The United States risks losing billions in travel-related spending due to uncertainty from the Trump administration’s travel ban and restrictions on carrying portable electronics on international flights, according to the Global Business Travel Association.
GBTA warns that the combined effect of these policies could create a perception that the United States is less welcoming to business, discouraging travel and damaging the country’s appeal as a destination for meetings and corporate events.
The association’s findings draw in part on ticketing data from Airlines Reporting Corp, which indicates a potential decline of $1.3 billion in spending on hotels, rental cars, dining and retail, along with an estimated $943 million reduction in airline ticket revenue.
Breaking down the impact further, GBTA projects business travel spending could fall by $248.7 million, while business travelers may spend $332 million less on airline tickets. Inbound business travel from Europe and the Middle East is expected to drop by roughly $250 million.
Mike McCormick, executive director of GBTA, expressed concern that the longer-term effects could be more severe if companies decide to relocate meetings and events to other destinations. He noted that in a prior GBTA survey of European members, 45 percent said their company would be less willing to hold future meetings and events in the United States because of travel-related executive orders.
In addition to the revenue losses, GBTA estimates that the decline in business travel could lead to the loss of more than 4,200 jobs tied to the business travel sector.