The Arizona Republic

Slump or bump?

Travel industry ticks up, contrary to earlier fears about Trump administra­tion policies

- BETH J. HARPAZ

A U.S. tourism industry once worried that Trump administra­tion policies might lead to a “Trump slump” in travel might actually be having a “Trump bump.” Internatio­nal arrivals and travelrela­ted spending are up in 2017, compared with the same period in 2016.

NEW YORK - Last winter, the U.S. tourism industry fretted that Trump administra­tion policies might lead to a “Trump slump” in travel.

But those fears may have been premature. Internatio­nal arrivals and travel-related spending are up in 2017 compared with the same period in 2016.

There might even be a “Trump bump,” says Roger Dow, CEO of the U.S. Travel Associatio­n, a nonprofit representi­ng the travel industry.

A few months ago, Dow and others warned that President Donald Trump’s anti-immigrant rhetoric and ban on travel from some mostly Muslim countries could send an anti-tourism message.

But “impending doom hasn’t manifested itself,” Dow said. “Right now we cannot identify a loss. It’s contrary to everything we’ve heard, but travel is in slightly better shape than it was a year ago. Everyone wants me to tell the story of the sky is falling, but for the travel industry, the sky is not falling.”

Latest numbers from the U.S. Travel Associatio­n’s Travel Trends Index showed 6.6 percent growth in internatio­nal travel to the U.S. in April and 5 percent growth in May compared with the same months last year. The Travel Trends Index uses hotel, airline and U.S. government data.

Individual sectors have good news, too. Hotel occupancy for the first five months of 2017 was “higher than it has ever been before,” said Jan Freitag, senior vice president with STR, which tracks hotel industry data. American Express Meetings & Events has “not seen a slowdown in either domestic U.S. meetings or internatio­nal meetings from the U.S. in the past six months,” according to senior vice president Issa Jouaneh. Even New York’s National September 11 Memorial and Museum has more internatio­nal visitors: 554,381 at the museum Jan. 1-July 11, up from 517,539 the same period last year.

Florida’s Orlando Internatio­nal Airport, a gateway for theme park visitors, reported growth for domestic and internatio­nal passengers year to date, though Visit Orlando CEO George Aguel said it was “still premature to determine a specific impact” from Trump administra­tion policies.

Internatio­nal trips are often planned months in advance, so decisions made this year about travel may not be evident yet.

“For us, we already planned before the election,” said Alban Michel, waiting with a group of Swiss tourists to see One World Trade’s observator­y in New York on Monday.

Companies that track online behavior say searches for U.S. travel are down. Yet tour companies that bring foreigners here are “not only holding year over year, but in many cases they’re having a record year,” according to Chris Thompson, CEO of Brand USA, which markets the U.S. to the world. Thompson thinks it’s “too early to tell” how the industry will fare, adding that the travel industry’s ups and downs may have “little or nothing to do” with Trump and more to do with the strong dollar and lackluster economies elsewhere.

Asked if there’s a “Trump slump” in travel to the 12 Southern states marketed by Travel South USA, CEO Liz Bittner said, “The truth of the matter is no. I think it was a lot of media hype.” Bittner agreed that the challenge for U.S. tourism “isn’t so much Trump. It’s the strong U.S. dollar against some of the other currencies,” which makes the U.S. an expensive destinatio­n for foreigners.

Daniele Biron, an Italian visiting the 9/11 memorial Monday while in New York for a conference, agreed that “the value of the dollar” is a factor for many travelers, but “I don’t know if the politics” matter to most visitors.

Charlie Mallar, owner of the 1785 Inn in Conway, New Hampshire, had his busiest July 4th weekend in 34 years, but says “foreign visitors were off a bit — Trump effect. We have to assure foreign visitors that they are welcome in America.”

The Travel Trends Index predicts slower growth for the rest of 2017, but still nearly 2 percent higher than last year through November.

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