US tourism expected to face tough times in 2020

Friday, July 12, 2019

Demand for flights remains high, but destinations and hotels outside top destinations in the US have experienced a slight decline in business.

Evidence is increasing though, that the U.S. travel sector could suffer in 2020.

While both tourism and business travel continues to grow, the rate of growth is expected to go down sharply according to new research from the U.S. Travel Association. Demand has gone down over the last year, and the prospect of a flat 2020 looks very much a possibility.

What is the point of concern is a decline in expectations for international inbound travel, which reflects the potential for little to no year-over-year growth for the remaining year.

David Huether, U.S. Travel’s senior vice president for research said, “Headwinds like the strong dollar and lingering trade tensions indicate sluggish growth for international inbound travel, but the much-needed work of the Brand USA destination marketing organization has prevented a further constriction. Political leaders would be wise to act on policies that can help us thrive in spite of these challenging circumstances, such as Brand USA’s long-term reauthorization and the expansion of the Visa Waiver Program.”

Business travel growth continues to be weighed down by the trade war between the U.S. and China along with Brexit. There looks a possibility for reduced trade tensions as the U.S. looks forward to the 2020 elections as a potential buoy to future travel demand.
Strong leisure travel across the U.S. is helping prop up the industry as it experiences a reduction in international visitors.

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