage scanners would make traveling safer.
Third, upgrading infrastructure, including airports, roads and bridges is necessary.
“As an industry, we are uniquely positioned to help solve these challenges while growing the US share of the global travel market,” said Tisch. “The future is ours to win. But we must compete. We must invest. We must innovate.”