China, which is the epicenter of the outbreak, represents 7% of foreign travel spending in the U.S., up from 1% in 2002.
Amid mounting travel restrictions and growing fear of COVID-19, Tourism Economics is forecasting a 10% drop in international visits to the U.S a year, about double the decline the U.S. faced during the outbreak of severe acute respiratory syndrome, or SARS, in 2003.
This implies 8.2 million lost visitors in one year, even more than the 7.7 million international travelers lost in 2001 and 2002, after the 9/11 terrorist attacks.
In all, it anticipates 825,000 jobs could be lost in the industry, which also includes many small businesses.
“As it’s become a true pandemic, it’s affecting level of travel: travel advisories, companies canceling travel, and traveler behavior, ” said Adam Sacks, president of Tourism Economics. “There is a deep risk aversion when a trip is a voluntary activity. Even if a flight exists and borders are open.”
Globally, Tourism Economics expects travel to fall 9.1% this year, the largest drop ever in the past 40 years its tracked.
“This situation is truly unprecedented,” said Sacks.
The U.S. Travel Association, which represents roughly 150 travel-related organizations has sought to calm nerves. It has urged “fact-based decisions” around traveling, stressing that “for the overwhelming majority, it’s OK to live, work, play and travel in the U.S.”
But that hasn’t been enough to stave off travel restrictions, canceled conferences and general anxiety. Shares of MGM Resorts International closed down 10%, Marriott International down 8.9% and Expedia was down 10.8%.
Article source: https://www.cnbc.com/2020/03/11/coronavirus-travel-industry-could-lose-24-billion-in-tourism-from-outside-us.html