Published on : Jan 21, 2015
U.S. tourism industry is experiencing a slump due to lack of international tourists. Jeremy Merrin, New York-based restaurant owner stated that the strong dollar is making things more expensive for outsiders, which is making the tourism suffer. On a average, international tourists in U.S. spends about $200 billion per year on shopping, dining, hotels, and travel. However, in the coming year, this growth is expected to plummet as travelers cannot seem to afford the strong dollars due to weaker economies back home.
Senior Vice President, Research, at the U.S. Travel Association stated the strong dollar will negatively impact the duration of the visitors and the composition of spending in the country. He further added that the negative impact of dollar will further worsen in the second half of 2015.
The problems of a strong dollar can be felt in industries other than tourism as well. An appreciating dollar means manufacturers will have to reduce their financial projections as cost of exports rise for U.S.-based goods. U.S.-based enterprises that have operations in foreign land will also record revenues on the lower side as money earned there will be converted to dollars.
However, some travel experts are hoping that the drop in travel to the west would mean that travel to eastern countries such as China will increase, thus offsetting the overall loss likely to experienced by global travel and tourism industry. Experts are also hoping that low gas prices and growing U.S. economy will further boost domestic travel. The impact is already being experienced by some high-end retailers such as Tiffany & Co.