President Trump is Affecting Tourism to the U.S.
The potential spillover effect from President Trump’s travel ban that we mentioned as a risk to our investment in Hilton is starting to show up in the data.
The US tourism business is in trouble — and President Trump may be to blame.
America’s share of international tourism has dropped 16% in March, compared to the same month in 2016, according to Foursquare data released Wednesday.
The decline began in October 2016, the month before the presidential election. From October to March, tourism-related traffic has fallen an average of 11% in the US, compared to the previous year. Meanwhile, tourism in the rest of the world has increased 6% year-over-year during the same period.
The hotel industry reported a flat year-over-year room occupancy rate. The Average daily raite and revenue per available room continued to grow.
From HotelNewsNow.com: STR: US hotel results for week ending 20 May
The U.S. hotel industry reported flat occupancy and slightly higher rates year over year during the week of 14-20 May 2017, according to data from STR.
In comparison with the week of 15-21 May 2016, the industry recorded the following in the three key performance metrics:
• Occupancy: Flat at 70.6%
• Average daily rate (ADR): +1.5% to US$127.91
• Revenue per available room (RevPAR): +1.5% to US$90.26
STR analysts note that occupancy for the week was pulled down due to comparison with a non-Mother’s Day Sunday in 2016.
The hotel industry isn’t showing the same decline yet but there is a lag between foursquare’s research data and what the hotel industry reports.