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Trump's Travel Ban Poses An Economic Threat To Luxury Hotels

Travelers Today       By    Jestan Dale Mendame

Updated: Apr 14, 2017 04:00 AM EDT

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travel ban, Muslim Travel Ban, US Travel Ban, Marriot Hotel, donal trump

Recently, US President Donald Trump has issued a US travel ban on certain Muslim countries. The move is yet to create a negative effect on different sectors of the economy; however, luxury hotels have been hit the hardest since the implementation of the ban.

Following the signing of the travel ban by Trump, travels coming from the Middle East and North Africa to the US have declined by 20 percent. Also, travel from Mexico to the US has declined by 10-20 percent, which in turn greatly affected some of the world's biggest hotel industries.

Marriott, the world's largest hotel operator, noted a drop in bookings by about 30 percent in the month of February. According to the New York Post, Marriott International CEO Arne Sorenson was vocal about the negative impact of the whole situation and said that ban is "not good, period."

With this quantified impact, hotels further monitor the effects. Banned regions may not have the largest percentage of the bookings at Marriott, but they are said to be the biggest spenders. Meanwhile, David Chase, managing director of Omni Berkshire Palace, stated that these guests contribute to about 10 percent of the room revenues for The Palace since they travel in large groups and stay for a longer time.

A few years ago, a prince got the services of The Palace and wanted 180 hotel rooms for three months. The prince was staying in a suite that costs $11,000 a night, which garnered revenues to The Palace that amounted to about $1.2 million. But hotels aren't the only ones affected because according to Gulf Business, Emirates' flight bookings have drastically decreased overnight by 35 percent after the January ban.

Sorenson emphasized that the current administration's decision on the ban should be reconsidered. Hoping to have more constructive talks and discussions about the issue, he also stated that travel and immigration are two "different things."

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