The major airlines and hotel chains in the United States are among the first to be affected by the economic and immigration measures implemented by the new government of Donald Trump.
The imposition of new tariffs, uncertainty in international trade, and stricter border controls are causing a decline in travel demand and a significant blow to the tourism sector.
In less than two months, the shares of airlines Delta Air Lines, American Airlines, and United Airlines have plummeted between 35% and 36%, after starting the year with signs of recovery.
La Vanguardia reported that, in addition to the impact on airlines, major hotel chains such as Marriott, Intercontinental, and Hilton have lost between 17% and 22% of their stock value.
The low consumer confidence and fear of a recession are directly impacting the spending habits of Americans. “Tourism is not a priority in times of economic uncertainty,” explained David Neeleman, CEO of Breeze Airways, referring to the reduction in travel consumption.
Companies like Delta and United have announced that they will reduce their operational capacity if the situation does not improve. United plans to retire part of its oldest fleet early as a corrective measure.
Canadian airlines have also cut flights on cross-border routes amid a climate of bilateral tension.
The tightening of immigration policies is another factor that is beginning to take its toll. Reports of visitors facing issues at the border and the cancellation of trips from Canada, in response to the new approach of the U.S. government, reinforce the perception of a less welcoming destination.
The effect extends to Europe, where companies like IAG (the parent company of Iberia and British Airways) have experienced significant declines in the markets this month, just like the Lufthansa group, although they maintain their routes to the United States. Overall, the European tourism sector has lost 11% of its stock market value in March.
The pressure on tourism companies is increasing in a context of measures that have disrupted the usual flow of travelers and the international economic climate. Analysts warn that if these policies persist, new rounds of corporate adjustments could be on the way.
Impact of Trump's measures on the tourism and hotel sector
How have Trump's policies affected the tourism sector in the United States?
Trump's policies have led to a decline in travel demand and a significant impact on the tourism sector. The imposition of new tariffs, the tightening of border controls, and a hostile rhetoric towards foreigners have discouraged international tourists, resulting in significant losses for U.S. airlines and hotel chains.
What impact have Trump's economic measures had on U.S. airlines?
The stocks of major U.S. airlines have dropped dramatically, falling by between 35% and 36%. Economic uncertainty and fears of a recession have led Delta and United Airlines to consider reducing their operational capacity and retiring part of their fleet to cut costs.
Why are U.S. hotel chains losing value in the stock market?
Hotel chains have lost between 17% and 22% of their stock value due to the decline in hotel demand and low consumer confidence. Fears of a recession and travel restrictions have discouraged tourism, adversely affecting the revenues of these companies.
What effects does Trump's hardline immigration stance have on international tourism to the U.S.?
The tightening of immigration policies has instilled fear among international tourists, resulting in trip cancellations and a negative perception of the United States as a destination. Cases of border detentions and unexplained returns have discouraged visitors, particularly from Canada and Europe, impacting tourist flow.
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